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.

Protection Planning

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.

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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

This is a combination of current, savings and mortgage accounts. The mortgage element will still be a repayment, interest only or flexible loan, but the amount of money in your current and/or savings accounts is taken into account when the interest on your mortgage is calculated.

Interest only

This type of mortgage does not require you to pay off the capital until the end of the loan. The monthly payments to the lender are made up entirely of interest on your outstanding debt. To be able to pay off the loan at the end of the term you will need to have saved the equivalent amount through some sort of savings plan, typically an endowment or ISA.

Flexible

Flexible mortgages are fairly new to the market. They offer you the facility to increase or decrease your monthly payments depending on your available cash flow and should reduce the overall amount of interest you pay throughout the loan term.

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: 

The interest rate you pay rises and falls in line with the bank of England base rate.

Fixed

The interest rate is fixed for a specified number of years, normally between 1 and 5, although longer terms are available. There can be early repayment charges if you repay your mortgage before this time is up.

Discounted: 

The lender gives you a discount on its standard variable rate for a given time.

Capped: 

The interest rate will not rise above a certain percentage for a fixed-term period.

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

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