Guides

Help to Buy Schemes

There are various initiatives, detailed below, which form the government’s “Help to Buy” scheme. The aim of which is to aid people with the build-up of deposit in order to buy a new home. Help to Buy ISA The Help to Buy Individual Savings Account(ISA) scheme involves receiving a government bonus on top of your own savings. This account is offered from a variety of banks and building societies across the UK to first time buyers on their first home A starting deposit of anywhere up to £1,200 can be made followed by a maximum monthly amount of £200. […]

What is a tracker mortgage?

A tracker mortgage is dependent on the Bank of England Base Rate, meaning when this fluctuates, your monthly repayments will also change accordingly. The interest payable on a tracker mortgage is usually a certain margin above the Bank of England Base Rate – for example, the Base Rate plus 1.00%, with some trackers having a “floor” below which the rate will not fall. Lifetime trackers track the Base Rate for the full life of the mortgage. They tend to be at a higher rate than other trackers, but due to not needing to switch lenders or products every few years, […]

What information do I need for my life insurance application?

In order for us to submit your life insurance application we will need the following information from you: Your height and weight GP details – including name and address Your medical history including details of any current or previous illnesses Details of any current medication or previous medication taken in the last 5 years Details of any family history of serious illnesses Your existing policy information – including provider, sum assured, term of the policy and policy number. Bank Account Details – for the account you wish the monthly premiums to be taken from. Once your application has been submitted […]

What is a variable rate mortgage?

The interest on a variable rate rises and falls as changes in interest rates occur. There are different kinds of variable rates offered by lenders including a standard variable rate, a tracker rate or a discounted rate mortgage. Your monthly mortgage repayments are most likely to fluctuate whilst being on a variable rate unlike those on a fixed rate for example meaning your mortgage repayments could be different each month. The rate you will pay is entirely dependent on your mortgage lender, with changes to it not necessarily being affected by the Bank of England Base Rate. Standard variable rate […]

Accident, Sickness and Unemployment cover

This is a yearly renewable cover that provides payment for a short period of time if accident, sickness or unemployment occurs. Often there is a deferred period after the point of claim (e.g. six weeks), and it is after this point that benefits are then paid. Benefits are normally only paid for periods of up to two years. Be aware that premiums will vary at renewal each year. ‘This Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against the loss of income. For impartial information about insurance, please […]

Annual Percentage Rate of charge (APR)

This is the interest rate that takes into account the total charge for lending you the money each year. It includes the added costs of the loan (such as arrangement fees), as well as factoring in the frequency that interest is charged (daily, monthly, quarterly or annually). This results in a figure that shows the equivalent rate on an annual basis. While this is a good initial benchmark for comparison, it should not be looked at in isolation as the only way to choose your mortgage.

Builders incentives – new-build ‘off plan’ offers

These may be attractive to the price you pay for the property. Be aware that some lenders may restrict the amount they lend in relation to these types of contracts. This helps protect them against market sentiment and may mean you have to invest more of your own deposit.

Buildings insurance

This is insurance that protects the property, fixtures and fittings. It can protect against fire, flood, subsidence and accidental damage. A key point to note is that the amount of cover chosen is to cover the rebuilding cost of the property, which is often different to its market value. The amount you have to pay towards any claim is called an excess, and can vary depending on what is being covered (e.g. subsidence, fire).

Completion

The stage in England and Wales where the property ownership finally changes for a purchase. Your conveyancer arranges for your deposit and lender monies to be paid to the person selling and completes the legal documentation.