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Mortgages
First Time Buyer Mortgages

Residential Mortgages are a long-term loan, which is secured against a property owned by you and used as a residence. You will not be able to use this mortgage for renting purposes or use it for Commercial either.

Deposit

Residential mortgages require a minimum of 10% deposit of the property purchase price, the remaining 90% can be borrowed. In some cases, some lenders can offer 95% mortgages, with 5% deposits.

Affordability

Income and affordability will determine the total amount you can borrow. Lenders have different approaches to affordability calculations. The amount which can be borrowed will vary depending on the lender.

EXAMPLE:

Purchase price – £300,000

Deposit – £30,000

Mortgage – £270,000

Some lenders can offer a 95% mortgage. For first time buyers you can use the Governments ‘Help to Buy’ scheme, in this instance you may be eligible for a 5% deposit.

Monthly repayments

Monthly repayments consist of; Capital and Interest. Your repayments will include a portion of the amount borrowed along with a percentage of interest. At the end of your agreed term, you will have paid the mortgage in full as long as payments have been made. In instances that repayments are not met your home could be at risk.

Interest rates

Mortgages have an element of interest applied. This will be an annual percentage against the total value of your debt. There are many different types of products to choose from; our team can guide you through the process. There are many factors that you need to consider when selecting a mortgage, such as:

Fixed:

Fixed rate for a specific period; normally two, three or five years. Monthly Mortgage payments stay the same regardless of any variation of lenders interest rate.

Variable:

Standard variable rate. Monthly payments can increase or decrease depending on the current variable rate. These details are communicated to borrowers in advance.

Tracker:

These types of mortgages tend to track the Bank of England base rate, this means that the payments can increase or decrease depending on market conditions.

Discounted:

Similar to tracker rates but interest is at a set discount under the lenders own standard variable.

Capped:

Interest rate and monthly payments can increase or decrease, although it is guaranteed not to increase above the agreed ceiling rate.

Find out more

Our team is on hand and ready to help you. Contact us and we can discuss your requirements in more detail.

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