Mortgages are simply loans to buy a home. But complications can arise when the caveats attached by mortgage lenders make it more difficult to obtain the funding you require.
These caveats can be
- ‘Income’ related (ie. lower income multiples)
- ‘Property’ Related (types of property banks will not lend on)
- ‘Location’ (geographical areas lenders are uncomfortable with)
The list goes on…
Whole of Market Mortgage Advisers seek to take the requirements of the client, taking into account the lenders attitudes to the Clients individual requirements & circumstances, and obtain the best available product for the client.
Main Types of Residential Mortgage
- Residential Mortgage – a loan used to buy a property.
- Residential remortgage – Loan used to buy out the Mortgage lending you have on your existing property. So one lender buys out the others loan. Usually used to improve rate or to release funds .eg. for home improvement.
- Second Property Mortgage – as the name suggests this is a ‘second property’ mortgage. This is used mainly for purchase of holiday home, or property for dependant family member.
- Buy to Let Mortgage – A mortgage that helps in the purchase of an investment property. This property is let out to persons. The rental achieved provides an income that maintains mortgage payments in the eyes of the mortgage lender. These days, lenders usually require a certain amount of income from person requiring the mortgage to cover any VOID periods where the property is not rented.
Types of Mortgage Rate Available
- Fixed – your mortgage rate is fixed for a defined period.
- Tracker – your mortgage is linked to the Bank of England Base Rate.
- Offset – where you are able to offset the savings in an account linked to your mortgage.
All the above are available over differing time periods, usually from 2 to 5 year terms, although some are for the overall term of the mortgage.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Again, it is important that you seek the advice of an adviser before committing to any particular route Contact an adviser for more information / advice.