Mortgage Types

First Time Buyer Mortgages

Buying a house is probably the most important purchase you will ever make. It can be a very stressful experience but I will support and advise you through the whole process. I will guide you through all the different types of mortgages available and find you the very best deal for your circumstances.

Mortgage deals are changing all the time. Whilst there are some that require as little as a 5% deposit, generally more choices become available to you the larger the deposit you can provide.

I use a mortgage sourcing system that is updated daily and this means that I am able to research the whole of the mortgage market place. This means that I will be doing the shopping around on your behalf. Together we will complete a budget planner to ensure that you will be fully aware of all the costs involved. We can consider both repayment and interest-only mortgages to determine which is the best for your circumstances.

Home Mover Mortgages

Considering moving home? The first thing you need to do is to find out how much you can borrow, and then find the best mortgage deal and rate to suit your circumstances.

Deals and lending criteria change all the time. The deal chosen will be specific to your circumstances and the best for you at the time.

Buy To Let Mortgages

This type of transaction requires careful thought before entering into as there are some risks as well as rewards.

A Buy To Let mortgage differs from a residential mortgage in 3 primary ways:

• Rent Potential – the decision to lend is sometimes based on both the earnings of the applicant and the likely rent that will be achieved. Due to the nature of the transaction some lenders insist on a minimum income. Other lenders however will only look at the rent achievable. As a general rule this will need to be 125% of the mortgage payment made to the lender. Many mortgages are conducted on an interest only basis due to this requirement.

• Interest Rate – Due to the nature of the transaction, the rates charged are slightly higher than residential mortgage rates.

• Larger Deposit – typically a minimum of 20% or 25% of the property’s value is required as a deposit.

Additional costs to consider

Insurance – letting agents fees – appliance servicing – routine maintenance – ongoing legal costs – furnishings (if applicable)

All the above will have an impact on whether the purchase will be viable for you and need to be considered carefully before proceeding.

*Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority

Remortgaging

There are many reasons why people consider remortgaging. It may be that their current deal is about to expire, they may wish to borrow for home improvements or debt consolidation or they may merely be seeking a better rate.

Whatever the reason I will always initially consider any deals offered by your current lender, as this may be your best course of action. However, some lenders can be restrictive if you need additional borrowing, or not as competitive with rates compared to a new lender.  I can research the whole market and advise you of the best course of action.

I will always consider the following.

• There may be fees with a new lender and these will need to be taken into account when comparing deals.

• If you are consolidating borrowing, whilst this may reduce your monthly repayments, it could result in you paying more over the new term of the loan.

• Sometimes doing nothing can be your best option. I will be able to advise you if this is the case.

• Any potential penalties from changing from your current lender to a new one. 

*You may have to pay an early repayment charge to your existing lender if you remortgage.

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

Andrew Harrod Financial Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered Office: 12 Dunholme Road, Gainsborough, Lincolnshire DN21 1XJ. Registered Company Number: 8109370. Registered in England & Wales

“Free initial consultation”.  A typical fee is £540 payable as follows; £145 on application followed by £395 on approval – this fee may be reduced subject to the terms of the fee waiver agreement.