Personal Focused & Honest Advice
Personal Focused & Honest Advice
There is no simple answer to this. Your current circumstances, priorities, plans, affordability, lender criteria and costs of lending all are to be taking into account to decide which solution is best for you. We, your mortgage advisors, are here to help you in determining the best solution for you.
Yes, you can repay your mortgage loan at any time. However, if you have a fixed or a special deal, the lender may charge you an Early Repayment Charge. Your mortgage offer letter has details of any such charge.
Mortgage term depends on your affordability. However, in most situations, your mortgage should have been paid before your intended retirement age. We discuss this with you during our fact-finding meeting.
If you have a low credit score, you may still qualify for a mortgage loan. Some lenders are willing to work with borrowers who have financial challenges. We can assist you in finding a suitable lender for your needs. Please contact us to explore your options. However, you should be aware that the interest rate may be higher for borrowers with poor credit history than for those with good credit history.
When buying a house, there will be multiple set of costs involved. In a typical house purchase following costs may be incurred; Conveyancing Cost – payable to solicitors for legal work and property searches. Stamp Duty Land Tax – payable to HMRC. Your solicitors will calculate this, collect from you and pay to HMRC on your behalf. There are some exemptions for first time buyers. Survey Fee – Payable to the lender to carry out the property valuation survey. Mortgage Arrangement fee – payable to the lender. Some lenders give the option to add the arrangement fee in the loan amount. Mortgage broker fee – Payable to your mortgage advisor.
Although the valuation survey is carried out for the benefit of the lender, however, it is the borrower who pays the fee. The fee usually is non-refundable. To attract buyers, some lender will offer a free survey.
When deciding on lending, the lenders want to know whether the property on which they are lending is adequate security. To make an informed decision, the lender will appoint a qualified surveyor who will visit the property and submit their report on the value and suitability of the property.
A decision in principle is simply a provisional agreement from the lender which indicates that the lender may be willing to lend the specified amount subject to full application and meet underwriting requirements. A DIP is useful when making an offer on a property. It assures the estate agents that the buyer is keen in buying the property on which they are making an offer.
There are many types of mortgages; however, two of the main types are; Fixed-rate mortgages – The interest rate is fixed for a certain period. Therefore, the monthly payment will remain fixed throughout the specified period. Typically rates are fixed for 2, 3 or 5 years. Some lenders offer up to 10 years of fixed-rate deals. Variable-rate mortgages – In this type of deal, the rate is variable, so is the monthly payment. The interest rate can change at any time and this will result in a change in monthly payments.
Remortgage is switching the existing lender with a different one. It could be for a variety of reasons which may include finding a better deal, increasing borrowing limits, reducing cost, change in the circumstances, change in lending criteria of the existing lender and better terms.