Ascot Mortgage Expert
Securing a mortgage, a loan taken out to buy property or house, can feel like navigating a complex maze. With the mortgage market in the UK being so complex and fast changing, it is essential to make an informed decision when picking the right mortgage for you. This article aims to highlight the mortgage pathway, providing you with comprehensive insights and guidance.
Identifying the right mortgage deal for your needs is vital. Let’s explore a few types:
Remortgaging allows you to switch your current mortgage to a new deal with your existing lender or a different one. If your fixed-rate term is nearing its end or if interest rates have dipped since your mortgage initiation, remortgaging could save you money. Our Ascot Mortgages team is well-versed in facilitating remortgages, aiding in securing the best deals for residential properties.
First-time buyer mortgages are tailored for individuals taking their first steps into property purchase. Factors such as income, credit score, and deposit size are considered by the lender.
Buy-to-let mortgages cater to those purchasing a property for investment purposes. Typically, these are interest-only loans, where only the interest, not the loan itself, is repaid each month. Ascot Mortgages is a leading mortgage broker in securing buy-to-let mortgages, helping investors to achieve their goals of either increased income or capital growth for their future pension.
Ascot Mortgage Expert
What Our Expert Says...
Mortgages help many people buy their dream homes. However, choosing the right mortgage can be tricky due to the many options available. Whether you’re buying for the first time or considering a new mortgage, good advice is key. Always remember, mortgages are long-term deals, so make sure you choose wisely. I am here to help guide you to the right decision. Don’t hesitate to seek expert advice when you need it.
The world of mortgages offer many different options. Here are some commonly chosen types:
A fixed-rate mortgage provides the security of a fixed rate of interest for a predetermined period, ensuring consistent monthly repayments.
A variable rate mortgage, conversely, has a fluctuating interest rate, meaning monthly payments could rise or fall.
Discount mortgages offer a reduction on the lender’s standard variable rate (SVR) for a certain duration.
The SVR is a type of mortgage interest rate that you are most likely to switch to after an initial fixed, tracker or discounted deal expires.
An offset mortgage ties your mortgage to your savings account. The savings are ‘offset’ against the mortgage debt, and you only pay interest on the balance between the two.
An interest-only mortgage involves paying just the interest on the loan and nothing off the capital – the amount you borrowed.
Your income, outgoings, credit score and deposit size all influence the mortgage loan you can afford. Lenders use these factors to assess lending risk.
A mortgage calculator can be invaluable in determining how much you could potentially borrow and what your monthly repayments would be.
Mortgage calculators provide a snapshot of how much you might be able to borrow, and what your repayments could look like. They consider the loan amount, the interest rate, and the loan term.
Several schemes aim to support first-time buyers stepping onto the property ladder:
This scheme sees the government providing lenders the guarantee required to offer mortgages covering up to 95% of the purchase price.
Under the Help to Buy Equity Loan, the government lends you up to 20% of the cost of your newly built home. This is combined with a 5% deposit and a 75% mortgage to cover the remaining cost.
Shared Ownership enables you to buy a share of your home (typically between 25% and 75%) and pay rent on the remaining share.
In the UK, first-time buyers can benefit from stamp duty relief, meaning no stamp duty is paid on properties up to a certain value.
Choosing a mortgage is a significant financial decision, and getting the best advice is critical. Always consider your personal circumstances, do your research, and seek professional advice if required. As a family-run business with over 40 years’ experience in the financial services industry, Ascot Mortgages is dedicated to delivering the best mortgage deals while maintaining excellent customer service.
Taking that leap to secure a mortgage can indeed seem like a daunting process, especially for first-time buyers. The vast number of choices and considerations can easily leave one feeling somewhat lost. That’s why consulting with a seasoned professional can dramatically increase your chances of success. It can bring clarity to those seemingly convoluted mortgage-related complexities, preventing you from falling prey to any potential pitfalls borne out of a lack of understanding.
Now’s the time to align yourself with a trusted partner to secure the most advantageous mortgage deal for a house. With Ascot Mortgages, you’re not just comparing mortgages; you’re elevating the entire process. So stay connected and discover the real opportunities that await you within the UK’s mortgage landscape. Don’t just secure a mortgage; master it with Ascot Mortgages and make your dream house a reality.
A mortgage is a loan used to buy property or land. You repay the loan, along with interest, over a set term. The property is used as security until the loan is fully repaid.
The LTV ratio is the amount of the loan compared to the value of the property. For example, an 80% LTV means you borrow 80% of the property’s value. The rest is covered by your deposit.
This depends on your income, outgoings, and personal circumstances. A general rule is that your mortgage payments should not exceed 28-35% of your gross income. When you’re ready, we can help you work out what you can afford.
This is the cost of borrowing money for your mortgage, expressed as a percentage of the loan. It impacts your monthly repayments and the total amount you’ll repay.
Consider the type of mortgage, its term, repayment structure, fees, and the lender’s customer service.
A mortgage in principle is a conditional offer made by a mortgage lender that they would ‘in principle’ give you this amount of money towards purchasing a property.
APRC stands for Annual Percentage Rate of Charge. It includes both the mortgage interest rate and any associated costs for securing the mortgage.
Common fees include booking fees, arrangement fees, valuation fees, and legal fees.
You’ll usually need buildings insurance, and you may want to consider life insurance, income protection, and critical illness cover.
Improving your credit score, saving a larger deposit, reducing debts, and ensuring you’re on the electoral roll can all help.
Typically, you’ll need at least 5-10% of the property’s value, although a larger deposit could secure better rates.