Moving Home? Need A Mortgage?
If you’re considering moving home but you’re not sure what to do about your existing mortgage, then we are here to help you. Even though you aren’t aware of the options available to you, rest assured, you do have them and we can help you find the most suitable home mover mortgage for you.
Finding Your Ideal Mortgage
Obtaining a mortgage is viewed as one of the most difficult financial processes we can go through in life, but it doesn’t have to be this way. A mortgage is also considered the biggest single outgoing a household will have each month. When it’s such an important part of your life, it’s best not to make any rash decisions when it comes to choosing your mortgage, as you could regret it if you choose in haste.
We are on-hand to help find you your ideal mortgage. We understand that most people will need to borrow money in order to buy a home, but it can be difficult to establish where to start with the number of different types of mortgages that are available on the market.
However, we can help make the process of obtaining a home mover mortgage that little bit less overwhelming, as we can help you find the right mortgage tailored to your individual circumstances.
What Options Do I Have?
Depending on whether you are buying your first home, you want to remortgage, or if you want a fix-rate, variable or buy-to-let mortgage, there are plenty of different options to choose from.
If you’re unsure, all you need to do is give us a call and we go through your options with you to identify the best type of mortgage for your circumstances.
In order to help you decide, here are some of the main different types of mortgages available:
This type of mortgage is pretty self-explanatory. A fixed-rate mortgage has an interest rate that stays the same for a set period of the term, for example, three to five years. It is not unheard of for the lender to fix the rate for 10 years or even longer.
The attraction of a fixed-rate mortgage is that your payments stay the same throughout, and you don’t need to worry about interest rates rising. For example, if the Bank of England’s base rate goes up and lenders increase their standard variable rate (SVR) loans, you will continue to pay the same rate.
The downside to fixed-rate mortgages is that if the interest rate reduces, you won’t be able to benefit from it. You will also need to pay a fee or penalty if you want to get out of the deal before the end of the term.
An offset mortgage means you go without earning interest on your savings in order to save paying interest on your mortgage. Offset mortgages are often a worthwhile investment as mortgage interest is usually much higher than any interest you will make on savings. This type of mortgage is becoming more and more popular as Independent Savings Accounts (ISAs) with rates that can compete with offsetting are hard to find.
With interest-only mortgages, you only pay the interest each month, and the amount you initially borrowed remains the same, which makes them the least popular type of mortgage.
This means that when you come to the end of the term, or if you sell the property, you will still owe the lender the entire amount you borrowed. Unlike a repayment mortgage where you would own the property at the end of the term, you don’t own anything with an interest-only mortgage, as the bank owns your home.
First-time Buyer Mortgages
If you are a first-time buyer, you’ll be pleased to hear that there are mortgages available that are specifically tailored to first-time buyers and sometimes they can include incentives such as cashback, low fees or even contributions to legal fees.
There are a few schemes to help you purchase your first home too. If you are considering a new-build, you might find it beneficial to look into the Help-to-Buy scheme, which is backed by the government. As long as you can find 5% of the deposit yourself, they will loan you up to 20% of the deposit. Which means you could have a 25% deposit towards your new home, so lenders will give you a lower interest rate.
How Much Deposit Will I Need?
With general day-to-day living and rising house prices, saving for a deposit can be difficult for many to achieve. However, there are some lenders out there that will lend up to 95% of the overall price, meaning you only need to raise 5% of the asking price as a deposit.
Occasionally some lenders will offer 100% mortgages, but these usually attract a high-interest rate.
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