MORTGAGES

WHAT IS A MORTGAGE?

Mortgages are straightforward; they are simply loans to buy a home. The complications come from the strings attached to the deal by mortgage lenders who want to make sure any money they lend is protected against falling property values and that a borrower can afford to keep up repayments on the loan.

Mortgages come in many types: fixed, variable, tracker, and offset to name a few. The trick is not to worry about how the mortgage works but to figure out how much you can comfortably borrow first. The best way to demystify a mortgage is to breakdown the application into parts:
Work out your borrowing power: Mortgage repayments depend on income and the amount left after deducting any other financial commitments like credit cards and car loans.

Calculate how much you can put in as a cash deposit: It can range from 5% (Help to Buy schemes) to 25% (average) of the property value.
Check out your credit rating: Look at your credit rating online or write to one of the firms that keep the files to check that you have no defaults, missed payments, or county court judgments. Missed payments for mobile phone bills are one of the most common reasons for people with an otherwise clean credit history to lose the chance of a mortgage.

Note: Our mortgage adviser might charge you a fee of £295.

RESIDENTIAL MORTGAGES

BUY-TO-LET

* Some buy-to-let mortgages are not regulated by the Financial Conduct Authority.

If you’re thinking of buying to let, you’ve come to the right place. Our experienced Mortgage advisors specialize in arranging buy-to-let mortgages and providing expert information and advice. Whether you are taking your first steps into the buy-to-let market, or are steadily building up a property portfolio, we can provide the help you need.

Buy to let is the popular name for a residential letting business that generates an income from rents. Investing in buy-to-let is a modern phenomenon that has soared in popularity over recent years. The buy-to-let market is split. Investors vary from accidental investors who have inherited a property or had to move and let their former home out to pay the bills to professional landlords who have portfolios of up to 100 letting properties or more.

Many investors have decided to buy homes to rent because they were disenchanted with saving for retirement in poor-performing pensions. House price surveys show property values roughly double every decade and outperform stock markets and most other investments year on year.
Buy-to-let is not restricted to residential property. The term can cover buying and letting any property, like shops or units on an industrial estate. Funding commercial buy-to-let is handled by specialist lenders.

REMORTGAGES

A remortgage is a second or an additional mortgage taken out on an existing home mortgage loan. You may decide to remortgage to either release cash or secure a better mortgage deal. Remortgaging may be a good choice for you as a way of raising additional funds or if you are looking to switch to another loan provider to get more favorable interest rates or mortgage terms.
A remortgage can be taken out as a repayment mortgage or an interest-only home loan. You can find remortgages that have all the standard terms, including fixed and variable rates, capped rates, discounts, and tracker remortgages. Remortgaging packages usually last for a period of between 1 to 5 years. At the end of your agreed remortgage term, you are likely to be moved on to a pre-agreed product such as a loan with a tracker or a variable rate.

How do remortgages work?

In order to determine a typical amount you are permitted to borrow, the loan provider you have chosen to obtain your remortgage will take into account a variety of issues as follows:

• statements and proof of your annual income
• statements and proof of your annual or monthly expenditure
• your property value
• any existing equity you may have

COMMERCIAL MORTGAGES

* Commercial mortgages are not regulated by the Financial Conduct Authority.

What are commercial mortgages?

• they most popular type of mortgage used to buy buildings and land for business purposes
• they are offered to start-ups, small to medium businesses and large businesses
• the lender holds the legal rights over the business property/land until the loan is fully paid.

Why do I need a commercial mortgage?

It could be that you need:
• to expand or
• more storage space or
• to buy your own office premises.

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