Must I clear my mortgage by a certain age?
Mortgages are usually designed to be repaid no later than the borrowers normal retirement age. That is normally 65 for employed people (male and female) and 70 for self employed. Most lenders will consider a longer term providing the borrower has enough income after retirement.
Can I get a mortgage offer before I find a property?
Yes an agreement in principle can be offered to get the process going but the lender won't make a formal mortgage offer until a valuation has been carried out on the property you wish to buy or re-mortgage.
What is a buy to let?
Buy to let mortgages are designed for people who want to buy a property and let it out to tenants. Buy to let is becoming a popular way for private landlords to invest. They provide income from the tenants' rental payments and growth from any increase in the property value.
What is a flexible mortgage?
Flexible mortgages are loans which allow you to increase or decrease the size of your repayments within certain limits. Being able to do this may help you cope with the changes in your income or spending, and to reduce your outstanding commitments without penalty if you get a bonus.
Many self employed people whose income varies from one month to the next find these products helpful. They can make overpayments when earnings are at the annual peak, and cut their payments when earnings fall again. Some flexible mortgages will allow you to withdraw sums you have overpaid into your mortgage account to help deal with emergencies.
Why do the best discount deals vanish so quickly?
When a lender offers a particular special mortgage, it allocates a certain sum of money to be lent on a particular product. With particularly good deals, this first allocation may be taken up very quickly on a first come first serve basis.
When this happens, lenders generally go back to the money markets to get another batch of funds for further lending. By the time this process is complete, economic or competitive circumstances may have changed enough so it is no longer possible to offer the original product.
Do county court judgments always disqualify me?
If a county court rules against you for defaulting on a debt, that listing is listed on your credit rating. Having such a judgment listed against you may mean it is difficult to obtain a mortgage through most lenders. However there are a number of increasing specialist lenders who will lend to people with a CCJ or other credit problems. Use our fillout forms for a no obligation professional opinion.
Should I rule out redemption penalties?
Most cashback, fixed and capped rate mortgages, and also discount mortgages, have redemption penalties. With fixed rates, capped and discount mortgages these penalties will usually last as long as the special rate but quite often they also apply after the special rate has finished. Mortgages with penalties extending beyond the special period are said to have redemption tail or tie in beyond the special rate. These redemption penalties especially on cash back mortgages could typically last 6 years.
For most people it is best to avoid a mortgage with a redemption tail. This allows you to keep your options open at the end of the special rate period to look for another deal without incurring what might be a very expensive penalty which can equal as much as 5% of the mortgage loan.
Do I always need life insurance?
Some lenders insist you buy life cover. We can provide an independent view along with quotes and discount the commission from leading providers and make the costs cheaper than normally going direct. You may also want to consider taking out critical illness cover, which would pay your mortgage if you suffer an illness, which would affect your earning power, such as a stroke or cancer.
What happens if I lose my job?
If you lose your job and cannot pay your mortgage payments your house could be at risk. It is strongly recommended that you take out a mortgage accident sickness and redundancy policy, in connection with your mortgage, which will pay your loan repayments for up 12 months, while you get back on your feet.
What are the additional costs that I might occur in taking out a mortgage?
The costs related in taking out a mortgage could vary considerably depending on the type of deal selected but here are the usual things to look out for:
- • Valuation Fee (payable on application) can be free depending on the deal.
- • Booking Fee (payable on application) depends on type of deal being selected
- • Arrangement Fee (usually added to the mortgage or payable on completion) depends on type of deal being selected
- • Legal costs, to cover land registry fees and various searches. (Sometimes these costs can be free payable by the lender depending on what deal is selected)
- • Stamp Duty (A Government tax on purchases over £60,000)
- • MIG (Mortgage Indemnity Guarantee Insurance) payable on loans normally over 90% loan to value but can vary depending on the deal
- • Term Assurance (recommended, but not always compulsory)
- • Accident Sickness and Unemployment Insurance (recommended, but not always compulsory)
- • Building Insurance (either from the lender or a third party)
- • Contents Insurance (recommended but not compulsory).
What is MIG and will I have to pay it?
MIG stands for Mortgage Indemnity Guarantee Insurance. It is a one off premium paid usually by the borrower to an insurance company on high loan to value (LTV) mortgages so that in the event of the property being repossessed and sold at a loss, the lender can recoup any losses they incur from the insurance company.
This cost is ether added to the loan or is repaid in monthly installments usually over a 12-month period after completion. The majority of lenders only charge MIG to borrowers where the mortgage is over 90% of the value of the property (LTV 90%). However there are a lot of variations on this, with some lenders not charging at all, even on 100% loans where as others will charge on loans as low as 70% LTV.
Q. Are you Independent?
Q. Do you charge a fee?
A. Depending on the complexity of your personal situation and the size of the mortgage we may charge a fee. We will always tell you exactly how much may be payable before you make any commitment to use our services. If a fee is charged it will be payable after you have received a formal mortgage offer and will be capped at a maximum of £595.
Q. Will you help my friend?
Q. Are you owned by an estate agency or financial institution?
A. No. We are owned by ourselves. We are NOT owned be either an estate agent or a financial institution. We won’t allow third parties to lean on us to influence the advice we give you, our Client.
We think this is really important and we think you should think so too!
Q. Any other tips you can give me about the Property Buying Process?
A. Yes! Here are a few for starters...
- Never ever forget the Estate Agent works for the Property seller (the Vendor) and NOT you.
- Negotiate on price. It’s easy to pay £1000s over the asking price, and spend years repenting…We are happy to help with this.
- Save yourself some potential heartache, work out your budget BEFORE going house shopping.
Q. Who says you are the best mortgage broker in Devon?
A. We do!
Q. Very funny - now what?
A. Get in contact. We’d be delighted to start helping right away. There are endless ways we can assist, everyone’s situation is different and there’s not enough space here to go through everything. Please be assured of our discretion and understanding.