Life insurance gives you peace of mind that your loved ones will be covered financially when you die – your next of kin may become responsible for any outstanding debts you may have, your childcare costs or mortgage repayments. Even if you have no debts, own your home outright and have been careful with your finances throughout your life, you may still wish to take out a life insurance policy to leave a legacy for your loved ones and to help cover the cost of your funeral arrangements.
These are some of the key reasons why people buy life insurance:
- Buying a new home – you’ll be protecting the cost of payments on your home and meeting your financial commitments should the worst happen.
- Getting married – a policy that pays out if one of you were to pass away will ensure your partner’s financial commitments are covered.
- Planning a funeral – policies such as over-50s life cover term life cover will pay the cost of a funeral on death.
- Having a baby – raising a child is expensive and if you’re planning private schooling or university, the costs can be enormous. Taking cover to protect your children’s future expenses will give you peace of mind and reassurance for them.
- Inheritance tax – If you want to protect the legacy that you’ll leave your loved ones when you die rather than have it all pass to HMRC, you could consider putting your life insurance policy into a trust, which will ensure what you leave behind will be exempt from inheritance tax.
There are three main types of term life insurance:
- Level cover offers a fixed cash sum on your death.
- Decreasing cover pays out a reduced cash sum over time in line with your debts, loans or repayment mortgage – the longer your cover is in place, the less will be paid out.
- Increasing cover pays out an increased cash sum each year to counter inflation – your cover increases in line with our monthly payments.
If you’d like to know more about life insurance, talk to our team of independent insurance protection advisers who have access to a great range of insurance products and can find you the right plan for your needs. Call us on 08454 500200 or click here to make an enquiry.
Critical illness cover is a type of health insurance policy that will give you peace of mind and can provide a considerable payout if you’re diagnosed with a life-threatening illness. Illnesses covered vary widely depending on your critical illness policy provider, but a number of core conditions are traditionally covered by all:
- Heart attack
- Kidney failure
- Coronary artery bypass
- Multiple sclerosis
- Major organ transport
- Permanent disability caused by an illness or injury
Critical illness policies usually carry a number of specific conditions that would render a claim invalid, so always check the exclusions to ensure you’re adequately covered. These exclusions could include pre-existing medical conditions, minor heart attacks or early cancer diagnoses.
In contrast to income protection insurance that provides you with a regular payout to replace your lost income, critical illness cover gives you a lump sum, tax-free payment that you can use to pay your mortgage, your living expenses and, if required, your treatment.
Why you should consider critical illness cover:
- If you don’t receive any benefits that would cover you for long-term sickness from your employer.
- If you don’t have enough savings to pay for your care or your living expenses if you become ill and can’t work.
- Depending on your financial circumstances, you may be able to claim statement benefits of around £100 per week – if that isn’t enough, critical illness can bridge the gap.
- If you’re single and don’t have any dependents, critical illness will give you a one-off payment as opposed to a payment they’ll need in lieu of your income.
The cost of premiums for a critical illness policy will vary according to your age and health, i.e. the level of risk you represent to your insurer, so it’s important that you talk to an independent financial adviser who’ll have access to multiple products from trusted insurers across the entire market.
If you’d like to know more about critical illness protection, talk to our team or insurance specialists and we’ll help you find the most suitable cover. Call us on 08454 500200 or click here to make an enquiry.
If you’re unable to work due to sickness, a disability or if you lose your job, mortgage payment protection insurance will cover the cost of your mortgage payments. Without it, you’ll still need to make your monthly mortgage repayments or risk losing your home.
There are two ways that you can protect your mortgage repayments if the worst happened. You can make a claim on your mortgage protection payment insurance policy or use the payments you’ll receive on a general income protection insurance plan to meet the cost of your mortgage repayments.
In essence, there are three different types of mortgage protection payment insurance and costs will vary according to the product you choose. In order of insurance premiums, starting with the least expensive, these are the different types of mortgage protection payment insurance:
- A basic ‘unemployment only’ policy will only cover you if you’re made redundant.
- An ‘accident and sickness only’ policy will only cover you if you have a long-term illness or suffer a serious injury.
- An ‘accident, sickness and unemployment’ policy is a belt-and-braces plan that will cover you if you’re made redundant have a long-term illness or suffer a serious injury.
When you make a claim on your mortgage protection payment insurance policy, your provider will pay you a fixed sum each month, usually for up to two years from the date you became unable to work or lost your job. You will usually have the option to base what you could be paid out on your salary – this is typically up to half your monthly wage. Other options include covering the cost of your mortgage repayments alone or extend it to cover the cost of your living expenses and/or regular bills too. This is usually up to 125% of the cost of your mortgage.
Bear in mind that if your illness prevents you from returning to work for more than two years, mortgage protection payment insurance may not provide you with the cover you need. In this case, consider taking out an income protection insurance policy.
If you’d like to know more about mortgage protection payment insurance, talk to our team of independent insurance protection advisers who have access to a great range of insurance products to suit your personal circumstances. Call us on 08454 500200 or click here to make an enquiry.
If you can’t work due to sickness or a disability, an income protection policy will pay you a regular income until you can get back to work or retire. It’s also known as permanent health insurance and, before you take out a policy, make sure that you actually need income protection.
Income protection checklist
- Some employers provide income protection insurance as a benefit. Check your employment contract or ask your personnel department to see if you’re already covered.
- Do you have savings you could use to give yourself an income instead of paying for income protection insurance? If you have a long-term health issue, you may not be able to cover your living expenses or emergency care through your savings.
- Are you already covered on another policy? Some mortgage policies or other insurance policies build in cover for different types of illness, including long-term sickness or critical illness, which only covers a limited range of illnesses. Take a look at your policy or contact your provider to find out if you’re covered or can extend your existing policy.
- Check the terms and conditions of a prospective income protection policy carefully and ensure that you’re happy to accept the exclusions that may apply. These might include pre-existing medical conditions or family history of some illnesses or if the type of work you do still means you’ll be covered.
- Can you afford income protection insurance? The costs associated with income protection and critical illness policies can be high – especially if you are older – premiums are age and health dependent.
If you make a claim on your income protection insurance policy, traditionally you’ll have to wait at least four weeks after you stop work before your payments will begin – these waiting periods can last considerably longer so be prepared. You should also ask if your payments will increase in line with the cost of living and if you’ll have a penalty-free cancellation period should you change your mind.
If you’d like to know more about income protection insurance or critical illness, talk to our team of independent insurance protection advisers who have access to a great range of insurance products to suit your circumstances. Call us on 08454 500200 or click here to make an enquiry.
Development finance is a loan that’s used to fund residential developments, such as new-build construction projects or refurbishment schemes for converting property into flats, bedsits or HMOs. Whether you’re an experienced property developer, a landlord or you’re keen to kick-start your first new-build or renovation project, there’ll be a development finance route that suits your initiative.
Development finance is a form of short-term funding that will enable you to pay for your construction and development costs. It could mean a ‘refurbishment bridge’ that will fund a few months’ building costs of a light refurbishment project or the more substantial costs from covering your initial land investment outlay to completion of the final plot.
Your lender may agree to finance a proportion of the plot purchase and another percentage of the build – this way you would need to inject far less of your personal money, which would be freed up to cover the cost of other projects or unexpected expenses. When you have a property portfolio with a lot of equity, you can use your property to secure further lending – this could be invaluable when you have insufficient liquid cash to grow your portfolio.
Property development can be a challenging environment and weighing up your best and worst-case scenarios is a critical exercise when it comes to funding your project. Getting your finance right in good time will ensure your development activities can proceed and thrive – regardless of the economic climate.
To find out more about development finance for your next project, talk to our team of expert advisers and we’ll help you find a funding stream that will help you from the ground up. Call us on 08454 500200 or click here to make an enquiry.
Equity release is a way of unlocking a cash lump sum that’s tied up in your home – usually up to 60% of the value of your property – and without having to move. You will normally need to be over the age of 55 to be eligible and you can release the funds as a lump sum or in stage payments or both.
There are two equity release options that should suit most circumstances:
The most common option, a lifetime mortgage is secured on your home so you can continue to own it and you choose whether to make repayments or allow interest to accrue, which will mean the debt can rise quickly. Depending on your lifetime mortgage product, you may be able to make interest payments. When you die or move into care in the years ahead, the loan and outstanding interest will be repaid.
A home reversion product will entail selling part of all of your home to a provider. You’ll be able to stay in your home until you die and you’ll need to make regular or lump sum payments to the provider as well as maintaining and insuring the property. When you die or move into permanent residential care, your property will be sold although your estate will still retain the proportion of the property you held back at the start.
Equity release can be a complex concept and you’ll need to be sure that you’re getting the very best equity release advice. Talk to our team of expert mortgage advisers about your options and we’ll guide you through the process. Call us on 08454 500200 or click here to make an enquiry.
The costs for buy-to-let mortgages depend on your mortgage product, your loan-to-value (LTV) ratio and the term of your buy-to-let mortgage deal; the lower your LTV and the shorter duration of your product, the cheaper your buy-to-let mortgage will cost. You should also bear in mind that, as a landlord, you can no longer claim all of your mortgage interest against Income Tax on rent.
Most buy-to-let mortgage lenders will want your rental income to be at least 125%, and sometimes as high as 145%, of your monthly mortgage repayment or mortgage interest. Lenders will then use a managed rate as opposed to your actual mortgage product rate to work out your monthly buy-to-let mortgage repayment. Remember, in addition to your rental yield, you’ll also need to meet the lender’s criteria for income, age and credit score.
Here’s an example of your rental yield:
- Property value: £300,000
- Monthly rental income: £1200
- Expected rental yield: 80%
Interest rates for buy-to-let mortgages vary according to the type of product you choose, which include fixed-rate, standard variable rate (SVR), tracker and discounted variable rate. Your monthly interest payment will depend on the size of your loan, your property’s rental yield and your financial circumstances, including your credit score. You’ll also need to pay charges to your buy-to-let mortgage provider.
There are advantages and disadvantages of all buy-to-let mortgage products so you should get professional advice from an expert, independent buy-to-let mortgage broker who will have access to all ranges of products currently available on the market.
To find out more about buy-to-let mortgages, call our expert team of mortgage advisers and we’ll help you find the right product to suit you, your property and your pocket. Call us on 08454 500200 or click here for more information.
If you’re thinking of taking out a buy-to-let mortgage, you’ll need to satisfy the following criteria:
- You own your own home – either mortgaged or owned outright.
- You want to invest in houses or flats that you’ll rent out to tenants.
- You have a good credit score and don’t have too many other borrowings that could make it hard for you to maintain your buy-to-let mortgage repayments if the property is unoccupied.
- Lenders have varying upper age limits, which will refer to the oldest you can be when you take out a buy-to-let mortgage.
- You understand the risks associated with investing in property. You’ll know that rates can go up as well as down and a mortgage is secured on your property – if you don’t maintain your mortgage repayments, you home could be repossessed.
If a buy-to-let mortgage sounds like the right type of mortgage for your next property purchase, your first step should be to talk to an independent mortgage adviser who has access to the best buy-to-let mortgage deals on the market. Your mortgage adviser will also be able to tell you if you qualify for a buy-to-let product.
Talk to our team of expert mortgage advisers today to find out more about buy-to-let mortgages. Call us on 08454 500200 or click here to make an enquiry.
If you’re already a landlord or are looking to buy a property to rent out, you should be considering a buy-to-let mortgage. A wide range of fixed-rate, standard variable rate (SVR), tracker and discounted buy-to-let mortgages are available and, although they’re similar to ordinary residential mortgages with the same laws, there are some differences that you need to be aware of.
Costs are higher
Fees for buy-to-let mortgages can be higher than traditional mortgages and interest rates will also be higher on a buy-to-let mortgage.
You’ll need a bigger deposit
Because buy-to-let mortgages are considered a higher risk than residential mortgages, the minimum deposit you’ll need for a buy-to-let mortgage can be higher. You’ll usually need a minimum deposit of 25% of the property’s value, although this can vary between 20% and 40% depending on your mortgage lender and buy-to-let mortgage product.
Repayments for the majority of buy-to-let mortgages are interest-only, which means you won’t be reducing the capital sum that you borrowed. At the end of the buy-to-let mortgage term, you’ll repay what you originally borrowed in full. Talk to your mortgage adviser if you’re specifically looking for a repayment buy-to-let mortgage.
The majority of buy-to-let mortgage funding isn’t regulated by the Financial Conduct Authority (FCA). Your mortgage adviser can give you guidance on consumer buy-to-let mortgages if you want to let your property to a family member.
Your lender will usually require the rental income on your property to be up to 30% higher than your buy-to-let mortgage repayment so do your homework by researching rental values in your area. Remember that you’ll still need to make your mortgage repayments when your property is unoccupied and that, if house prices fall, you may fall into the negative equity trap and will have to make up the shortfall if you decide to sell.
You’ll also be required to pay Capital Gains Tax (CGT) on your buy-to-let property when you sell and Income Tax on any profit that you make on your rental income. Depending on your income tax band, you could be taxed at 20%, 40% or 45%. Talk to your accountant about CGT, Income Tax and Mortgage Interest Tax Relief, which is changing.
As you can see, there’s more to buy-to-let mortgages than you might think. It’s always best to talk to an experienced, independent mortgage adviser to find out if you’re eligible for a buy-to-let mortgage and to see which buy-to-let product is most suitable for you. Call our expert team on 08454 500200 or click here to find out more.
As with any mortgage process, remortgage timescales can take anything up to two months depending on how complicated your application or circumstances are. If you’re remortgaging to save money when your existing fixed-rate mortgage comes to an end, ensure you give your application sufficient time to avoid a more expensive follow-on or standard variable rate.
You’ll need to go through a mortgage interview to ensure you’re eligible for a remortgage. Lenders apply strict affordability criteria to remortgage applications and stress tests to see if you’ll be able to meet your monthly repayments should interest rates change.
Your lender will also want to conduct a valuation of your home to ensure your loan-to-value (LTV) ratio is sufficient for its products. If the value of your home has decreased and you’re in a negative equity situation, you might want to wait for house prices to rise or you’ll have to make up the shortfall from your own pocket.
Finally, the legal process will take time. Your solicitor will have a number of conveyancing matters to complete, including Land Registry searches and other formalities that may hold up the process.
If time is of the essence, it’s worth arranging a remortgage through your existing lender. The transaction will then be dealt with as a product transfer so the legal process could be substantially reduced.
If you’re keen to remortgage your home, you should take advice from an independent mortgage broker who will be impartial and have access to a wide range of products on the market. Call us on 08454 500200 or click here to make an enquiry.
There are a number of reasons why people choose to remortgage – the most popular reason is to borrow at a lower interest rate than your current mortgage deal. If you have a fixed-rate mortgage deal that’s coming to an end or you’ve already moved to your lender’s follow-on or standard variable rate, a remortgage can enable you to benefit from a lower rate. Likewise, if your home is worth more than when you bought it, your loan-to-value (LTV) ratio could mean you’ll have access to much better deals.
If you need to raise money for home improvements or a big purchase, a remortgage can release the funds to help make it more affordable. You might want to take advantage of low interest rates to consolidate your debts and make a single, affordable monthly repayment.
It may be that your work, family or financial circumstances have changed and you need to switch to a new mortgage product that reflects your new situation – a remortgage can be a great financial move for homeowners.
Remember that a remortgage as with any mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
If you’d like to find out more about remortgaging your home, talk to our team of expert mortgage advisers and we’ll go through your options with you and find a product and a rate that’s the right fit for you. Call us on 08454 500200 or click here to make an enquiry.
A remortgage refers to a new mortgage that you take out on your home or other property you own to either release cash or to replace your existing mortgage. Around a third of all UK home loans are remortgages and by far the biggest reason for remortgaging a home is to save money.
If you’re coming to the end of a fixed-rate deal or simply want to reduce your costs, you can save a lot of money by switching to a remortgage at a cheaper rate. You’ll want to remortgage before your existing rate ends, so your monthly repayments don’t move to a standard variable rate (SVR) – so start looking into this six months before your deal ends. You could be subject to an early repayment charge and/or an exit charge if you’re still tied into a fixed-rate deal.
You can also remortgage to release equity in your home – if you have a big purchase to fund, home improvements to make or want to pay for your retirement, taking out a new deal to borrow more than your existing mortgage, you can take out a cash lump sum.
Essentially, you’ll be clearing your current mortgage with funds raised from your remortgage and using your home as the security for your new loan. You’ll then make mortgage repayments to your new lender with a new set of repayment terms. You can remortgage with your existing lender, which may save time and money, but you’ll want to talk through your options with your mortgage broker.
If you’re thinking of remortgaging your home, you should talk to an independent mortgage adviser who’ll have access to the best rates, deals and remortgage products. Talk to our team of expert mortgage advisers today to find out how much you could save with a remortgage. Call us on 08454 500200 or click here to make an enquiry.
If you’re buying your first home, you’ll need to know how much you can afford to borrow and how much you’ll need to save for a deposit. Your affordability will depend on your salary, your monthly outgoings and the size of the deposit you’ll have to put down – these may also have an impact on the interest rate you could be offered.
First-time buyer mortgage lenders use a range of criteria to judge your affordability and must obey strict guidelines to ensure you’ll still be able to afford your monthly mortgage repayments if interest rates rise significantly. Lenders will assess your income and expenditure – they’ll take account of big monthly bills and will want to be assured that you’re living within your means. Your outgoings checklist is likely to include your weekly food shop, bills, insurances, hire purchase payments, finance, credit card and debt repayments, childcare, entertainment, car and travel costs, etc.
Your prospective lender will want to see what your monthly budget comprises so, to give yourself a head start, try to boost your savings and watch what you spend in the months leading up to your mortgage application.
In the meantime, you can estimate the size of the mortgage you may need and use our handy mortgage repayment calculator to work out what your monthly repayments will be based on the value of your new home, your income and expenditure. Remember, you may be eligible for the government’s Help to Buy scheme, which will make your house purchase more affordable by reducing your monthly repayments.
Buying your first home can seem daunting so, when you’re ready to talk about mortgages, our team of expert mortgage advisors are on hand to guide you through it. Call us on 08454 500200 or click here to make an enquiry about first-time buyer mortgages and Help to Buy.
As a first-time buyer, provided you meet the strict lending and affordability criteria, there’s a great range of first-time buyer mortgages to suit your circumstances and your budget and to help you get on the first rung of the housing ladder.
As you’re new to the housing market, you may well be offered incentives or cashback schemes to encourage you to apply for a mortgage with them. The deposit you’ll need for a first-time buyer mortgage could be as low as 5% although, again, you’ll need to meet the relevant criteria to show you can afford your mortgage repayments.
You’ll also need to consider what type of first-time buyer mortgage will be right for you. There are several that you might be offered – your mortgage adviser will be able to talk you through the mortgage product that’s right for you, but here are the key features of each:
- A fixed-rate mortgage is a sensible option for first-time buyers because you’ll pay the same monthly payment for as long as your fixed-rate period lasts. After that you can apply for a remortgage to secure another good deal. If you overpay or leave the deal early, you’re likely to pay a penalty, but the rates are usually lower than a variable rate deal.
- Variable rate mortgage monthly repayments are linked to the bank base rate so, when rates are low, your repayments will be low too, but you’ll pay the price should rates rise. Tracker mortgages and discounted rates are also guided by the bank base rate.
- Offset mortgages offset the interest on your savings against your mortgage – talk to your mortgage adviser to check if this is the best use of your savings.
- A repayment mortgage means that every monthly payment you make will go towards paying the capital sum you’ve borrowed until you own your home outright.
- Help to Buy loans are designed to make it more affordable for people to get onto and move up the housing ladder. You’ll need to save a deposit of at least 5% to qualify for the government’s Help to Buy equity scheme, which will give you an interest-free loan of up to 20% (40% in London) to put towards a new-build home valued up to £600,000. You’ll pay interest from Year 6. You can find out more about Help to Buy mortgages
There’s lots to think about when it comes to buying your first home, but we’re here to help you through the process. Talk to our team of expert mortgage advisers about your options and we’ll help take the stress out of your move. Call us on 08454 500200 or click here to make an enquiry.
If you’re a first-time buyer and you’re saving for your first home, you’ll want to know how much deposit you’ll need to get together as early on in the process as possible. Just to clarify – you’ll be classified as a first-time buyer if you’ve never owned a property, either freehold or leasehold in the UK or abroad.
In most cases, you’ll need to have a deposit of between 5% and 20% of the cost of your first home. The more you save, the less you’ll need to borrow and the greater access you’ll have to more mortgages with better rates as you’ll be a less risky investment for lenders.
The difference between the deposit you’ve saved and the first-time buyer mortgage you need is known as the loan to value (LTV) ratio – the higher your LTV, the higher the interest rate you’re likely to pay.
Remember there are other costs associated with buying a new home. You’ll need to pay solicitor’s fees, survey and search costs, mortgage arrangement and valuation fees, buildings insurance and removals costs. You’ll also need to pay Stamp Duty Land Tax (SDLT) – as a first-time buyer, you’ll pay no Stamp Duty on the first £300,000 for homes worth up to £500,000.
Buying your first home can be as nerve-wracking as it can be exciting, so talk to our team of expert mortgage advisers about your options and we’ll guide you through the process. Call us on 08454 500200 or click here to make an enquiry.
A credit score is a three-digit number compiled by credit score agencies and is based on all the financial transactions that you’ve made, including things like bank accounts, credit cards, utility bills, loans, county court judgments, bankruptcies and IVAs.
Credit scoring is used by lenders to predict how likely it is that you’ll repay your mortgage or other loan and whether you’ll make your payments promptly. It can also affect whether or not you’re approved for a mortgage and the interest rate you’ll be offered.
There are several ways you can improve or repair your credit score to maximise your chances of being offered a good mortgage deal.
- Check your credit score online – the three main UK credit reference agencies are Experian, Equifax and TransUnion (formerly Callcredit) – and rectify any mistakes.
- Keep all your personal and financial information up to date and ensure it’s correct.
- Make sure you’re registered to vote – you can do this online at https://www.gov.uk/register-to-vote.
- Avoid making late payments or missing payments as they’ll stay on your credit file for six years.
- Don’t apply for lots of credit at once.
- Avoid moving home too much.
If you have any questions about your credit score and/or your suitability for a mortgage, talk to our team of expert mortgage advisors and we’ll help with the answers you need. Call us on 08454 500200 or click here to make an enquiry.
If you’re moving home and need a mortgage or are looking to remortgage your existing property, a specialist mortgage adviser can be your best ally and remove a significant element of stress from your moving process. You should always talk to an independent mortgage broker who isn’t tied to specific mortgage lenders and can recommend the best mortgage deals from the whole of the market.
An expert mortgage adviser will have experience of all types of mortgages and access to all the latest mortgage products, interest rates and incentives and can often get a better deal than you could if you went direct to the lender.
Your mortgage broker will provide you with an ‘Initial Disclosure Document’ that will outline all the services they proved and whether or not they can recommend all mortgages that are available on the market – some lenders only offer mortgages through certain brokers.
If you have unusual circumstances or specific requirements, appointing an independent mortgage adviser will always be your best bet. For example, if you’re self-employed and depend on irregular freelance earnings, commission or bonuses, if you’re a first-time buyer, need a bridging loan or are remortgaging – talk to a specialist mortgage adviser to ensure you receive the best advice.
Call us today on 08454 500200 or click here to find out more about our specialist mortgage services.
When you apply for a mortgage, you must be sure you can afford the monthly repayments – remember that a mortgage is a loan secured against your home and your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
A specialist mortgage adviser can help you calculate if your income and expenses mean you can afford your monthly repayments should interest rates go up or if you were to experience a change in personal circumstances. These could include having a baby, experience long-term sickness, taking a sabbatical or career break, being made redundant or taking early retirement. All these changes could impact on your ability to meet your mortgage repayments.
Mortgage lenders used to calculate how much you could borrow by multiplying your income, for example by three, four or five times, to determine the size of mortgage you’d be eligible for. Since 2014, mortgage lenders cap your ‘loan-to-income’ ratio to ensure you can afford the monthly repayments after taking account of your monthly income and outgoings. If your mortgage lender suspects you might struggle to meet your mortgage repayments, the size of mortgage you may be offered could be reduced, which could, in turn, affect your ability to secure the new home you’ve been looking for.
The best way to determine what size mortgage you can afford is to talk to a specialist mortgage adviser with the expertise and independence to guide you through the maze of mortgage products and lenders that are best suited to your circumstances. Call us on 08454 500200 or click here to make an enquiry about your new mortgage.
When you’ve made the decision to move to a new house, remortgage or get onto the housing ladder and need a mortgage to fund your purchase, you’ll want to ensure you’re eligible to borrow enough funds to secure your new home.
Your first step should always be to talk to a specialist mortgage adviser who will talk you through your options and check to see if you’ll qualify for a mortgage and can afford the monthly repayments before you reach the application stage.
All mortgage applications are subject to strict lending and eligibility criteria – a number of factors will determine whether you’ll qualify for a mortgage, including the size of your deposit, how much you want to borrow and your credit history. Your credit rating, employment status, your income and expenses, existing borrowing, dependents and age will also be assessed to verify your mortgage eligibility.
Your mortgage adviser will run through your financial history, your salary and your budget and, in addition to identification checks, you’re likely to be asked for evidence of any savings and/or investments and your earnings. It would be helpful to print off recent payslips, tax documents and bank statements, etc. and remember take along your driving licence or passport to use as ID when you meet your mortgage adviser.
A ‘soft’ credit search that won’t impact your credit score can be carried out by your mortgage adviser, so you’ll be able to start the application process with confidence with a ‘decision in principle’ or an ‘agreement in principle’.
If you’re thinking of applying for a mortgage, talk to our team of expert mortgage advisors and we’ll arrange a convenient time to meet you and check your eligibility. Call us on 08454 500200 or click here to make an enquiry.
When you’ve made the decision to move to a new home or remortgage your existing property, getting the best mortgage deal is likely to be at the top of your list of wants. By far the most effective way of securing a good mortgage rate from a trusted provider is to talk to an expert mortgage advisor. A good mortgage specialist will have access to the most competitive rates available on the market and be able to find a deal that’s the right fit for you and your circumstances.
Before you start house-hunting, you’ll need to do some groundwork to assess how much you can afford to spend on your new home – remember to include your deposit, legal fees and Stamp Duty, etc. When you have an idea of what you need to borrow, you can then work out what your mortgage payments are by using our mortgage repayment calculator.
By talking to a specialist mortgage adviser early on in the process, you’ll get all the advice you need on the mortgage product that’s right for you. Your deposit, your age and having a joint borrower may determine the rate and the term of your mortgage. You’ll need to decide which type of mortgage you’d like, such as a fixed-rate, variable rate, first-time buyer, repayment or interest-only mortgage. There may be fees, penalties and, of course, incentives available that could also sway you towards a particular product too.
When you’ve found the right mortgage product, your mortgage adviser will get the ball rolling and, when you’ve found your dream home, the next exciting step will be to make your offer.
No matter where you are in the house moving process, talk to our team of expert mortgage advisors and we’ll guide you through it all. Call us on 08454 500200 or click here to make an enquiry.
You’ll need at least a 5% deposit for your new home under the terms of the Help to Buy: Equity Loan scheme. The government will lend you up to 20% of the value of the property (40% in London) and you’ll need to take out a mortgage for the remaining 75% (55% in London).
Each month you’ll make repayments on both your Help to Buy loan and your mortgage. Here’s an illustration of what you would pay on the Help to Buy initiative each month:
- Purchase price: £310,000
- Less deposit: £15,500
- Help to Buy equity loan: £62,000
- Mortgage: £232,500
- Your monthly repayment: £806.87*
*This illustration represents a capital repayment mortgage over a 30-year term on a two-year fixed rate of 1.54% with a £999 arrangement fee and a free basic mortgage valuation. Example rates vary daily so this illustration does not constitute an offer and any mortgage is subject to full underwriting, affordability and credit scoring via the lender. Both this rate and the product were valid at the time of writing.
Remember that a mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
If you want to find out more about Help to Buy or would like to know if you’re eligible for a Help to Buy: Equity Loan, contact our expert mortgage advisers and we’ll talk you through your options. Call us on 08454 500200 or click here to get in touch.
To qualify for the government’s Help to Buy: Equity Loan scheme, you’ll need to satisfy the following key criteria:
- You must have at least 5% of the sale price of the property to use as a deposit.
- The new home must be valued at less than £600,000.
- It must be a new-build property.
- It must be your only property.
- The property cannot be rented out to tenants.
- When you sell the property, you must repay your equity loan at the same ratio as you borrowed, i.e. if you borrowed 20% as an equity loan, you’ll repay 20% of the sale price.
If you need help understanding Help to Buy or would like to know if you’re eligible for a Help to Buy: Equity Loan, talk to our expert mortgage advisers and we’ll help you make it happen. Call us on 08454 500200 or click here to get in touch.
Help to Buy is an equity loan scheme provided by the government to help first-time buyers and existing homeowners get into a brand-new home in a more affordable way and just a 5% deposit.
The conditions are that the new-build property must be less than £600,000, your only property and you cannot rent it out to tenants. You can borrow 20% of the purchase price (40% in London) and make up the rest of the price through your deposit and a repayment mortgage. The loan will be interest free for the first five years as long as your deposit is at least 5% of the purchase price. In year six, you’ll be charged 1.75% and, after that, fees will rise by inflation linked to the Retail Prices Index (RPI) plus 1% each year.
The government’s equity loan element must be repaid after 25 years – earlier if you sell your home in that time. When you sell your home, you must repay the same percentage of the proceeds of sale as you borrowed, for example, if you borrowed 20% as your equity loan, you’ll repay 20% of the proceeds of your sale.
If you’d like to know more about Help to Buy or have found a new-build home that you need a mortgage for, talk to our expert team of mortgage advisers and we’ll guide you through the process. Call us on 08454 500200 or click here to make an enquiry.
The government’s Help to Buy: Equity Loan scheme is designed to get people into a brand-new home with just a 5% deposit. In essence, the government will lend you up to 20% of the cost of your new-build home, leaving you to pay a 5% deposit and take out a 75% mortgage to cover the rest of the funding. Most importantly, you won’t be charged any fees on the 20% loan for the first five years.
To be eligible for a Help to Buy loan, your new home must be newly built and under £600,000. You can’t own any other property and you won’t be able to sublet your new home or take a part-exchange deal on your old property.
The Help to Buy: Equity Loan scheme is only available in England and, in London, where house prices are historically higher than the rest of the country, the upper limit for the equity loan provided by the government is 40%.
The Help to Buy: Equity Loan scheme will run until 2023 – on 1st April 2021, it will be restricted to first-time buyers only and regional price caps will apply. If you’re thinking of taking advantage of the initiative and currently own a home, you’ll need to apply before April 2021.
If you’re interested in buying a new home with Help to Buy, contact our team of expert mortgage advisers and we’ll explain in more detail how the scheme can apply to you and get you started on your moving journey. Call us on 08454 500200 or click here to make an enquiry.
The best way to compare mortgages is to speak to a qualified mortgage and protection expert. They will be able to search the marketplace on your behalf and tailor their activity to meet any specific requirements you might have.
A personal loan is typically unsecured, whereas a mortgage will be secured against bricks and mortar, i.e. the home that you are buying or have bought.
This depends on the enquirer’s individual circumstances. A ‘like for like’ remortgage with no adverse credit or a low Loan to Value mortgage with no adverse credit would likely be the ‘easiest’ to achieve.
This depends on the enquirer’s individual circumstances, however, making overpayments on your mortgage product would be the most straightforward way to pay any outstanding balance off within a five-year period. It is always worth checking with your lender or whichever mortgage broker set this up to make sure it is feasible and without any penalties such as early redemption charges.
Absolutely. This is a good way to ensure you can achieve a lower rate, get a better deal for yourself, perhaps reduces the term of the mortgage and ultimately benefit from lower monthly payments.
This depends on many external factors including the state of the economy leading into 2021. It will also depend on the enquirer’s individual circumstances and mortgage requirements.
No, not necessarily. Again, it depends on the enquirer’s individual circumstances and in some cases refinancing with your current lender might be the cheapest option.
Initially your credit score will drop as you are taking on a substantial loan (in the form of a mortgage) but if you continue to make regular mortgage payments this will strengthen your credit score.
Typically, it is more cost effective to refinance with a mortgage broker as they will be able to give you access to more lenders and preferential rates. Did you know that 74% of mortgages are arranged via a mortgage broker? Get the right advice from an experienced Mortgage & Protection Adviser.
This depends on the enquirer’s individual circumstances, however, making overpayments on your mortgage product would be the most straightforward way to pay any outstanding balance. It is always worth checking with your lender or whichever mortgage broker set this up to make sure it is feasible and without any penalties such as early redemption charges.
Alternatively, remortgaging to a reduced mortgage term will speed this process up depending on the individual’s circumstances.
FIXED - where your interest rate is guaranteed to stay the same for a set period of time.
TRACKER – where the interest rate you pay is based on an external rate - usually the Bank of England base rate - plus a set percentage.
DISCOUNT - where the interest rate is pegged at a set amount below the lender’s standard variable rate (SVR) for either a set period (e.g. two or five years) or for your whole mortgage. The SVR is an interest rate set by your lender, which can increase or decrease by any amount and at any time.
This depends on the enquirer’s individual circumstances, but each lender has its own specialisms so the advice would be to shop around or even better, get the right advice from an experienced Mortgage & Protection Adviser.
Buying a property is an investment and you won’t be paying someone else’s mortgage which is what happens when you rent! You will build up equity within a property and it is also a good option for saving money for children/grandchildren.
This depends on the enquirer’s individual circumstances and we would recommend you seek advice from an experienced Mortgage & Protection Adviser.
In principle this is the same as any other mortgage, and the benefits could mean incurring less costs as opposed to a shorter-term arrangement where you would need to pay for administrative and set-up fees etc.
These mortgages are rare, and traditionally, no they are not common. This depends on the enquirer’s individual circumstances and we would recommend you seek advice from an experienced Mortgage & Protection Adviser.
You would pay less interest on a 15-year mortgage but the monthly payments would be higher, typically. In this instance, it would also depend on the enquirer’s individual circumstances and we would recommend you seek advice from an experienced Mortgage & Protection Adviser.
You buy a share of a property and you would pay a monthly mortgage in addition to paying the Housing Association rent who would also own the property with you. Over time you can buy additional shares of the property and this is an option you can look into when remortgaging your property, it is advised to speak with a Mortgage & Protection adviser when doing so.
The majority of the high street lenders offer shared ownership mortgages and we would recommend you seek advice from an experienced Mortgage & Protection Adviser.
This depends on the enquirer’s individual circumstances and we would recommend you seek advice from an experienced Mortgage & Protection Adviser.
This is an option if you are looking to get onto the property ladder but we would recommend you seek advice from an experienced Mortgage & Protection Adviser.
Disadvantages include not owning 100% of the property until you purchase additional shares and being aware that you have to pay rent to the Housing Association alongside the mortgage. We would recommend you seek advice from an experienced Mortgage & Protection Adviser.
Absolutely, you can treat this as your own home.
This depends on the enquirer’s individual circumstances and we would recommend you seek advice from an experienced Mortgage & Protection Adviser.
You are able to get 100% shared ownership mortgages with some lenders, but typically you may need a minimum 5% deposit. We would recommend you seek advice from an experienced Mortgage & Protection Adviser.
This depends on the mortgage and on the enquirer’s individual circumstances. We would recommend you seek advice from an experienced Mortgage & Protection Adviser for them to be able to calculate this for you.
This is allocated by the relevant Housing Association who determines the rent depending on factors such as the property size. We would recommend you seek advice from an experienced Mortgage & Protection Adviser.
Yes. Shared ownership allows buyers to purchase a share of a home (usually 25% and 75%). They will pay a mortgage on the share they own and a below-market-value rent on the remainder to a Housing Association.
Help to Buy is a government backed scheme where the Help to Buy equity loan enables purchased to buy a new build home - the government provides a loan of up to 20% (40% in London) so the purchaser only needs to raise a 5% deposited with a 75% mortgage making up the rest.
Yes, this is possible, to pay for your share of the property you can either use cash to buy it outright or borrow the funds via a mortgage.
Yes, you can if you don’t pay the monthly rental, we recommend you seek advice from an experienced Mortgage & Protection Adviser.
Yes, it is. However, it is slightly different to selling a property on the open market, you would need to contact your Housing Association as the sale must be done via them.
No, they aren’t but you will need to take into consideration the rent you will need to pay back to the Housing Association alongside this each month.
Typically, it is four and a half times your income but each lender is different. We would recommend you seek advice from an experienced Mortgage & Protection Adviser.