As a team of highly experienced advisers, we are able to help you source the right mortgage deal, whatever you decide to buy. Based in Burnley, Lancashire, we have access to residential mortgage lenders as well as buy-to-let and commercial lenders to provide you with a wide-ranging service that includes mortgage advice and valuations. Making recommendations on the best solutions for you by using our extensive knowledge of the industry, it is paramount that we understand your full objectives.
There are various types of mortgages that include repayment, interest-only, or a combination of the two. Please note that buy-to-let and commercial mortgages are not regulated by the FCA. You can find some of the common terms used when looking for mortgages below.
Firstly, we take all of the required information to successfully apply for the mortgage, such as your name, date of birth, and your current residential address.
We then talk you through the application process, explaining each step clearly and in basic terms so there isn’t any confusion. Our team can then search for the most suitable mortgage deal available due to our representation of the full market.
Completing our search, we let you know your available options, which are subject to credit searches, and advise you on the best deal for you and your circumstances. At a later date, this can also include advice on income protection and life and critical illness cover.
Once this has been done, you are ready to apply for your new mortgage. From helping to find the right mortgage to assisting you with the application, we ensure that the process runs as smoothly as possible until the mortgage is complete.
As the name suggests, your monthly payment only pays the interest on your mortgage. This means that you are not actually reducing the
loan itself. This is why it is very important for you to arrange some other way to repay the loan at the end of the term, for example, through an investment or savings plan.
If you do choose this option, you need to check that your investment or savings plan grows accordingly, so that at the end of the term, you have enough money to pay off the loan. If your plan does not grow as planned, you will have a shortfall and need to think of ways of making this up.
Every month, your payments to the lender go towards reducing the capital you owe as well as paying the interest that they charge. Therefore, you are paying a part of your mortgage off each month.
This stands for Loan to Value. In simple terms, it is the amount of the mortgage you are taking compared to how much the property is worth. For example, if you were taking out a mortgage of £85,000 on a property worth £100,000, your loan to value would be 85%.
The lender aims to satisfy themselves that the property you are buying or remortgaging is suitable security, as they are lending the money against the
property. If you opt for a basic valuation, they assess the property value only, which is mainly for the lender’s purposes.
Most lenders also offer a HomeBuyer report, which is essentially a step up from the basic valuation. This gives you a condition report with more information regarding the property you are buying. Some lenders also offer a full buildings survey, which offers you more details than the HomeBuyer report.
A fee of a maximum of £500 or 1% of the loan amount, if greater, is payable on completion. Typically, this will be £295.
Please be aware that your home may be repossessed if you do not keep up with repayments on your mortgage.