Unemployment cover has become more popular mainly due to recent economic conditions. This type of cover is highly recommended if there are any concerns of future employment. The mortgage payment must be fully protected from all eventualities. Unemployment cover can be combined with Accident and Sickness or taken out separately. Accident Sickness and Unemployment is…
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…
Building and Contents insurance is highly recommended for all 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 mortgage is secured against the property. Contents insurance is strongly advised. Buildings Insurance premiums are usually determined…
A fixed rate mortgage is where the interest rate payable to the lender is fixed for a specific period of time. Lenders may offer from one year to 25 years. The most common period of fixed rate mortgage are between 2-5 years. The advantages of fixing the interest rate are: Easy Budgeting If interest rates…
A discounted rate mortgage is a rate discounted from the Standard Variable Rate (SVR) set by the lender. The period offered may vary from 3 months up to 3 years. Once the discount is over, the rate will revert to the SVR. Most mortgage lenders apply early repayment charge during the scheme period. For example:…
Standard Variable Rate mortgages (SVR) can be offered to borrowers; and the rate offered is higher than the fixed rate and discounted rate schemes. Generally the main benefit of Standard Variable rate mortgage is there is no early repayment charge; our mortgage advisers will confirm the product with you. Standard Variable Rate mortgages are suited…
Most mortgage lenders offer the Base Rate Tracker mortgage. This type of mortgage scheme is linked to the Bank of England Base Rate. For example, the Bank of England’s official rate is 5% plus 0.5% offered by the lender. Therefore the mortgage rate is charged at 5.5%. The mortgage lenders offer similar period schemes to…
Due to current climates, more mortgage borrowers are considering purchasing properties whilst retaining their existing property and mortgage. This is referred to as a Let to Buy mortgage. Mortgage borrowers may consider this option so they dont sell for a loss or keep the property as an investment. Mortgage borrowers are taking risks and seeking…
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%…
