|
COMPLETING OUR FORMS: Personal & contact details Fill in this section and we will ensure you are contacted by an advisor in your area. We guarantee that your information will be used solely for this purpose, and will not be passed to any third parties for alternative use.    |
Mortgage Guide Where to get a mortgage These days you have more options when it comes to sourcing a mortgage than previously when you could only use a building society. You could have had a range of products at the larger societies, or gone for a local branch that has the local knowledge that's important to you. However, now you still have those options, as well as several others. With the internet it is much easier to research which mortgage is best for you. Many sites allow you to check every available mortgage beforehand, and the lenders are now more flexible. This means that you can apply online or over the phone, though you should only do this if you are completely sure that you have made the best choice! Alternatively you could speak to an independent mortgage broker. The advantage they have is that they have access to every mortgage product on the market, meaning that whatever your circumstances, they can find you the best deal. You can also rest easy that the mortgage you do go for will not be stretching you beyond your means. How much can you afford? Before you begin looking for a new home it is best to set yourself a budget, and the easiest way to do this is to work out how much you can reasonably borrow. Typically a mortgage will allow you to borrow on 3.25 times your income for a single applicant. To work out the value of the home you could buy add on the value of the deposit you have available. However, be aware that you cannot use all of your savings for a deposit, as there are other charges that you need to take into account. For example, Stamp Duty is payable on all houses over the value of £60,000 and varies according to the value of the property. This can reach up to several thousands of pounds. In addition, there are also legal fees to consider as well as the cost of moving home. You should also remember that surveys and valuation fees may be payable – it is worth paying for these, as you may be exposed to unexpected expenditure if you have not had a survey carried out on a home you have purchased. How to repay The two main methods are Capital and Interest and Interest Only. Capital and Interest means that you will be paying a portion of the loan back as well as the interest on it. The monthly repayments will be larger than the equivalent Interest Only mortgage, but this is because you are gradually repaying the loan. This is best if you want to pay off the loan as soon as possible. You are guaranteed to have paid off the complete sum by the end of the term. Interest Only is best if you are hoping to keep your payments low for the first few years of the mortgage, and, if the housing prices are kind to you, you may be able to pay off the loan and leave yourself with a lump sum left over. However, it is inherently risky, as you are not paying off any of the loan, but merely the interest on it. |
|||||
|
||||||