Mortgage Information

 

When buying your home one of the critical points referred to by everyone is ‘exchange of contracts’. But what is it and why is it important?

The scheme works on the basis that rather than having to put together a deposit and mortgage to purchase the whole of the property, a buyer can now purchase part of the property with the other 25 - 75% of the home being owned by a third party under the terms of this scheme.

The Insurance giant Prudential recently carried out research which found that 25% of 2017s retirees will retire in debt. This is at its highest level for seven years.

Since the introduction of mortgage affordability tests the lender will ask detailed questions about the your income, employment status, age, personal circumstances, other debts and liabilities and lifestyle.

More and more lenders are agreeing to mortgages where customers have had blips on their credit profile. The main questions are, How big was the blip? How many blips do you have? and How long ago was the blip?!

Maidenhead Council tax is a local tax to help pay for local services. These services include police and fire services, upkeep of local roads and street lighting, drainage, etc

Most lenders contribute to the re-mortgaging costs and the process is really not as complicated as people think –as long as you have a good broker acting for you.

Part of the review requires lenders to implement a financial ‘stress test’. This means that lenders will want to make sure that even if (and when) interest rates rise their borrower will still be able to pay the increased mortgage repayments.

If you are still working, there are plenty of lenders happy to extend terms on a interest only mortgage. 

Mortgage lenders are looking for a clear picture of your finances over time. They need to see that you are regularly profitable and that the business is stable.

New research shows that 75% of borrowers could be missing out on the opportunity to pay less for their mortgage.

Equity release is a term given to the mechanism by which a homeowner can raise either a cash lump sum or a regular periodic income in return for either selling or mortgaging all or part of their home. 

A stress test is the term given to the process by which lenders assess the sustainable affordability of a loan to a buyer. Required by law to undertake such affordability tests as a result of legislation following the 2008 credit crunch and housing crisis, stress tests are there to protect the borrower (and the lender) for entering into ill-conceived or risky loan arrangements.

Nowadays, obtaining a mortgage is a complicated thing. We all have credit scores, whether we know it or not, and our chances of obtaining a mortgage offer will be largely determined by that score.

With ‘Help to Buy’, the Government lends you up to 20% of the cost of your newly built home, so you may only need a 5% cash deposit and a 75% mortgage to make up the rest.  To reflect the current property prices in London, from February 2016 the Government is increasing the upper limit for the equity loan it gives new home-buyers within Greater London from 20% to 40%.

There are a variety of criteria that a mortgage lender will set before they will consider lending. Some lenders will not lend to a borrower with previous CCJs but others will, dependent on the facts. Of course, the riskier a borrower is deemed to be, the more expensive the mortgage is.

August 2016 ushered in the lowest ever Bank of England Base rate at a staggering 0.25%. To put this in perspective, the highest Bank of England Base Rate was set at 15% during the Summer of 1990.  But why is the Bank of England Base Rate relevant to the homeowner?

It’s perhaps one of life’s ironies that most of us are keen to get on the housing ladder and yet, almost as soon as we get there, we are just as keen to get rid ourselves of the debt burden we were so keen to take on to buy our dream home.

Our brokers are professionally trained and qualified to offer you the best quality advice. We work on your behalf. You are our client and as such we owe you a legal duty of care to act in your best interests. At Mortgage Required, we are on your side, we know the market and we are here to help!

Both Payment Protection Insurance and Mortgage Payment Protection Insurance are forms of ASU. Accident, Sickness and Unemployment Insurance is usually taken when someone is concerned about how they would meet their obligations were they to be incapacitated by accident, sickness or unemployment.

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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