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 as this can be an overwhelming process for first-time buyers and to those who have purchased a property before. The mortgage process starts with the initial consultation right through to completion and beyond. I liaise closely with the lender and solicitor on your behalf to provide a stress-free house buying or re-mortgage service.

As well as securing a mortgage for a property purchase, it is important you discuss your re-mortgage options with a mortgage adviser. I contact all my clients 4 months before any initial incentive period ends to allow sufficient time to research and implement a new mortgage solution before the initial term ends. Head over to the 'Re-mortgage and Product Transfer' page to find out more information.

 
Every recommendation is bespoke to the client depending on their needs and circumstances at the time of the meeting. In current challenging times where inflation and living cost continue to rise, it isn't always about recommending the cheapest interest rate - it is vital to discuss additional aspects that affect thew advice given, such as affordability, the initial term of the rate, payment holidays or overpayments; as well as considering any additional costs of the mortgage solution, such as a lender arrangement fee, an application or valuation fee. Lenders are now offering more incentives, including cash back following completion, a free valuation, penalty free overpayments and portability of the mortgage product. All these additional features have been more of a priority, especially since The Pandemic, where clients have a different outlook on finances and mortgage features that are important rather than a low interest rate.

I am able to research lenders representing the whole of the market (first charge mortgages) to ensure the best mortgage solution is recommended for client needs.

Common Mortgage Terminology

Mortgage types

Repayment (or Capital and Interest) mortgage

A home loan where you repay a bit of capital (the amount you borrowed) 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 you maintain repayments throughout the entire mortgage term). As you repay a bit of capital and interest each month, the monthly mortgage payment will be higher than Interest Only.

Interest Only mortgage

A home loan where you repay interest each month and not the initial capital borrowed. The amount initial borrowed or outstanding at the end of the mortgage term needs to be repaid ot the lender. So with an Interest Only mortgage, you need a suitable 'reayment strategy' for repaying the money to the lender. The mortgage repayments for the Interest Only option are lower than a Repayment mortgage, but is higher risk to the lender so has additional criteria to fulfil than a Repayment mortgage.

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 avaliable including 10 years or even lifetime). If the Bank of England change the base rate during a fixed term, the interest rate on the mortgage account and monthly repayment wouldn't be impacted by any changes. 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 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, whether it increases or decreases. The interest rate and monthly repayment would adjust accordingly by notice from the lender. 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 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.

Discounted rate 

A variable-style interest rate, where the lender offers a discount from their lender's Standard Variable Rate (SVR) for a set time, typically a couple of years.If any change is made to the lender's Standard Variable Rate during this time, the interest rate and repayment will adjust accordingly. 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. This isn't a rate type you can select with a new mortgage application. The Bank of England Base Rate will affect the lender's Standard Variable Rate so your mortgage payments can increase or decrease accordingly.

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.

Please note that some mortgages, such as commerical Buy-to-Lets, are not regulated by the Financial Conduct Authority (FCA).

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