Personal Focused & Honest Advice
Personal Focused & Honest Advice
Specialist lending plays its role where a borrower does not meet the standard lending criteria. Specialist lender can accept applications from such borrower. The risk factor is reflected in higher interest rate. However, due to increased competition, the difference of interest rates is reducing.
The vendor means the seller of the property.
A credit report is a detailed view of your credit performance over the period. It shows your active accounts, outstanding credit balances, searches on your report, on-time payment, late payments, defaults and CCJs. The company which keeps and maintains this report is called the credit referencing agency. A credit score is a numerical snapshot of your credit performance. The credit score is affected by defaults, the number of credit searches, amount of credit held and other factors.
Equity is the value of your investment in the property. If a property is valued at £100,000 and you have a mortgage of £75,000 on it, the equity in the property will be £25,000.
Loan to Value or LTV is the term used to calculate the amount of loan as a percentage of the value of the property. It is the maximum amount a lender will lend. LTV also affects the interest rate changed on loan. The high the LTV, the higher will be the interest rate. For example – if the value of a property is £100,000 and the lender is willing to lend £90,000 on that property. The LTV will be 90%.
It means the total period during which the loan, including interest on it, is to be repaid in full. The mortgage term is dependent on the preference of the borrower, their affordability, intended retirement age and lender’s criteria.
Affordability is the test that every lender applies to decide whether to lend and how much to lend. The test takes into consideration the income, expenses, existing credit commitments and amount of deposit available.
APR or annual percentage rate is used for personal loans and credit contracts other than a mortgage. APR includes the standard fees and interest rate you pay on loan. It is helpful when comparing loans to find out which one is best. APRC or annual percentage rate of charge is used for secured loans and mortgages. APRC includes all the charges ( fees and other costs) and calculated on the basis that the mortgage is kept for the full duration without a change. APRC is used to compare mortgage and secured lending products.
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.