Over the last 12 months we have helped over 1000 clients find the right mortgage to meet their needs.
A mortgage is a loan that you take out to buy property, this is in effect a loan and the loan is secured against the value of your property until the loan is repaid. Most mortgages will run for 25 years but the term can be shorter or longer dependent on your circumstances. If you are unable to keep up with your repayments the lender can repossess your property so it is essential that you keep up your repayments.
Once you have found the property you wish to buy or have a remortgage on, our mortgage brokers will help you find the right mortgage for you and the best possible rate based on your circumstances. They will help you through the mortgage application from start to finish explaining to you each step along the way. Once you have found the right mortgage and your application has been accepted the lender will provide you with your loan to buy or remortgage your property. The money you borrow is called the capital and the lender then charges you interest on it until it is repaid. You will repay this loan via monthly payments which are referred to as mortgage payments. The type of mortgage you are able to apply for will depend on whether you want to repay interest only or interest and capital.
Our mortgage brokers will be able to assist you with working out what you can afford to borrow and mortgage lenders will want to see proof that you can afford the monthly payments on your new mortgage. We will use our mortgage calculators to analyse your income against your outgoings and the deposit you have available to you to determine the size of mortgage you can afford.
When purchasing a property you will need to pay a deposit and this is offset against the cost of the property that you are buying. What is important to remember is that the more deposit you have, the lower your interest rate could potentially be. When talking about mortgages you may have heard the term “Loan to Value” or LTV, this refers to the amount of your home that you own outright (based on the deposit amount you put down) compared to the amount that is secured against the property with your mortgage.
For example, with a £10,000 deposit on a £100,000 property your deposit is 10% of the value of the property and therefore your LTV is the remaining 90%. So your LTV is 90%.
THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME, YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.