How we can help you get things moving
Whether you are a first time buyer, an owner wishing to move to a new house, you want to purchase an investment property¹, or even a holiday home – we are here to help. We can even advise and arrange your remortgage too. Here’s an overview of Mortgage Services we offer:
First Time Buyers Mortgages
It’s often said that purchasing your first property can be an overwhelming and stressful time, but it doesn’t have to be. Moving Experience will guide you through the process of selecting and applying for your mortgage, and we can introduce you to a solicitor¹ ³ to provide legal expertise. We aim to make your life as easy as possible.
Mortgages for Home Movers
So you know how this works because you bought a property 3, 5, 7, 10, or even more years ago? Times have changed and things will have moved on. With Moving Experience to guide you through the financial considerations of selling and buying (such as likely costs incurred when moving) and arranging your mortgage, you’ll realise you’ve no need to worry.
“A mortgage GENIUS. Matt was so knowledgeable and worked incredibly hard on our behalf to source the right solution to a challenging set of financial requirements! THANK YOU MATT. Can’t recommend you highly enough”. CS 2012
Our little guide to Mortgages
The principal reason why some people find choosing a mortgage quite daunting and complicated, is the huge choice of lenders and products available.
When you go shopping for clothes, you will probably have a set of criteria in mind that limits options, such as the type of garment, the colour, size, whether it’s for a particular occasion, budget, etc. Listed below are some explanations of options that you might want to consider, as a starting point, to help you set a criteria when looking for a mortgage, and deciding which fits you best.
The first consideration is how the mortgage is going to be repaid over its term. There are really only two ways of paying off your mortgage. It is possible to arrange a ‘split repayment’ which is a mix of the two methods. The decision about which repayment type is better for you will be based on your attitude to risk.
Repayment / Capital & Interest
Each monthly payment to your mortgage lender consists of interest, and also a contribution toward reducing the capital balance. Over your mortgage term the loan gradually reduces, so that by the end of the term, your mortgage will be repaid as long as you keep up to date with your mortgage repayments.
The monthly payment to the lender only pays the interest on the capital outstanding. The loan therefore does not reduce. A ‘repayment vehicle’ should be in place in order to pay off the outstanding balance in one lump sum at the end of the mortgage term. Types of repayment vehicle include Individual Savings Accounts (ISA), Pension and pre-existing Endowment policies. Depending on the performance of your investment, the repayment vehicle chosen may not provide a sufficient return to enable you to pay off the mortgage in full at the end of the mortgage term. This arrangement is therefore a higher risk option than a repayment mortgage.
*Please note that Moving Experience is unable to arrange or advise you on the suitability of these repayment vehicles.
Variable Rate Mortgage – Borrowers paying the Standard Variable Rate will have their payments increased or decreased as the lender adjusts the standard rate in accordance with market conditions.
Discounted Rate – The Lender offers a discount from the Standard Variable Rate (SVR) for a specific period of time. For example, the variable rate may be 5% with a discount of 1.5%. The initial pay rate would therefore be 3.5%.
Tracker Rate – a variable rate that is linked to the movement of a prevailing rate such as The Bank of England Base Rate or London Interbank Offered Rate (LIBOR). The pay rate will be a set percentage amount above or below the relevant base rate for a specified period of time. For example, 2% above Bank of England rate, currently 0.5% (correct as as 13/04/16 – however this may be subject to change), would mean a pay rate of 2.5%.
Fixed Rate – Interest rate set for a predetermined ‘benefit period’, usually 2,3, or 5 years. Interest will be charged at a variable rate after the benefit period expires.
Capped Rate – A capped rate, like a fixed rate, allows you to budget accurately for your monthly payment. If the variable rate drops below the capped rate, the borrower will make payments based on the lower variable rate. However, should rates increase the payments will be ‘capped’ and not exceed the capped rate.
Please note that availability of products may vary according to market conditions.
This calculator provides a guide to monthly payments and does not guarantee eligibility for a mortgage. Please contact us for a personalised Key facts Illustration.