Mortgages

Purchasing your first or next home is usually the biggest financial commitment. I'm here to "hold your hand" and guide you through each step of the mortgage process.

The mortgage process starts with the initial consultation right through to completion and beyond. I liaise with the lender and solicitor on your behalf to provide a stress-free house buying or re-mortgage service.

I will contact you 4 months before any initial rate term ends to allow time to research and implement a new mortgage solution before the initial rate ends. Head over to the 'Re-mortgage and Product Transfer' page to find out more information.

 
Every recommendation is bespoke to you, depending on your needs and circumstances at the time of our meeting. In current challenging times where living costs remain high and the economy remain unstable, it is not always about recommending the lowest interest rate. Instead, looking at other areas of importance, such as additional lender fees, total to pay over an intiial term, ongoing monthly budget and affordability, payment holidays or overpayments. Lenders offer financial incentives, including cash back following completion, a free valuation, penalty free overpayments and portability of the mortgage rate. All these additional features have become more of a priority for clients in challenging economic times.

I am able to research lenders representing the whole of the market to ensure the best mortgage solution is recommended your needs.

Common Mortgage Terminology

Mortgage types

Repayment (or Capital and Interest) mortgage

A mortgage where you repay a bit of capital (the amount you owe) as well as the lender's interest. The benefit of this type of mortgage is at the end of the mortgage term, your balance will be fully repaid if all mortgage payments are made. As you repay a bit of capital and interest each month, the monthly mortgage payment will be higher compared to Interest Only.

Interest Only mortgage

A mortgage where you only repay the lender's interest each month. This means the mortgage balance does not reduce each month. At the end of the mortgage term the outstanding balance needs to be repaid to the lender, so a suitable repayment vehicle is required. The mortgage repayments on Interest Only are lower compared to a Repayment mortgage, but is higher risk to the lender and to you as the borrower.

Interest Rate types

Fixed rate

A fixed interest rate will remain the same for a set period of time, typically, 2, 3 or 5 years (longer fixed terms are now avaliable including 10 years or even lifetime). If the Bank of England changes the base rate during a fixed term, your intererst rate and repayment would not be affected. There is typically a penalty (or an Early Repayment Charge (ERC)) if the mortgage is repaid during an initial fixed term. At the end of the fixed period, if no changes are made to the mortgage account, the interest rate automatically changes to the lender's Standard Variable Rate (SVR) at that time. As a result, the mortgage repayments would adjust accordingly.

Tracker rate 

A tracker interest rate is a variable-style rate type. It will 'track' or ' follow' the Bank of England Base Rate at a set percentage over a specific time, typically 2, 3 or 5 years. The mortgage interest rate and repayment would be impacted by any changes to the Bank of England Base Rate during this initial time. The interest rate and monthly repayment would adjust accordingly by notice from the lender. Tracker rates typically have a 'floor rate' which is a minimum interest rate it will not go below. There is typically a penalty (or an Early Repayment Charge (ERC)) if the mortgage is repaid during an initial tracker term. At the end of the initial rate term, if no changes are made to the mortgage account, the interest rate automatically changes to the lender's Standard Variable Rate (SVR) at that time. As a result, the mortgage repayments would adjust accordingly.

Discounted rate 

Another variable-style interest rate, where the lender offers a discount from their Standard Variable Rate (SVR) for a set time. If changes are made to the lender's Standard Variable Rate during this time, the interest rate and repayment will adjust accordingly. Discounted interest rates have a 'floor interest rate' which is a minimum interest rate it will not go below. At the end of the initial interest rate term, if no changes are made to the mortgage account, the interest rate automatically changes to the lender's Standard Variable Rate (SVR) at that time.

Standard Variable Rate (SVR)

Each lender has their own Standard Variable Rate (SVR) and this is sometimes know as the 'follow-on rate' or 'reversionary rate' after an intial fixed or tracker rate has ended. The SVR is not a rate type you can select with a new mortgage. The Bank of England Base Rate will affect the lender's Standard Variable Rate so mortgage payments can increase or decrease accordingly.

The actual interest rate available will depend upon your circumstances. Please ask for a personalised illustration. 

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. 

Some mortgages, such as commerical Buy-to-Lets, are not regulated by the Financial Conduct Authority.

Information, guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. 

The Financial Ombudsman Service (FOS) is an agency for arbitrating unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on the website, www.financial-ombudsman.org.uk.

Joanna Stickings trading as Certitude Wealth (FCA number 618000) is an appointed representative of Julian Harris Adviser Network Limited, authorised and regulated by the Financial Conduct Authority (FCA number 304155).

Joanna Stickings - Principal and Mortgage and Protection Adviser