Mortgages - Which Mortgage is Right for Me?
With lenders becoming more strict about who they will lend to and under what terms, it’s no surprise that borrowers are consulting mortgage brokers.
Whether you are a first-time buyer, remortgaging or moving home, a mortgage broker can assist you in finding the right deal for you.
Your enquiry will be passed onto a FCA regulated mortgage broker who can offer you free independent advice and find you the best deal on the market. Simply complete the short form below and our expert will call you to discuss your requirements.
Taking out a mortgage is probably the biggest financial commitment you are ever likely to make. There are many different types of mortgages and remortgages available in the UK, with as many different repayment options.
A mortgage is classed as a secured loan, which means that should you fail to make the repayments your home could be repossessed by the lender. To avoid this be realistic on how much you can afford to repay back each month.
How much can I borrow?
Mortgage lenders will allow you to borrow up to 3-4 times your annual salary or 2.5 times joint salary, however take into account your financial commitments now and in the near future eg starting a family.
What is my Loan to Value?
Calculate your loan to value (LTV) as this will determine how much you can borrow and at what rate. Loan to value can be calculated by comparing how much you need to borrow against the market value of the property. The lower the LTV the better the deals available to you.
What type of mortgage should I choose?
Choose the right type of mortgage for your circumstances. There are two main types of mortgages, repayment and interest only. The repayment mortgage being the most popular repays the initial mortgage amount plus the interest, therefore reducing your outstanding debt each month.
The interest only mortgage however only repays the interest on the amount borrowed. To pay off the initial sum borrowed you will need to have a separate investment plan.
How many years should I pay the mortgage over?
Consider how many years you want to pay your mortgage over. The longer the term the more you pay.
It’s a fine balance between paying off your mortgage as soon as possible and what you can realistically afford and have a quality of life.
And finally you should compare mortgage deals from different lenders.