A shared ownership is where a first time buyer purchases a proportion of a property (Usually 25%, 50%, or 75%) and rents the remaining balance. Shared Ownerships are usually offered by housing associations, to those who fit their specific criteria. There are a number of government incentive schemes available which favour key workers and applicants…
A buy to let mortgage is a loan for someone who purchases a residential property with a view to renting it out as an investment. Mortgage lenders view Buy To Let as a greater financial risk because immediate vacant possession is not always guaranteed. Therefore mortgage lenders tend to: Ask for bigger deposits, usually 15-20%…
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…
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…
Contents insurance is very important for all mortgage homeowners. The loss of their home and all its contents could be one of the most serious financial losses they’re likely to face. Buildings insurance is compulsory as their debt is secured against the property. Contents insurance is strongly advised. Contents insurers usually cover all kinds of…
Libor stands for London Interbank Offered Rate and it’s the rate which banks in the London market lend each other money. The main differences between LIBOR and the base rate are: LIBOR rates are set by market forces and not by an independent committee whom regularly review every month. LIBOR rates can change from day…
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…
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…
People commonly give three excuses for not having a Will: I don’t need a Will because all my money will automatically go to my partner or children. I don’t have enough money to write a Will. I know I need to write a Will but I’ll do it later. These excuses are misguided and the…
The most common type of repayment vehicle is a capital and interest (or repayment) mortgage; whereas under this arrangement, the borrower makes a single payment to the lender each month consisting of: Interest – charged on the outstanding capital. The interest repaid starts at a relatively high level and reduces year by year; Capital –…
