Mortgages & Protection

Mortgages

We provide regular updates and a high level of communication throughout the process continuing right through to the completion date. Thereafter we are always available for regular reviews at a timescale to suit our clients.

We have a quick and easy research system. This means that as soon as we hear from you we are able to give you fast and accurate information. Rates and products change frequently so it is important that we keep you up to date and ensure that you get the best possible product.

Getting the right product is only part of the service, we will communicate with the solicitors, lenders and estate agents (if applicable) to make sure that the whole process runs as smoothly as possible. More importantly this will certainly save you time, worry and money.

Main types of mortgages

  • Remortgages

    As you start to approach the end of your existing fixed or tracker rate or you are already on a standard variable rate it is a good idea to start looking at your options in connection with securing a product that suits your requirements. Part of our service to you is to help you assess the mortgage market and find a product that suits you best. This would include discussing your existing lenders products as well. Or this could be a time when you wish to borrow extra funds for home improvements…

  • First time buyers

    For all our customers and clients we talk through the process, costs and products with as much detail and care as possible. For First Time Buyers we are happy to discuss ways you can get on the property ladder even if it is something you are considering for the future. Our aim is to ensure that a full understanding and knowledge has been given to our clients according to their experience in these matters. We communicate regularly in a way that suits our client. This can be via text, email, phone or via a face to face meeting.

  • The help to buy government scheme

    The Government has created the Help to Buy scheme to help people take steps to buy their own home. Whether you want to get onto the housing ladder or move up it, Help to Buy makes it possible to buy a new-build or existing home priced up to £600,000 with as little as a 5% deposit. – See more at: https://www.helptobuy.gov.uk/

    H2B Equity Loan

    With a Help to Buy: equity loan the Government lends you up to 20% of the cost of your new-build home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home. – Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a value no greater than £600,000. You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with a Help to Buy equity loan. This scheme is available in England only. The Scottish Government, Welsh Government and Northern Ireland Housing Executive run similar schemes. For further information please click this link: https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-Feb-160216.pdf

    We are happy to answer any questions you may have on this and will help you complete the application form/process if required.

    Please note that you must meet the current requirements of the help to buy scheme (i.e. no more than 4.5x your gross household income). We can discuss in full how this works with you.

  • Buy to let

    Whether you are an experienced landlord or looking to enter this market for the first time we are here to help. Buy to lets normally are assessed on your income and will also focus more on the rental income when assessing affordability. Buy To Lets are becoming more and more popular at the moment and the rental market is growing.

    Y-not give us a ring for a free chat about how you can start your property portfolio.

    Things to consider before you buy to let?
    • What type of tenant are you looking for? Think carefully about the type of tenant you want to attract e.g. Young professionals, families or sharers. Considering this issue may help you to decide on the type of property you purchase and its location.
    • Where’s the best area? Do your research and visit lots of different areas. Location is an important consideration and will often determine the type of tenant you will let to. Don’t necessarily buy locally to your home. Think about prosperous towns which might attract a higher demand for rental property.
    • What’s the location like? Think about transport links, parking, shops, schools and other local facilities – pick the brains of letting agents for information about areas where properties may be easier to rent.
    • What state is the property in? If you’re buying a property which needs improvements, then restrictions could be placed on the amount you can borrow and it could also delay how quickly you can let the property out. Can you afford the mortgage payments during the renovation period?
    • How much rent are you likely to receive? Do your homework – talk to local letting agents, check the local press to find out comparable rental values. What else do I need to know?
    • The policy stops when a claim has been paid. These policies have no cash in value at any time.

    Buy to Let can be a huge investment and like all types of investment it carries some risks. Our Mortgage Advisers can help you understand the financial commitments involved. Please remember there are no guarantees as to what rental income your Buy to Let property will generate and whether it will rise in value over the years.

    Another important issue to take into account are the recent changes in Stamp duty tax and increase in income tax you may have to pay if you intend on buying/owning a buy to let property or a second home. Please speak to an accountant for further information on this or click this link: https://www.gov.uk/renting-out-a-property/paying-tax

    Stamp duty

    People buying additional property, including buy-to-let or second homes, will face a 3 % surcharge on stamp duty rates from April 2016.

    The tax increases will apply to any additional residential property costing more than £40,000. You won’t pay the extra 3% if the property you’re buying is replacing your main residence and that has already been sold. If there’s a delay selling your main residence and it hasn’t been sold on the day you complete your new purchase, then you’ll have to pay higher rates because you own 2 properties; however, you may get a refund if you sell your previous main home within 36 months.

    If you are purchasing any properties jointly with other people and any of them already own one or more properties, you’ll need to pay the higher rates. If you’re married or in a civil partnership, buying a property and your spouse or civil partner already owns a property you may still be liable to the higher rates. But you may be able claim a refund if they then go on to sell it.

    New second property stamp duty rates
    Up to £125,000 3%
    Over £125,000 and up to £250,000 5%
    Over £250,000 and up to £925,000 8%
    Over £925,000 and up to £1,500,000 13%
    Over £1,500,000 15%
    Purchase price of property Rate paid on portion of price within each band

    Some of the detail in this article has been taken from www.gov.uk and is written without prejudice and for information purposes only.

    Stamp duty land tax rates

    You have to pay Stamp Duty Land Tax (SDLT) if you buy a property in the UK over a certain price. This is charged on all purchases of houses, flats and other land and buildings.

    • None payable on the first £125,000
    • 2% payable on the amount between £125,000 and £250,000
    • 5% payable on the amount between £250,000 and £925,000
    • 10% payable on the amount between £925,000 and £1.5m
    • 12% on the portion above £1.5m

    For example : House bought for £325,000, Stamp Duty is £6,250.

Main types of mortgage rates

  • Fixed rate mortgage

    A fixed rate mortgage provides guaranteed monthly payments for a pre-determined period of time.

    If you’re the kind of person who likes certainty and the reassurance of knowing exactly what your monthly outgoings will be, then a fixed rate mortgage may be most suitable for you.

    A fixed rate mortgage sets the interest rate that you will pay for a specified period, guaranteeing the amount payable each month for a fixed length of time.

    Fixed rate mortgages often have an early repayment charge which varies between lenders. Usually, this only applies during the fixed rate period itself; however, there may be some which do have early repayment charges beyond this period.

  • Tracker rate mortgage

    With a base rate tracker mortgage the rate of interest you pay is tied to the base rate set by the Bank of England. These rates rise and fall of interest rates which means that your monthly payments could go up and well as down.

    Typically, the tracker mortgage rate will be set as a certain percentage above the base rate and although the resulting interest rate is usually lower than a mortgage lender’s standard variable rate, this will vary from lender to lender.

    Tracker mortgages often have an early repayment charge which varies between lenders. Usually, this only applies during the term of the initial incentive or tracker period; however there may be some tracker mortgages which have early repayment charges beyond this period.

  • Standard variable rate mortgage

    Standard Variable Rate (SVR) is a lenders variable rate and means that your payments can go up or down according to movements in interest rates which are set by the lender. This type of rate does NOT track the Bank of England’s base rate.

    In other words, the rate you pay on an SVR mortgage will be determined by your mortgage lender.

    Your mortgage lender may also increase or decrease their Standard Variable Rate at any time – not only after Base Rate changes.

    When you’re on a Standard Variable Rate mortgage you won’t normally have to pay an Early Repayment Charge if you want to pay off your mortgage sooner or remortgage to a new deal.

    However, SVRs can also be quite expensive – certainly more than the best tracker rate mortgages available. They also don’t give you the payment security of a fixed rate as the amount you pay can go up or down.

    If you feel you would like to make large overpayments or pay off your mortgage within the next few years we can also look at mortgages where you can make large or unlimited overpayments without being charges an early redemption charge – please contact us for more information.

Protection

Having suitable insurance in place to protect not only your family but also yourself, at a time of great stress, is an integral part of life. It’s hard enough dealing with bad news let alone being placed into a situation of financial difficulty. Insurance can help repay your mortgage and provide financial stability for your family. In addition to this it can help supplement your income in the event of disability and illness and/or provide disability and illness cover by way of a lump sum payout.

  • Level term cover
    • We help you select the amount of cover you want and how long you would like the policy to run for.
    • The amount of cover stays at a certain level and will not decrease.
    • If you die during the policy term the insurer will pay the amount you are covered for.
    • If you set up a joint policy (one policy to cover two people) the amount of cover is paid out on the first death. This can be an economical way of providing adequate protection.
    • The policy stops when a claim has been paid. These policies have no cash in value at any time.
  • Mortgage cover (decreasing term)
    • We help you choose the amount of cover you want and how long you would like the policy to run for.
    • The amount of cover reduces each month during the policy term and is calculated to be enough to equal the capital outstanding under a normal repayment mortgage.
    • If you die during the policy term your insurer will pay the calculated amount of cover at that time.
    • If you set up a joint policy (one policy to cover two people) the amount of cover is paid out on the first death.
    • The policy stops when a claim has been paid. These policies have no cash in value at any time.
    • This contract is often ideal for a repayment mortgage.
  • Critical illness
    • You choose the amount of cover you want and how long you would like the policy to run for.
    • If you die or are diagnosed with an earlier critical illness during the policy term your insurer will pay the calculated amount of cover at that time.
    • The types of illnesses covered are Heart Attack, Stroke, Cancer, and Multiple Sclerosis (the full list of illnesses covered are detailed by the insurers in their key features document which is available on request).
    • If you set up a joint policy (one policy covering two people) the amount of cover is paid out on the first claim.
    • The policy stops when a claim has been paid. These policies have no cash in value at any time.