Mortage Planning
How we help with mortgages
Whether you are buying your first home, relocating or simply want to take advantage of better interest rates by re-mortgaging, we can help.
An independent mortgage adviser at Newstead Clark will review the whole of the market to determine which mortgage type is best for you and identify the most competitive deals based on your personal circumstances and objectives. Your adviser will also be able to carry out an affordability assessment, check your credit scoring and discuss your eligibility for a mortgage.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
What is a mortgage?
A mortgage is an agreement with a bank or building society to provide a loan to facilitate the purchase of a property or land.
The loan is made with the lender holding the title of the property as security for the loan in the event of default, which leads to the term ‘secured loan. Your home or property may be repossesed if you do not keep up the re-payments on your mortage.
The length of time that your mortgage is taken out for is known as the ‘term.’ Some lenders will allow you to take a mortgage term of up to 35 years.
Generally, the more deposit you can provide the better, and the more competitive the loan arrangements will be. The minimum for a residential mortgage will normally be at least 5% of the purchase price of the property, which means you would take out a 95% mortgage. A larger deposit could result in you paying back less interest, and entitle you to more competitive interest rates, because lenders will view you as less of a risk.
Most residential mortgages will be repayment mortgages, although in some limited instances the lender may allow an interest-only mortgage. There are two parts of a mortgage: the capital is the amount that you have borrowed, and the interest is the amount that the lender charges for having granted you the loan.
Method of Repayment in Detail
Repayment Mortgage
This is where payments are made up of part capital and part interest. During the early years of the mortgage, little capital is repaid but the rate of repayment accelerates over time. Repayment mortgages are normally quite flexible as it is usually possible to increase your monthly payments in order to pay off the loan more quickly.
Offset
Interest only
Flexible
Interest types in detail:
How will my interest be set?
Aside from methods of repayment, you have to decide which type of interest rate will be most suitable for you. Mortgages fall into two main categories; fixed-rate and variable rate, although there are a number of variations within each of these categories.
Variable:
Fixed
Discounted:
Capped:
Re-mortgaging in detail
A re-mortgage occurs commonly where you either come to the end of a fixed or variable rate deal, where you are looking to borrow more money or where you simply feel the lender’s interest rates are no longer competitive. At Newstead Clark, our independent mortgage advisers are able to search the whole of the market for competitive rates and the most suitable mortgage solution for you.
By being independent, we’re not limited to a restricted list of lenders, so we can search for the most suitable offer that matches your specific criteria. Once a suitable offer has been found, we will also manage your application for you, so you don’t have to worry about the paperwork.
We aim to offer a continued service, meaning we will review your mortgage to ensure it remains suitable for your needs.
Buy-to-let investments in detail
There are many advantages and disadvantages to consider when looking to purchase a buy to let property. If you are new to this type of property purchase, our experience and expertise will help you navigate the market and search for the most suitable offer.
It doesn’t matter if you are just starting out, or you are an experienced investor looking for a better offer, Newstead Clark will help you to find the most appropriate solution.
Risk Warning:
You may have to pay an early repayment charge to your existing lender if you remortgage.
If you would like to know more book a free initial no obligation meeting with one of our advisers today
