Guides

Can I remortgage my home?

Can I remortgage my home if I own it outright? Yes – however the mortgage rates available to you will depend on the loan to value ratio (the percentage of how much you want to borrow against the current property value of your home). Some lenders may not offer you deals from their remortgage range but instead from their purchase range which could workout being a better rate for you. You will need to meet the lender’s criteria and prove that you can afford the monthly repayments of the new mortgage. Can I remortgage my home when I’m over 60 […]

When is the best time to remortgage?

You can remortgage at any time but it is not worth doing just to switch lender. There are certain times which could be more advantageous when it comes to remortgaging. So, when is the best time to remortgage? Low interest rates At the end of your current term When you have built up a certain amount of equity in your property When remortgaging and the costs of doing so still work out less expensive than your current mortgage When is the best time to remortgage? When interest rates are low Mortgage lenders are always providing new deals and mortgage […]

Finding the best buy to let mortgage

The buy-to-let mortgage market is a specialised one. In April 2014 the mortgage industry implemented the changes that came from the Financial Conduct Authority’s (FCA) Mortgage. However, finding the best buy to let mortgage does not need to be a complicated process. So, is a buy to let mortgage cheaper than a standard mortgage? Not always. Most buy-to-let mortgages are interest-only loans and therefore the monthly repayments can be cheaper than a repayment mortgage. However, you’re likely to need a deposit of at least 15% before you’re able to borrow and overall fees tend to be higher. The amount you […]

Niche Mortgage Products

Niche mortgage products are mortgages that are not run-of-the-mill and are modified to take into account special circumstances or properties. Examples of niche mortgage products are: Bad credit – Poor credit Products Bad credit mortgages are for people who do not fit high street lender’s lending criteria. This tends to be due to past credit problems such as missed payments, county court judgements or bankruptcy. Bad credit mortgages tend to have higher interest rates as the borrower is considered a higher risk. If you feel that you have credit issues or have been refused by your high street lender it […]

The buy to let market

The introduction of assured shorthold tenancies in 1997, which made the rights of tenants and landlords more equal, created the buy-to-let market that exists today. Some say buy-to-let has forced up property prices but there is no doubt it has a part to play as first time buyers are getting older and younger people are renting. The whole point of buying-to-let is for its investment potential – both capital growth on the value of the property and the income it generates in rent. Buy-to-let lending is to support investment, not home ownership. It is important to note that lenders carry […]

Choosing the right buy to let property

When choosing a the right buy to let property, your main considerations are different to those you might apply when choosing a house in which to live. For example, you might not choose to live in an area heavily populated by students, but when looking for rental potential that same area may be exactly what you’re looking for. Choosing the right property with the right rental yields is important. This is true not just for your income but also because you want the rent to more than cover the cost of your buy-to-let mortgage. The Association of Residential Letting Agents […]

New Build Mortgages

It is vital to get your timing right when it comes to new build properties and related mortgages as it is unlikely that you will be moving in straight away. You need to bear in mind that you will need a mortgage before you exchange contracts. It may be worth starting to plan your mortgage even before you find a property. The mortgage lender will need to be made aware that it is a new build property as there could be delays between exchanging contracts and completion. Without doing so, your mortgage offer could expire and the whole process will […]

Shared ownership mortgages and schemes

Shared ownership means you will own a certain percentage of your property with the other share owned by a housing association. It will be a leasehold property for this reason. How does shared ownership work? When you first purchase the property, you can choose an initial percentage to buy, typically between 10% and 75%, depending on affordability and the scheme’s options. Under the current model, you may start with a minimum 10% share, with future increments as low as 1% if you wish to gradually increase your ownership. You would mortgage the share you choose to buy while paying rent […]

What is an offset mortgage?

Offset mortgages are linked to saving accounts. You will pay interest on the different between the outstanding mortgage balance and the amount of savings in your account. For example, if you owe £200,000 in total and you have £50,000 in savings, your interest rate for that month will be calculated on £150,000. You are usually able to decide whether to keep the monthly repayments the same each month or to reduce them when the amount of offset savings increase. You are still able to access and use your savings however the more to offset, the faster the mortgage will be […]