Pennys and Mortgage Help UK
When you come to Mortgage Help UK they are on your side.
They will remove the confusion and give you straightforward advice and a totally independent view. They'll search the UK mortgage market to find you the most competitive deal, one that matches your needs and circumstances.
Directors Jeff Bundy and Robin Stacey have been providing mortgage advice for over 15 years. They are open from 9 a.m. to 5 p.m. Monday to Friday and on Saturdays by appointment. Even if you can't make those times they'll work around you.
Please call our Independent Mortgage Adviser Jeff Bundy on 01395 275500 or email jeff@mortgage-help.co.uk
Frequently asked questions about mortgages
What makes a mortgage different from any other loan?
A mortgage loan is secured against property. This means the loan is less of a risk for the lender and the interest rate charged on a mortgage is lower than it is for other types of loan. The mortgage that you take out to buy your home will usually be called a first charge because when the property is sold, that lender is paid off first. If you default on the loan, the lender can repossess the property and sell it to pay off the loan.
The different types of mortgage:
Variable rate
For most people variable rate mortgages are the most familiar type of loan. The interest rate that you pay goes up and down during the term of your mortgage, broadly in line with interest rates in the economy as a whole. Some lenders only change interest rates at set times, levelling out any changes that have been made in rates.
Fixed rate
A fixed rate loan gives you a guaranteed rate of interest for an agreed period of time - anything from one year to ten years plus. This can be very comforting if you have a larger loan or a tight budget, because it guarantees that the payments won't rise with a change in interest rates during the fixed period. But a fixed rate loan commits you as well as your lender. If interest rates fall, your mortgage payments will remain the same, so you should think carefully about how long you want to be locked into the fixed rate. Frequently some lenders require you to remain with them on a variable rate after the fixed rate ends.
Flexible mortgages
Some mortgages, allow you to vary payments for periods of time. You could pay extra amounts to reduce your outstanding loan or build up a reserve to draw on in the future and you may be able to stop paying for a while. You may even be able to pay your mortgage off early.
Discounted rates
Some lenders will offer a discount on the interest rate they normally charge borrowers for a limited period to encourage people to borrow from them. Once the discount has expired, the interest rate will go back to the normal variable rate. Frequently some lenders require you to remain with them on a variable rate for a certain period after the discounted period ends.
Cashbacks
As an incentive to take out a mortgage, some lenders offer cash sums to borrowers on completion of their property purchase. These can be particularly appealing to first-time buyers who may need to buy carpets, furnishings etc.
Redemption penalties
When you begin a mortgage you should ask if there are any redemption penalties You may have to pay these penalties if you want to pay all or part of the mortgage early, change the terms of your mortgage with the same lender or transfer it to a new lender.
The Deposit
Normally, you'll need to find at least a 5% deposit, which is payable on exchange of contracts. A few lenders will give a 100% mortgage, where you borrow the full value of your home.
Adapting your mortgage
Once you've been in your home a few years, you may begin to think about improvements that you would like to make. If you need to raise money for home improvements, talk to your existing lender. Adding something to your mortgage - known as a further advance - is often the cheapest option. Your lender will probably make you pay for another valuation and perhaps a small administration fee.
Stamp-duty
No stamp-duty is payable up to £125,000. Above that 1% is payable up to £250,000, 3 % between £250,000 and £500,000 and 4% thereafter.
Surveyor's valuation report
Any lender will require a valuation of your prospective home and in most cases you will be expected to pay for this. It's important to realise that this is done for the lender's benefit to confirm the property is adequate security for the amount borrowed.
Solicitors
As well as paying a solicitor or licensed conveyancer for the work that he or she does, the cost of land registry charges and local search fees will also be passed on to you.
Application fees
Some mortgage lenders now charge an application fee to cover their initial administration costs. Fees are especially common with limited offers like 'fixed rate' deals and may not be refundable if your purchase falls through.
The best way to compare costs is to ask for a written quotation which clearly shows how much you will have to pay each month and what all the upfront charges are. Another way is to compare the annual percentage rates (APR) on your mortgage quotations.
