A Bank or Lender loans money with interest. In return their loan is secured against the value of a person’s property. The details of the loan agreement are registered against the Title of that property- this is known as a mortgage.
There are two main types of mortgages; Fixed Rate Mortgage and Variable Rate Mortgage. A Fixed Rate Mortgage means that your interest amount is fixed for a period of time (usually two to five years) therefore your repayments don’t change.
A variable rate mortgage means the amount of interest you pay can change, and therefore so do your repayments
There are many different types and rates of mortgages so for expert advice you should speak to one of our expert advisers.
We have a comprehensive range of products from across the market; this includes products to help people that may have had issues with credit in the past. Our advisers have great success in helping clients with adverse credit. There are a number of lenders that we work closely with who are more favourable to clients who have previously had trouble sourcing finance. Talk to one of our advisers today for further information.
A repayment mortgage is where you pay the interest as well as the capital borrowed, so your mortgage balance is reduced every time you make a payment. In the early years you will pay mostly the interest and a little towards your capital but in the later years you pay more towards the capital.
An AIP will tell you whether your credit score is good enough for your mortgage application to be accepted by a lender, and the level of borrowing they may be willing to consider. It does not oblige you to go to a particular lender any more and it is not a guarantee that they will provide you with a mortgage offer but it does enable you to get an early indication of what value properties you can be looking at.
The first and most important thing to do is contact your lender as soon as possible. Lenders are required to treat borrowers in this position “sympathetically and positively”.
Some lenders also have telephone helplines and debt counselling facilities which may be able to help you.
Typically the list of fees could include:
Valuation fee – charged by the lender to value the property and generally paid up front with your application
Solicitors fees – charged by the solicitor to complete the conveyancing transactions on the property. Part of this is paid up front when the solicitors are instruction but the remainder is paid upon completion.
Stamp duty land tax – a tax levied by the government on any property purchase in England or Northern Ireland above £500,000 (This stamp duty holiday lasts until 31st March 2021).
Lender arrangement fees – charged by the lender for arranging the loan. This can be added to the loan in most circumstances but will therefore increase the size of the loan.
Booking fee – charged by the lender for booking the funds for your mortgage and typically charged up front with your application
Broker fees – may be charged if you are using a broker as they will look at a wide variety of lenders and do a lot of the work for you. Advisers are qualified and FCA regulated so they provide you with expert advice and can assess a wide variety of lenders.
This is simply swapping the mortgage you have on your current property for another mortgage with a different lender. You may consider this option if your existing mortgage deal has expired and you wanted to see if a more competitive deal was available. You could also consider this if your circumstances have changed and you want to borrow more. There are many reasons why you would remortgage but this does not involve moving home.