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Buying a place to live is one of life’s ‘Big Things”. It’s a major event. For many it’s a rite of passage – one of those things you simply “have to do”.
One thing’s for sure, buying a property is expensive and, whether you’re a first-time buyer, up-sizing, down-sizing or just moving somewhere new, it’s essential that you secure the right mortgage deal for you.
That’s why we think it’s a good idea to take independent mortgage advice: To help you properly understand your options, to help you choose the right deal and, because buying a place rarely runs smoothly, to be the support team that’s always there and always on your side.
In most cases, you only need to have a deposit of 5% of the purchase price.
However, you may find that the more you are able to put down as a deposit, the better the mortgage rates that are on offer.
According to Barclays, as of September 2020, the average deposit was 15%.
The fees you would normally expect to pay are:
Valuation Fee:
This is charged by the lender to value the property and is usually paid up front with your application. There are different types of valuation and these all carry different fees.
Your mortgage adviser will be able to help you decide the type of valuation that’s most suited to your needs.
Legal/Solicitors Fees:
These are charged by your solicitor for the completion of their conveyancing work on the property you want to buy.
You should expect to pay some of this upfront with the remainder payable on completion of your purchase.
Stamp Duty:
This is a tax levied by the government, currently on any property purchase in England or Northern Ireland above £500,000.
This threshold will be reviewed in March 2021.
Arrangement Fees:
These are charged by the lender for arranging your mortgage loan. These can usually be added to the loan but the downside of this is that you’ll be borrowing more.
Booking Fee:
These are charged by the lender for “booking” the funds for your mortgage.
They’re typically charged up front with your application.
Yes. We will charge a small administration fee of £495.
That’s a tricky one. Every mortgage lender takes a slightly different approach.
Every lender will be different in their approach to what you can borrow and unfortunately there is no set calculation.
The actual amount you’re eligible to borrow will be determined by the cost of the property you wish to purchase, the size of deposit you have, your income and affordability (taking into account your monthly financial commitments and any future commitments).
Refer to our Mortgage Calculator to provide you with bespoke mortgage advice based on your needs & circumstances.
In legal terms, an Agreement in Principle is a “stepping stone” to a contract.
It basically means that a lender is willing to lend you the money to buy a house (up to an agreed limit), subject to the property being proved of offer good security against the loan i.e it’s worth the money!
Some borrowers find these agreements useful when house hunting as they show that they’re serious about buying.
If you’re self-employed it can be harder to get a mortgage because you need to be able prove that you have a reliable income.
But it’s not impossible and many self employed people are able to buy the houses they want.
Speak to a financial adviser. They’ll be able to give you the answers you need.
Whilst both of these rates are variable in that they follow the Bank of England base rate, the similarities stop there.
A standard variable rate is the lenders normal mortgage rate and it won’t include any discounts or deals.
Whilst it does follow the Bank of England rate, it will be at a higher rate.
A tracker mortgage is linked to a particular base rate, which it follows.
Two of the most common rates that may be tracked are the Bank of England Base Rate, and LIBOR (London Interbank Offered Rate).
We’ll be honest: It isn’t always easy but we can usually help.
We have access to wide range of products across the market that include those that help people who have had problems with credit in the past. However, you may find that these deals are more expensive than standard deals.
It really is a case of “horses for courses”. What might be right for one may not work for another as different mortgage schemes are deigned for different needs.
When we look to suggest a mortgage deal we work to establish and best understand not only your current circumstances and priorities but also your longer term plans.
We always recommend that you speak to a mortgage adviser early in the process so that you’re able to make good decisions from the outset.
It’ll help you plan better too. We’re here if you want to chat things through!
The average period for repayment of a mortgage is 25 years.
However, some lenders will, depending on your age, allow you to borrow for a much longer term.
No, you don’t need to take out life insurance in order to get a mortgage. However, it might be a good idea.
The main reason people take out life insurance when buying a house is to ensure that their families are able to carry on paying the mortgage in the event of their death.
You’re liable for the full mortgage amount from the moment you exchange contracts so, if you have dependants, it might be a good idea to have a life insurance in force at exchange.
Speak to a financial adviser to find out what’s best for you.
