Purchase
Looking for a Mortgage? Here’s What You Need to Know
Why Look Beyond High Street Lenders?
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While banks and building societies are a common starting point for mortgages, they’re not the only option. Many lenders offer niche products that might better suit your unique circumstances.
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Can I Get a Mortgage?
If you have a steady income and no significant credit issues, you’re likely eligible for a mortgage. Lenders will assess:
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• Affordability: Can you manage monthly repayments?
• Employment History: Stability in your job plays a key role.
• Personal Factors: Age, credit score, and financial history matter.
• Property Details: Lenders also evaluate the property’s type and value.
Different lenders use unique credit scoring systems, so if one declines your application, another might approve it. Market conditions and lender policies also evolve, improving your chances over time.
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How Much Can I Borrow?
Borrowing limits vary by lender and your financial profile. Generally:
• Single Applicants: Borrow up to 4–5 times your annual income.
• Joint Applications: Combine incomes for 3–5 times your total salaries.
Lenders may consider alternative income sources such as dividends, benefits, or overseas earnings, depending on their criteria.
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Do I Need a Deposit?
Yes, a deposit is essential, typically:
• Minimum: 5% of the property value, though this comes with stricter conditions and higher rates.
• Standard: 10–15% for better rates and options.
While 100% mortgages no longer exist, some lenders offer loans to cover the deposit. If saving for a deposit is challenging, speak to one of our advisers to explore your options.
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How Much Will My Repayments Be?
Repayments depend on:
• The loan amount
• Mortgage term (typically 25 years, though shorter or longer terms are available)
• Interest rate and fees
Longer terms lower monthly payments but increase total costs, while shorter terms do the opposite.
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How Can We Help?
As an independent mortgage broker, we search the entire market to find the best product for your needs—not just from high street banks. Our advisers can:
• Assess your affordability and borrowing potential.
• Identify suitable lenders and products.
• Help you secure the best deal based on your circumstances.
Contact us today to start your journey toward owning your first home.
Your Property May Be Repossessed If You Do Not Keep Up Repayments On Your Mortgage.
Remortage
Remortgaging made simple
Remortgaging can be a powerful financial tool, but with so many options, it’s easy to feel overwhelmed. Not sure if it’s the right move? Let us guide you.
What Is a Remortgage?
A remortgage involves replacing your existing mortgage or borrowing additional funds against your property. This can be done with your current lender or a new one offering better terms.
Why Remortgage?
Some common reasons include:
• Securing a lower interest rate
• Releasing equity for home improvements, debt consolidation, or other needs
• Reducing the length of your mortgage term
Benefits of Remortgaging
• Save Money: Lock in better interest rates and lower monthly payments.
• Access Funds: Borrow more, subject to lender criteria, for renovations, investments, or other expenses.
• Improve Terms: Adjust your loan to fit changing financial goals.
Let-to-Buy & Downsizing
Remortgaging can also release equity to help purchase a new property, whether for downsizing or turning your current home into a rental investment.
When to Remortgage
Timing is crucial. Start exploring options 6 months before your fixed-rate deal ends to avoid higher rates. Be mindful of early repayment charges (ERCs) or penalties, and seek expert advice for exceptions like inherited properties.
How Often Should You Remortgage?
Remortgage as your fixed rate ends—typically every 2 to 5 years. This ensures you avoid rolling onto a lender’s standard variable rate, which can be more expensive.
Need Expert Advice?
Unsure if remortgaging is right for you? Contact us today, and our team will help you find the best solution for your goals.
Buy to Let
Understanding Buy to Let Mortgages
What is a Buy to Let Mortgage?
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A Buy to Let mortgage is designed for purchasing a property to rent out. While it shares similarities with a standard mortgage—monthly payments and an upfront deposit—the key difference lies in affordability criteria and specific conditions for letting to third parties.
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Key Considerations for Buy to Let Mortgages
Eligibility Criteria
Lenders assess affordability based on expected rental income. Some also require a minimum personal income and apply stress-tested interest rates to ensure the mortgage remains manageable.
Deposit Requirements
Typically, you’ll need at least a 25% deposit. While some lenders may accept 20% or even 15%, these are less common and come with stricter conditions.
Rental Coverage
Rental income must comfortably cover mortgage payments, often assessed against higher “stress-tested” rates to account for potential market fluctuations.
Fees and Costs
Expect arrangement and valuation fees, with Buy to Let mortgages often incurring slightly higher costs due to the perceived risk.
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Repayment Options
• Repayment Mortgages: Pay off the loan balance over time, ensuring no debt remains.
• Interest-Only Mortgages: Lower monthly payments, but the loan balance remains unless reduced through capital payments or the property sale.
Carefully plan how to repay the balance if choosing an interest-only option.
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Restrictions and Considerations
• Tenant Types and Property Use: Renting to individuals on standard tenancies is widely accepted, but HMOs or specific tenant types may have limited lender options.
• Government Support: There are no specific schemes for Buy to Let investors. However, purchasing via a limited company may offer tax advantages—consult a tax expert before proceeding.
• Risks:
• Property values can fluctuate.
• Rental voids require a financial buffer to cover mortgage payments.
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Building a Portfolio
Adding properties involves assessing overall Loan to Value and rental income. Speak with a broker early to understand how your existing properties may impact future purchases.
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Steps for First-Time Investors
1. Research Thoroughly: Understand property risks, rental demand, and investment potential.
2. Seek Expert Advice: A mortgage broker can guide you on suitable products and help navigate lender requirements.
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Why Work With a Broker?
We provide tailored advice, ensuring your mortgage aligns with your investment goals. Our success depends on yours, so we’re committed to honest, well-researched guidance.
Your Property May Be Repossessed If You Do Not Keep Up Repayments On Your Mortgage.
Most Buy to Let Mortgages Are Not Regulated by the Financial Conduct Authority.