Mortgage Information

 

Buying your first property can seem complicated but if you understand the process you can save time and money. Here is a brief guide to the process of buying your new home.

As mortgage products become ever more complex and competitive, the market of lenders grows. This is good for borrowers as it increases competition for their business

LIBOR stands for London Interbank Offered Rate. It is the level of interest that banks use when lending to each other and LIBOR is set every day in London by the British Bankers Association.

An Income Multiplier is the number by which a mortgage lender will multiply your sole or joint incomes when calculating the maximum amount they are prepared to lend to you.

More of us are buying their first property with one or more friends as a first step onto the property ladder.

Here are a few tips to consider when buying a home;

A Guarantor Mortgage allows a third party (maybe your parents) to underwrite your mortgage repayments and obligations. But why would you want that?

Once the lender has evaluated all the information you provide, they may make a mortgage offer which is, at this stage, subject to status.

The Financial Ombudsman is an organization set up by Parliament. It was created to help ‘sort out’ problems and disputes that might arise when using financial services in the UK.

Almost all, if not all, lenders will either prohibit you from letting your home to a third party or they’ll set restrictions and have formal requirements around notification, etc.

The Mortgage lender will require an independent valuation of the property to make a decision to lend.

The simple answer is yes - you can borrow money for a mortgage deposit. But there are strict rules and good and bad ways to do it. Let’s take a look.

An Early Repayment Charge or ERC is a charge made by a mortgage lender when you repay all or part of the loan amount sooner than the agreed redemption date.

When considering mortgage alternatives, most people will simply look at the interest rate at the start of the loan and make a decision based on the lowest interest rate. This is understandable - but a big mistake.

The UK Government defines the FCA or Financial Conduct Authority as being the body responsible for...

The RICS stands for the Royal Institution of Chartered Surveyors. Qualified members of the RICS may use the title ‘Chartered Surveyor’ and use the designation MRICS, or FRICS if they have progressed to become a Fellow.

Most of us need a mortgage to buy our next home so how much you can realistically expect to be able to borrow is critical to the process.

When buying or selling your home, understanding the difference between exchange of contracts and completion will help you to control the process, manage expectations and reduce stress.

A Mortgage Agreement in Principal usually last between 60 days and 90 days so it’s important that you don’t apply too soon - or too late.

Due to the more complex nature of the self employed mortgage applicants, different mortgage lenders apply different criteria to assessing their income.

These figures should encourage first-time buyers looking to obtain a mortgage offer, although it is also worth noting that these figures refer to applications made through an independent intermediary, such as Mortgage Required.

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Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be no fee for Mortgage Advice. There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, but we estimate it to be £399.

Mortgage Required Ltd, Finance House, 5 Bath Road, Maidenhead, SL6 4AQ is authorised and regulated by the Financial Conduct Authority reference 573718 at www.fca.org.uk.

The Financial Ombudsman Service is an agency for arbitrating on unresolved complaints between regulated firms and their clients. More detail can be found on their website: www.financial-ombudsman.org.uk

Call: 01628 507477