Residential mortgages are the largest, and one of the most common, forms of credit in the UK, and make it possible for millions of us to buy our homes. If you are going to buy a new home to live in you will require a residential mortgage. Your monthly mortgage payments will be one of your largest outgoings and one that will last a long time. It is important that you get the right advice to allow you to keep up your future payments. We will give you the advice that you require to ensure that you have the appropriate finance arranged so you can, not only buy your first home, but also make sure it stays yours if the worst was to happen.
Deposit -When choosing a mortgage, you need to have a minimum deposit. There is a help to buy scheme available. Please contact us to discuss this option and eligibility. The more deposit you can put down, the lower the rate of interest you will be charged.
Repay the mortgage - Capital repayment is where your monthly repayments pay back capital as well as the interest charged by the lender. This is a good method and most common because at the end of the mortgage term your mortgage will be paid off as long as you keep up repayments on your mortgage.
Interest only - The other method is interest only, this is where you only pay off the interest to the bank or building society so at the end of your mortgage term, usually 25-30years you would still owe the amount you borrowed as you have only paid back the interest.
Interest Rates - Once you have chosen your repayment method, you need to consider whether you want a fixed or variable rate of interest. A fixed rate means your rate is fixed at that % and your monthly repayments stay at that amount for the period of the fixed rate. The other types of interest rates are discounted or variable rates. This is where the rate could go up or down based on what the Bank of England or bank or building society decides to do. This would mean your monthly repayments could go up or down. A lot of first time buyers chose a fixed rate because they want to budget and know how much they are paying back each month and be certain that the mortgage payments do not increase.
Charges and fees - Lenders charge arrangement fees. The size of these fees depends on the rate of interest; typically the lower the rate of interest charged the higher the fee. There are also other fees to pay when purchasing a property. These include solicitor fees, valuation fees and stamp duty. It is not just the fees the mortgage lender will charge you.
Residential properties Stamp duty charges You’ll pay: (20021/2022)
With access to the whole market and regulated by the Financial Conduct Authority, we will search the whole of the UK mortgage market to source the best deal for you