Our Mortgage Guide

This guide will give you the need to know information and we have partnered with
Always wright mortgages who are happy to give a free advice throughout your journey.
We want to put you in a position to purchase your home sooner than later.

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What is a mortgage?

A mortgage is a long-term borrowing facility used to purchase property or land. The loan is secured against the property which means the lender can re-possess the property if you don’t keep up with your repayments. The amount you borrow is usually a percentage of the property’s value, and you’ll pay interest on the lending until it’s repaid in full.

How Much Can I Borrow

what is the process of buying a home?

Here is our step-by-step guide to purchasing your home in the UK:

  • Agreement In Principle(AIP):
You need to find out how much you can borrow which will give you indication of which property you can purchase based on your income.
The AIP will help you decide what to do next, whether that be saving some more, increase your income, improve your credit report or start looking for a property.
  • How much deposit is required?
The amount of deposit required is different for each lender, some lenders allow you to put down 5% value of the property. Typically the deposit range between 10-20% value of the property. The more you put down the lower your monthly payments will be.
Our team can give you advice on creative ways to help you raise the deposit. Have a chat with us so we can help you create an action plan to help you get on the property ladder sooner.
  • Shop Around:
You’ll need to search for a property that fits your budget and meets your needs.
‘Don’t buy a palace on top of a dump’. – Don’t just purchase based on how the house looks, do your due diligence based on the purpose of the property whilst shopping around. Is this where you’re going to raise your kids?.
Is this a stepping stone to get on the property ladder then will move in the future?
Is this a holiday home?
Are you buying to rent? Analyse how the value of your property might change over the years by checking the crime rate, Historical house prices, and Check out local schools and facilities.

How will your family afford the cost of your death and the ongoing financial consequence?

People often underestimate the need for life insurance until it’s too late. We always encourage you to “Hope for the best and be prepared for the worst”

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Mortgage FAQ's

What are the different types of mortgages?

You can get different types of mortgages, commercial and residential being the main two types available.

What is an interest rate?

An interest rate is the margin between the Bank of England base rate and the lenders own charge.

What’s a Loan to Value (LTV)

LTV is calculated as a percentage which indicates how much value of the property is on a loan.
£100,000 property value with an outstand mortgage of £75,000 will have a 75% LTV.
Most lenders will offer a maximum LTV of 95%.
The lower the LTV the more likely you are to get lower interest rates.

How do I qualify for a mortgage?

You will need a few things to qualify for a mortgage, these can vary depending on the type you are applying for.

But generically you'll need passport, proof of income, a sales memorandum (if you are purchasing) Credit report, bank statements.

What’s a Tracker Mortgage:

A tracker mortgage tracks the Bank of England's base rate plus the lender’s set percentage. The interest rate and monthly payments will increase or decrease in line with the base rate.

What’s a Fixed-rate Mortgages:

A fixed-rate mortgage is where the interest rate stays the same for a set period of time, typically two, three, five or ten years.
This means the monthly repayments will remain the same for the fixed-rate period.

What’s a Standard Variable Rate (SVR)

SVR is where the interest rate can go up or down at any time. This means that the monthly payments can go up or down depending on changes to the lender's SVR. The SVR usually is at a higher interest rate but the advantage of SVR is there are no early repayment charges.

What other costs to consider?

When purchasing you should consider the following additional cost: Survey, solicitors fees, Stamp duty, home insurance, Life Insurance & Income Protection