It’s hard enough finding the time to research all your options, let alone trying to make sense of it all. Who has time for that? We do.
When you get a fixed-rate mortgage, your monthly payments will remain the same no matter what happens with interest rates. There are various fixed-rate periods, including 2, 3, and 5 years.
As the Bank of England’s Base Rate rises or falls, tracker mortgages follow it. An agreed margin is added to the Bank of England’s Base Rate to calculate the interest rate. A ‘lifetime’ tracker is for the life of the mortgage, and a ‘term’ tracker is for a period of two or three years.
Standard variable rate (SVR) mortgages
A SVR is the rate of interest charged once a fixed rate or term tracker period ends. Instead of switching to a SVR, you can usually move to another fixed or tracker product.
What is a capital repayment mortgage?
A capital repayment mortgage includes both capital repayments and interest payments each month. If you use this repayment method, your mortgage will be fully repaid at the end of the term.
What is an interest-only mortgage?
When you have an interest-only mortgage, your monthly payment covers only the interest on your loan, so your capital debt doesn’t decrease over time. Lenders will want to see evidence that you will be able to repay the debt in the future. Buying to let is often done with an interest-only mortgage.
Lenders may ask you to pay a valuation fee. The type of valuation you choose will depend on factors such as the age and condition of the property.
These are the costs your lender will charge you for arranging your mortgage. Some lenders will allow the fee to be added on to your mortgage, but this means you will be charged interest on it over the mortgage term.
The fees charged by a solicitor will include their conveyancing fee (i.e. for the transfer of land ownership), as well as charges for legal registrations and other miscellaneous costs (known as disbursements) such as local search fees and Land Registry fees. Some lenders may offer to finance some or all of your legal costs as an incentive.
If the amount you wish to borrow on your first time buyer mortgage is greater than a specified proportion of the property’s value (typically 75%), you may incur a higher lending charge.
Lenders may charge an ERC if you make an overpayment in excess of any stated limit, if the loan is repaid early or if you remortgage during the early repayment period. This can amount to a significant cost, so you should always check the early repayment terms in the offer letter from your lender.
Lenders may charge a fee to release the deeds of a mortgaged property to you or a new lender.
Your first meeting with a GHL Direct adviser to discuss your first time buyer mortgage is always free and without obligation. Some mortgage advisors may not charge a broker fee, whereas others charge based on the complexity of your case. All mortgage advisors will take commission from the bank or lender providing the loan. Your first time buyer mortgage advisor will outline all this to you at the start of the meeting.
Your home or property may be repossessed if you do not keep up repayments on your mortgage. Some buy to let mortgages are not regulated by the Financial Conduct Authority.