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Mortgages and Borrowing

The UK housing boom reached its peak in 2007 but since then, house prices have taken a serious knock, ravaged by the credit crisis and the effects of the recession. However, our love for bricks and mortar has kept property ownership at the top of the agenda.

We all buy property for different reasons, whether it be investment, income or simply to have a place to call home.

Lenders have become cautious and have tightened up their lending procedures. To apply for a mortgage now takes time and evidence to support your income. Understanding the various affordability tests employed by lenders can be daunting to even the most experienced home buyer.

Low interest rate deals offered to attract you into mortgage arrangements can be deceptive. It is therefore important you understand the potential catches. Headline interest rates are the main way these deals are marketed but they are a guide, nothing more. Certainly, you should check that the interest rate you are paying is competitive, but a number of other features could also make a significant difference.

Key Considerations

  • Not all lenders calculate interest daily, so capital repayments may not count instantly towards reducing your borrowing
  • Understanding charges, which include arrangement fees, reservation fees and higher lending charges (if you are borrowing a high percentage of a property's value) and these fees can knock out any gains made from the lower interest rate
  • Other fees, such as surveys, legal costs and exit penalties can be costly
  • Interest rate options are now very diverse and complex
  • Flexible, Offset and Bank Account mortgages offer great advantages for those who have disposable income, but need to be evaluated
  • In fact the options available within the market place can be baffling and guidance is a key requirement.

Our Key Skills

The mortgage market is highly competitive and lenders constantly bring out new deals. They are required to provide Key Facts and illustrations, but many can only provide information – they cannot give advice on whether their loan or another provider's is best for you.

We use our research skills and sourcing systems to keep up to date with details of all the latest mortgage products so we can find the right deal.

Our experience not only includes finding the right mortgage rate, but also encompasses the repayment options, reviewing your mortgage at regular intervals, but we will consider your affordability and personal circumstances, which will save you time and energy trawling through each lender’s criteria.

Remember, each time you apply, even if it is a decision in principle (which most estate agents now require), a search is noted on your credit file. By defining the most suitable lender at outset, saves time and keeps credit searches to a minimum.