Here we provide answers to some of the most commonly asked questions regarding mortgage brokering and the other services we provide.
We are always looking to provide better assistance so if you have a question then please get in touch with us via our Facebook or Twitter account and we will get back to you and perhaps post the answer here as well.
A fixed rate mortgage maintains the same rate over a set period regardless of changes to interest rates. If the rate of interest increases with the bank then you will be unaffected, likewise if the interest rate goes down.
As a result a fixed rate can benefit or suffer as standard interest rates fluctuate. The real benefit of a fixed rate is that you know exactly what you will be paying and can budget around this more accurately. You might find that because this offers a level of assurance for the loan provider you may be eligible for a better initial rate. However you are likely to be tied in with a sizeable penalty to switch your mortgage.
Borrowing money to build a house can be managed much in the same way as applying for a mortgage. The main difference is that with a self-build, the money is released to you in stages as the build progresses. Therefore it is essential to work out the most suitable self-build mortgage option for your build’s size and timescale so that the money can be released as and when it is needed.
Equity release can allow you to release money tied up in your property’s value but there are some negatives to consider when applying.
Firstly it will reduce the value of your estate as you are effectively taking cash out of part of its value. This will in turn reduce the inheritance you are able to pass on to your beneficiaries. It can also affect your entitlement to social security benefits and can make it more difficult to re-mortgage.
An equity release can also incur expensive setup costs and can incur early repayment charges in some cases.
It is important to have a full understanding of the equity release options available to you, as well as ensuring that you are not buying into an option with unexpected additional expenses.
What you can borrow is based on your current income. This includes commission, overtime, bonuses and any additional taxable monies. Different lenders use different methods to calculate what you can borrow based on this with some using a multiple of your income and others basing it on your calculated disposable income.
We can assist you in calculating how much you will be able to borrow.
Most lenders do not offer preferential rates for first-time buyers and they are subject to the same lending criteria as any other borrower.