Latest residential mortgage rates:

There may be a fee for mortgage advice and the actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Generally, the greater the risk to the lender the higher the interest rate and setting up fees.

Mortgage scenarios we help with include:

  • Main residential applications (including assistance with government schemes such as Help to Buy and Shared ownership),

  • Buy to let including (HMO) house multiple occupants,

  • Let to buy, second home, further advance/ second charge, re-finance, self-build stage payments, bridging loan, commercial equity release, etc…

    Your home is at risk if you do not maintain payments to a loan secured on the property.

    For equity release, always ask for a personal illustration.

Ensure you secure the lenders pre-approval and request a ’permission to proceed’ before paying fees. This helps save time, money and inconvenience…

Most residential mortgage lenders offer an initial incentive such as free valuation and low setting up fees plus a reduced interest rate or fixed rate for a specific length of time (say 2, 3 or 5 years). The size of the initial down payment (deposit) often reflects the interest rate charged and monthly mortgage payment. So generally the larger the initial deposit the lower the interest rate.

Other major factors a lender will consider include the repayment term, income and commitments; some lenders will take all or a percentage of income from overtime, second and third jobs, state benefits, investment income and maintenance. Credit commitments and essential expenditure such as utility bills reduce affordability and these are deducted prior to the maximum loan calculation. Other expenses considered by lenders include: council tax payments, pensions, dependants and essential travel all reduce the maximum loan available.

Self-employed and shareholders of limited companies

For the self employed and shareholders of limited companies, a few lenders will consider net profits or operating profits plus salary when considering affordability – if the business has been established long enough and a few lenders can sometimes work off accountant’s projections

Poor Credit Rating

A poor credit rating due to missed payments on a credit card or loan can often lead to a higher interest rate being charged or the application being declined. But some lenders will consider bankruptcies and repossessions however, once again the interest rate charged reflects the risk the lender is taking on…

Equity Release and Lifetime Mortgages

Equity release and lifetime mortgages can enable a customer to remain in their property releasing equity to pay off a first charge mortgage or make essential home improvements. Some schemes allow payments to be made rather than interest rolled up as a charge against the property. We recommend a customer always asks for a personal illustration reflecting their needs and seeks independent legal advice. This is a lifetime mortgage, to understand the features and risks, ask for a personalised illustration. Equity Release may impact the size of your estate, and could also affect your entitlement to current and future means-tested benefits.

To understand the features and risks, ask for a personalised illustration.

Bridging Loans

Typical bridging loan examples include properties purchased at auction and renovated in a short period to a suitable standard to be converted to a first charge mortgage with a high street lender; or a customer looking to secure another property with a definite exit strategy – such as the sale of another property within a specific timeline (usually 12 months). Interest is rolled up (no monthly interest payments) but the charge against the property increase the longer the charge remains outstanding. Valuation and arrangement fees are charged and you will also pay solicitor fees. The loan can be repaid at any time (subject to notice given to the lender).

Second Charges and Further Advances

If you already own your home we’ll help you research a further advance with your current lender or a second charge through an alternative so you could retain you existing low interest rate first charge mortgage or avoid paying early repayment charges. Second charges often have higher interest rates than first charges but can be a worthwhile alternative to paying early repayment charges on your existing mortgage. Second charges may be available at higher income multiples.

Rest assured, our style is to offer reliable mortgage advice appropriate to the individual circumstances.

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