Offset Mortgage Advice

Posted on April 21st, 2015

Offset Mortgages

An Offset mortgage combines the borrower’s mortgage account with their savings/current account. All payments into the current/savings account can reduce the amount outstanding and the interest payable. The funds in the savings/current account offset the borrowings in the mortgage account.

Alternatively a Current Account Mortgage has one single account, which is the equivalent to a very large overdraft.

The main advantage is if the spending is minimised and within the agreed limit, the interest payable is considerably reduced. The interest is also tax free within an Offset mortgage.

The main drawback is some borrowers are uncomfortable with putting both mortgage and savings into the same basket. Some mortgage borrowers may also exceed the agreed spending limit as the monies are easily available, hence not reducing the mortgage amount owed.

If you require offset mortgage advice, please speak to one of our mortgage advisers. We have access to the whole mortgage market and as mortgage brokers we can search the right offset mortgage. We’re based in Manchester city centre and offer face to face appointments. We will go through your mortgage options.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Flexible mortgages

Posted on April 20th, 2015

Flexible mortgages are only offered by a few number of mortgage lenders amongst high street banks and building societies. A flexible mortgage has not been standardised between mortgage lenders, but typically, borrowers can:

  • Overpay or underpay on their monthly mortgage payment
  • Take a payment holiday
  • Repay lump sums
  • Take further loans up to an agreed amount. This may be in the form of a drawdown facility.
  • Avoid redemption penalties

This type of mortgage appeals to those whose income fluctuates or will except a large one off payment I.e. bonuses or an inheritance.

If you require advice on a flexible mortgage, please speak to one of our advisers based in Manchester city centre. We have access to the whole market and will search the right flexible mortgage for you.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Cashback Mortgages

Posted on April 20th, 2015

Cash back mortgages are offered by some lenders and it varies amongst the products they offer. Cash back is normally paid to applicants on completion of the mortgage to the solicitor. In some cases, mortgage lenders will send a cheque to the new residential house within a couple of weeks of completion.

Cash back mortgages usually help with set up costs such as legal fees or furniture.

Cash back mortgages can have its downsides as the bigger the cash back the higher the rate and early repayment charge. However in some instances, mortgage lenders will not apply higher rates and simply be seeking further business by offering this incentive. Speak to one of our mortgage brokers for information on up to date mortgage products.

If you require mortgage advice on cash back and you are a first time buyer; please submit your details above and one of our mortgage brokers will call you. We Know Mortgages Ltd have access to thousands of mortgage products across the high street and building societies. We’ll guide you through the mortgage process from start to finish. We are based in Manchester.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Portable mortgage

Posted on April 20th, 2015

A portable mortgage is quite common feature amongst most mortgages taken out. This should be highlighted by the mortgage adviser and illustrated on a mortgage offer.

A portable mortgage is where the mortgage is transferable without PENALTY if you move home. Without this feature an Early Repayment Charge maybe payable if the consumer decides to move within the scheme period.

A portable mortgage is suitable to those seeking to move home in the short term whilst in the scheme period. Applicants whom seek to move within the short term for whatever reason i.e. bigger property are advised to take out a mortgage with a portable feature

It is important to note that not all mortgage products are portable especially in the sub prime market.

At the initial mortgage application stage, a Key Facts Illustration will demonstrate whether the mortgage is portable or not. The Key Facts Illustration will highlight all features of a proposed mortgage.

If you require mortgage advice on a portable mortgage, please speak to one of our mortgage advisers. As stated, portable mortgages are important features within mortgage terms. This mortgage feature is important and offers flexibility for the mortgage borrower. Please note, the mortgage lender generally would want the same or more of a loan amount to be transferred. If the mortgage borrower is seeking to transfer less to the new property, it is most likely the mortgage lender will charge an early repayment charge for the difference.

Future portabilty will depend upon lending criteria at the time and your financial status; and lenders affordability criteria may change. Please speak to your individual mortgage lender or call us for further mortgage advice.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.