First Time Buyers
Getting a mortgage is one of the biggest financial commitments you are ever likely to make. There are many costs that you have to consider in owning your own home from initial fees & charges and legal costs to ensuring the mortgage and your bills remain affordable now and in the future. We also know it can be confusing and difficult to understand the mortgage market. Lenders all have various criteria to consider so comparing lenders on price alone is a risk as many other factors have to be considered.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Lenders base their decision based on an overall affordability assessment taking into consideration your income compared to your outgoings. This may seem straight forward but depending on your source of income, this can differ significantly between lenders. If you are employed and receive additional income such as commission or bonuses, the frequency these are paid can make a difference. If you are self-employed, are you a sole trader or a Limited Company? Do you pay yourself a salary and dividends as some lenders use your net profit where as some will only use what is declared to HMRC on your annual tax returns. The number of years you have been self-employed can also make a difference as some lenders average earnings over 2 or 3 years where as some will consider just 1 years accounts.
You will need to put down a minimum 5% deposit of the agreed purchase price although I would recommend a 10% deposit if possible as the lender options are restricted based on a 95% mortgage. The larger the deposit that you put down will usually help you secure a cheaper interest rate with lenders as they offer different interest rates in equal amounts of 5%. Rates are therefore typically cheaper based on 90%, 85%, 80%, 75% etc.
These days, affordability and credit checks play a crucial part in a lender’s assessment of whether they will give you a mortgage. If you have a poor or even fair credit score, this could impact on your ability to get a mortgage. The good news is that there are lenders who do not work on a credit score approach although they will still do a credit search to check if you have any adverse credit such as missed payments, defaults and CCJ’s. It is always best to check your credit score in advance of any potential application and if you have any concerns, we can help give you tips on how you can improve this to give you the best chance for your application to be approved. We would also recommend that your latest 3 months bank statements are in good order and not overdrawn.
At Chris Law Mortgages we have the expertise and experience to help you find the right mortgage deal taking all of your personal circumstances into consideration. We will be here to help throughout the journey as we will liaise with the estate agents, lender and solicitors right through to completion when you will get the keys to your new home.
Moving Home
Purchasing a new home can be a stressful process. We are here to help take the stress off your shoulders and walk you through the process every step of the way. When you are thinking about buying a new home, you need to consider how much you can afford so that you can make sure you are searching and viewing realistic properties. Book in a free consultation so that we can help guide you through a detailed affordability assessment to give you the confidence to start your property search.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Buy to Let
In terms of investment, property is still seen as a worthwhile and prudent place to put your money. This is particularly true for the medium to long term and it is not purely the domain of the wealthy. Many people have invested and continue to invest in property via Buy to Let mortgages with the objective being to generate income or capital growth or hopefully both. Buy to Let mortgages are a great way to diversify investment or supplement pension income with regular rental contributions. Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Remortgage
The most common reason for remortgaging will be in order to secure a new competitive rate as you come to the end of your current deal with your existing lender. This is also a time when clients may wish to refinance to help release equity towards planned home improvements or to consolidate expensive debts. Whilst adding debts to your mortgage will help to reduce your monthly outgoings, typically you will end up paying more in interest as you will usually be taking this over an increased term. If consolidating debts is something that you are considering, a meeting with one of our advisers will help you fully understand your options and whether this is right for you as there may be alternative and better solutions for you.
All our existing clients are contacted 4 months prior to your existing mortgage deal coming to the end of its existing rate to ensure you have the time to consider all your options. We will then complete a full remortgage review for you discussing your future plans at that time. We will help you find the best rate looking at both new lenders across the market plus the retention products with your current lender to ensure all options are considered.
We will also look to see if reducing your term is a possibility. You may have an increased salary or less outgoings since your initial mortgage was taken out so it is always worth considering paying slightly more per month to see if you can reduce the term of your mortgage.
If you are currently tied in with your existing lender, please contact us so that we can add your details to our remortgage diary. We will then contact you when your review is next due, 4 months prior to your existing rate ending.
At Chris Law Mortgages, we will take into consideration your personal situation to help you choose the right mortgage for you.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.