Mortgages

 

A mortgage is a type of loan secured on a property, provided by a bank or building society, having assessed the suitability and affordability of a client i.e. income, expenditure and credit profile.

 

There are two ways to repay a mortgage:

 

Capital & Interest: Monthly repayments where you pay interest and part of the capital.

 

Interest-Only: Monthly repayments where you only pay the interest on the money you have borrowed. The remaining balance should be repaid in full at the end of the mortage term.

 

 

Mortgage Product Options

 

There are various product types available:

 

• Discounted rate or tracker mortgage

• Fixed-rate or capped rate

• Offset mortgage, current account mortgage or a flexible mortgage

 

Deciding the most suitable option for you depends upon your needs and preferences.

 

Terms

 

There are two terms to discuss. By understanding your needs and preferences, we will recommend an appropriate mortgage term and product that best fits your plans today as well in the future.

 

 

Associated Fees

 

• Stamp Duty Land Tax (SDLT) – for further guidance visit https://www.gov.uk/stamp-duty-land-tax

• Additional Stamp Duty Land Tax (SDLT) – may apply when purchasing a second property. For further guidance see above link.

• Lender Arrangement Fee – a charge for processing the mortgage application. This fee can be paid upfront or added to the loan.

• Valuation – There are three types of valuations 1) Basic mortgage purpose only, 2) Homebuyers Report & 3) Full Structural.  

• Solicitor Fee – an undertaking of the conveyancing works to ensure you are purchasing a good property title. The nominated solicitor will act on behalf of both the client and the lender.

• Early Repayment Charge (ERC) -  A mortgage lender will apply an Early Repayment Charge (ERC), in the event you exceed the mortgage overpayment threshold or early closure of the mortgage. 

• Estate Agent Fees – Where you are using an estate agent to sell a property.

• Other – building and contents insurance, service charge, ground rent, refurbishment works prior to moving into the property and removal of vehicle cost.