Wheter you are a first-time buyer, looking to sell up and move on, purchase a second home or even re-mortgage - no matter what your circumstances - Top House can help. And to make things even easier, we will not only liase with your chosen mortgage provider, but also with your solicitor and estate agent.
Our aim...to make your transaction as stress-free as possible.
There are so many different types of mortgages on the market it can be a minefield trying to determine which is best, so let us guide you through the various options out there.
First Time Buyers
As a first time buyer it can be difficult to save enough money to qualify for a mortgage, so to help get on the property ladder the Government put schemes in place to help buy your first home.
Find out about these schemes by clicking the button.
This varies from lender to lender; each with their own standard variable rate (SVR) that can be set at whatever level they want and change by any amount at any given time - especially if there are rumours of the Bank Of England base rate increasing in the future.
In November 2020, the average interest rate on a 2 year fixed mortgage was 2.53%, while the average SVR was 4.44% - meaning repayments on a SVR mortgage could be far more expensive.
An SVR is higher than most mortgage deals currently on the market, so if you're currently on a SVR, it's definitley worth shopping around for a new mortgage.
A tracker mortgage, ‘tracks’ the Bank of England base rate, which currently stands at 0.1%.
For example, you might pay the base rate plus 3%
Base rate 0.1% + 3% = 3.1%
In the current mortgage market, you'd typically take out a tracker mortgage with an introductory deal period, usually of 2 years. After that period, you would be moved on to your lender's standard variable rate.
However, there are a small number of 'lifetime' trackers where your mortgage rate will track the Bank of England base rate for the entire mortgage term.
Retirement-interest only mortgages (RIOs) are a relatively new set of products designed to help older borrowers who may struggle to get a standard residential mortgage. They allow you to borrow against your property and only pay back the interest (and not the loan itself) each month.
There are two main types of self-build mortgages - arrears stage payment and advance stage payment.
Arrears Stage Payment
Most commonly, funding will be released in stages after the construction of each section is completed. A valuer will normally visit the site before the payment is released. With an arrears stage-payment you may need a loan to cover the work before your mortgage is released, so you must factor this into your decision.
Advance Stage Payment
Sometimes it’s possible to get a self-build mortgage where the lender releases the money before you pay each bill. This is not usually offered by mainstream lenders so you may be limited to specialist providers.
Without an employer to vouch for your income, being self-employed means you’ll need to pass the lender’s affordability tests in the same way as any other borrower by providing additional evidence of your income than other borrowers.
A bridging loan is a short-term finance option for buying property. It 'bridges' the financial gap between the sale of your old house and the purchase of a new one.
If you're struggling to find a buyer for your old house, a bridging loans could help you move into your next home before you've sold your current one.
This would mean that you'd own two properties for a short time, potentially leaving you with a large amount of secured debt if it takes a long time to sell your existing property, if the buyers withdraw completely, or you sell your home for less than you expect.
Remortgaging is when you take out an additional or different mortgage on a property you already own. For example, you may remortgage when your current mortgage deal is about to come to an end to see if you can find a better rate or more suitable product, or you may remortgage to fund some improvements to your home.
Remortgaging is something we should all think of regularly to make sure we are still on the best mortgage deal.
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