These days, there’s a lot to think about when you take out a mortgage. It’s usually the biggest financial commitment you will take on, so getting advice really helps. There are many different types of mortgage available, from standard repayment mortgages to mortgages which come with added extras like cash back or free valuations, or mortgages that cap the rate of interest you will be charged. The choice can seem bewildering without professional help.
How much can I borrow?
This is the big question. The answer to this used to be a multiple of your earnings based on your salary, or joint salaries if you were a couple buying together.
However, after the financial crisis, the rules were tightened and mortgage lenders were required under the government’s Mortgage Market Review to use a different approach. Now, banks and building societies have to look very carefully at a potential borrower’s financial position and ask some searching questions. They need to satisfy themselves that borrowers can comfortably afford their repayments and won’t be putting themselves under financial strain now or in the future by taking on a mortgage commitment.
Approaching the right lender
Professional advice can be a tremendous help at this point. Whilst lenders are all bound by the same rules, there are variations in the way they interpret them. We know how the major lenders operate, and can help you present your application in the best light to the most appropriate lender, saving you time and stress.
Deposits – the bigger the better
In the current market, the more you can put down, the better the deal you are likely to be offered. Many lenders are prepared to lend purchasers up to 95 per cent of the property price, with the borrower putting in the remaining 5 per cent as a deposit. However, better deals and rates are available to those who can put down, say, 20 per cent, or even more.
If you’re thinking about buying a property, it pays to talk to us as soon as possible – we can make sure you get the right type of mortgage deal for your financial circumstances.
Mortgages matched to your needs
There are many types of mortgages currently available in the marketplace – here are just a few we regularly consider for our clients:
- Fixed rate
- Capped rate
- Low start
- Variable rate
- Commercial mortgages – by referral only
We regularly help first-time buyers, second steppers, would-be landlords, and those looking to remortgage to find the right type of deal that’s tailored to their particular circumstances. So, whatever type of mortgage finance you’re looking for, we can help.