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Mortgages

Mortgage Advice from Northumberland Mortgage Advisors

Buying a house is likely to be one of the largest, most expensive purchases you ever make. That’s why it is so important to get the right mortgage at the right rate that’s just right for you.

Whether you’re a first time buyer, home mover or investor we can help you find the best deal for your circumstances. We are whole of market advisers and can offer a huge range of mortgages. We will take time to understand your needs and research the right one for you.

Because our interest is in our client and ensuring you receive a top notch and valuable service from us we will also ensure you understand each part of your sale/purchase. We will happily explain the conveyancing, work with other professionals such as solicitors, estate agents and accountants to help with the process.

Buying a house is an exciting time and is often one of the first steps on your financial journey. We believe getting the foundations absolutely right at this stage as this is a key part of financial planning. Getting the right start to your financial journey is essential and we will help you by recommending the most appropriate mortgage for your circumstances.

We can take away the hassle and stress and allow you to focus on the good things!

 

There are two main types of mortgage:

Interest only

This type of mortgage allows you to borrow the money you need to purchase a house over a fixed period of time and you only pay the interest on the loan. At the end of the mortgage you will still owe the full amount of the loan. This type of mortgage should be very carefully considered as you must have the ability to repay the loan at the end of the term. Now many lenders will only accept up to 50% of mortgage amount on an interest only basis.

Capital Repayment

This is the most popular type of mortgage – the borrower pays back the capital and interest on the mortgage over a fixed period of time. At the end of the term, provided all payments have been made and no further borrowing has been taken, the loan will be repaid. This gives the borrower total peace of mind.

 

Once we have agreed the type of mortgage you require the next step is to look at what interest rate deals are available:

Standard variable rate

Mortgage payments go up or down depending on the lenders standard interest rate. This rate isn’t linked directly to the Bank of England’s base rate – it’s set by individual lenders.

Discounted rate

The interest rate is lower to begin with and then you move to another rate after an agreed period (normally the lenders SVR).

Tracker

These rates follow or ‘track’ the Bank of England’s base rate or another base rate. So they will go up and down in line with the agreed base rate.

Fixed rate

This is best if you need to budget. You pay a fixed amount for a set length of time. You will know exactly what your monthly payment is during the fixed term. At the end of the term you will generally move to the lenders SVR. Normally penalties apply if you try to exit the mortgage during the fixed period.

 

Capped or cap and collar

This is a variable interest rate but with the added security of a capped rate so your payments won’t ever exceed a certain amount, however it all comes with a collar – so if rates drop below the collar you won’t benefit from them.

 

Insurance

Building & Contents Insurance

This insurance covers damage to a property and its contents. Most mortgage lenders will insist on at least Buildings Insurance for the property they have agreed to loan money on.

Accident, Sickness and Unemployment Insurance

If you have an accident, sickness or find yourself redundant this insurance is designed to cover your mortgage repayments. It general lasts for a maximum of 12 months and of late the redundancy aspect has been excluded from some plans at outset.

 

 

There will be a fee of up to £345 for mortgage advice. The precise amount of the fee will depend upon your circumstances.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE