First time buyer
Purchasing a home is one of the most important purchases you will ever have to make in your lifetime. This experience, especially for a first time buyer can be extremely intimidating and a daunting experience.
With so many aspects to take into consideration, it can be difficult to know exactly where to begin when finding a mortgage.
The market consists of a wide range of choices to select from, and although it is beneficial to have such a wide range of providers and mortgages, it can also be overwhelming and leave you puzzled.
We specialise in handling first time buyers and providing effective mortgage solutions for our clients. Rather than spending your time debating over your choice, we could save you both time and money by offering you the best mortgage for your personal circumstance.
Buy-to-Let
A buy-to-let mortgage, often referred to as an investment mortgage, is structured for borrowers who want to let their property out to a third party.
The number of people that are investing in property as a long-term investment is steadily increasing, with hopes of securing funds for retirement.
Due to the growing popularity of this market, there are now competitive mortgage deals for people planning on purchasing a buy to let property, with fixed and variable rate options available.
Also, besides the assessment of normal income, mortgage lenders will also consider the earning potential of the property.
Buy to let lending criteria
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Buy-to-let mortgages are usually 0.5% higher in interest then a residential mortgage |
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Most lenders require a minimum rental income which will need to cover the mortgage payments. This is calculated on an interest only basis and is usually around 125% - 130%. |
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The buyer will be required to put down a deposit that will typically be larger than a residential mortgage, probably around 15-20% of the property’s value. |
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Let-to-Buy
A more unique option available that is steadily becoming more popular with homeowners is the Let to Buy mortgage.
This mortgage allows home owners to purchase a new main residence while renting out their existing property. By having tenants, the existing mortgage payments would then be covered by the rent.
Even though you already own an existing property, let to buy mortgage lenders can offer a mortgage for the new property based on usual income multiples. This would then allow you to benefit from “owner-occupier rates”, which would allow you to avoid the more costly buy to let mortgages.
Buy to let mortgages often require 15% to 25% as a purchase deposit, whereas the let to buy option only requires a 10% deposit. Even if you do not have the sufficient amount of funds to make a deposit, we may be able to help raise
this through a remortgage.
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Remortgages
Remortgaging has become very popular due to the potential savings involved.
In today's competitive market, many homeowners are switching their mortgage
every few years in order to take advantage of the new rates available.
Remortgaging involves renegotiating the terms of your original mortgage or switching to another lender with a more competitive rate. Doing so will allow you to get a better rate whilst saving money on your monthly repayments or repaying your mortgage earlier.
Not only will your payments be reduced, you can also release the equity tied up in your existing property.
If the property has been in your ownership for a few years, it has the possibility of releasing extra income which you can use to pay off debts, buy a new car, home improvements such as a conservatory or a new kitchen, splash out on an luxury holiday, use for a deposit on a buy to let property or use it for land investments.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE
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