Mortgage Term Advice

Posted on April 20th, 2015

Mortgage Term

Mortgages are traditionally taken out for a 25 year period. There is no reason for this. The mortgage should be affordable and fully paid before they retire.

Many mortgage lenders now offer longer terms, providing the borrower is able to explain sufficient funds to pay the mortgage beyond the expected retirement age. Some mortgage lenders require evidence of repayment vehicles in retirement. Our mortgage brokers will be able to source and advise you the right deals based on your circumstances.

It also worth noting the shorter the mortgage term in years, the less the borrowers pay; an affordability check would determine the monthly budget; surplus and then mortgage term.

If you require mortgage term advice, please speak to one of our advisers based in Manchester. We have access to the whole mortgage market. Some clients may wish for a standard 25 mortgage term but initially think they’re unable due to age, again speak to one of our advisers whom can search the whole mortgage market and choose mortgage lenders whom can lend up to 75. Some mortgage lenders dont have maximum age restrictions; all depends on individual circumstances. Call us for further 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.


Early Repayment Charges

Posted on April 20th, 2015

An early repayment charge is also known as a ‘redemption charge.’ This charge applies when the borrower wishes to redeem their mortgage within the scheme period.

Early repayment charges must be taken into consideration at start of an mortgage application. A Keyfacts Illustration and mortgage offer will demonstrate this. Applicants whom are remortgaging or selling their existing properties are advised to speak to their existing mortgage providers and to confirm the total amount.

For example: 6% within the first 3 years. Therefore a loan of £100,000 equates to £6000 penalty plus a possible a Withdrawal fee.

Most mortgage lenders offer a portability feature which is advised to avoid such penalties. Our mortgage brokers will be able to source and advise you the right mortgage deals based on your circumstances.

If you require further mortgage advice on early repayment charges, please speak to one of our mortgage advisers. Some mortgage lenders will offer a lesser early repayment charge therefore speaking to one of our mortgage advisers is important. We are based in Manchester city centre and can offer appointments to suit 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.


Non-Standard Mortgage Advice

Posted on April 20th, 2015

Our mortgage staff are experienced enough to deal with all cases sympathetically. We will advise and recommend the right mortgage deal based on your circumstances whenever possible.

We Know Mortgages Ltd have access to the whole mortgage market and are able to source products from lenders who specialise in lending to people with poor credit histories.

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

If you require advice; please submit your details and one of our mortgage brokers will call you. We Know Mortgages Ltd have access to the whole market for mortgages and we’ll guide you through the mortgage process from start to finish. We’re based in Manchester city centre. Contact us for directions.


Solicitors

Posted on April 20th, 2015

Solicitor (or also known as Licensed Conveyancer) is those whom transfer a legal title of property from one person to another. Conveyancing is compulsory and normally required at the later stages of a mortgage application.

Under English and Welsh law, an agreement is not legally binding until ‘exchange of contracts’. This can pose advantages and disadvantages to purchasers and sellers. In some instances an ‘exchange of contract’ and completion can occur on the same day. In other instances, an ‘exchange of contract’ is days/weeks prior to completion day due to individual circumstances. Most applicants prefer to see contracts exchanged as its most likely a confirmation of the sale. If a party decides to abort after contracts have exchanged, legal action is likely.

It takes on average 4-6 weeks to complete a conveyancing transaction but sometimes are quicker given the circumstances.

For remortgage applicants, solicitors are required as one lender will register a charge over another. In some instances the lender will instruct their own solicitor from a panel and the costs are free for basic conveyancing. Removing or adding applicants can occur extra costs.

We advise all clients regarding solicitors to attain a full approximation of costs. Our mortgage advisers are able to recommend solicitors based in the Manchester region.

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

Legal services are not regulated by the Financial Conduct Authority.

 


Mortgage Surveys

Posted on April 20th, 2015

Mortgage Surveys

There are three types of mortgage valuations/surveys an applicant can choose from:

Basic

At the initial stages of the mortgage application, the minimum requirement is to carry out a basic mortgage valuation. This can costs up to £150 with an addition administration fee charged by mortgage lenders. Some lenders will offer free basic valuations.

This type of valuation is for lenders only and in some instances a copy of the report may not be forwarded to the applicants. The majority of applicants rely on this basic lenders valuation however We Know Mortgages would advise a more detailed survey done before purchasing the property. The age of the property should be taken into consideration.

Homebuyer’s Valuation

A homebuyers survey is a standard format set out by the ‘Royal Institution of Chartered Surveyors’ and is most suitable for properties built within the last 150 years and in generally sound condition.

The report can cost from £150-£500 and most mortgage lenders can arrange this type of report. The cost of the report depends on the mortgage lender and price of the property.

The applicants definitely gain a copy of the homebuyer’s report which should give a good indication of the state of property and its level of repair and maintenance.

Full Structural Reports

The most thorough of reports is a full structural inspection of the property. It is suitable for all properties especially listed buildings, older properties, buildings constructed in an unusual way, properties that are planned to alter or that have extensive alterations.

The report can consist of 20 pages and should on top of other reports include an inspection on gas, drainage and electrical systems.

It is common to instruct this report separately from the basic valuations. These types of reports usually cost from £400 to £1000.

Should I go for a basic valuation or structural report?

Buying a property is an expensive process taking conveyancing, arrangement fees and deposits into considerations. It’s natural for most applicants to keep their costs to the minimum. Most applicants would therefore favour a basic valuation due to costs.

On unusual properties, we will advise applicants on full structural reports. A basic valuation is a big gamble. Spending approximately £700 may initially seem steep but then again may seem very cheap if the report was to find major fault or restructuring required to the property. These reports are independent and are carried out prior to ‘exchange of contract’ and gives time to the purchaser to make decisions.

Therefore, we would advise applicants as a minimum to carry out a Homebuyers Report. If applicants opt on a basic valuation, we would make them aware that this is for lenders benefits only.

Will writing and Trusts are not regulated by the Financial Conduct Authority.

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