Mortgages are a complex and diverse product and it's common to have lots of questions.
We've put together a list of some of the most frequently asked questions, however please don't hesitate to get in touch for further information if you have any queries or concerns.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Any other questions?
Give us a call on 0117 959 6474.
What is a mortgage?
A mortgage in basic terms is a long term loan to make payments on a property. The mortgage lender has the option of taking possession of the property and selling it on if the mortgage repayments aren’t made. This is so that the lender doesn’t lose money as they would be making it back from the property sale. Any time you take out a mortgage, the loan is then split into two aspects. One of which is the interest , which is what the lender charges for lending the money. The other is the capital, which is the actual amount of money used to purchase the property.
How much does a mortgage cost?
Mortgage booking fee - £99 - £250 - Not charged on all mortgages
Adviser Fee - We charge up to £500 for the advice and work we carry out for you. This price may vary depending on the property but will never be more than £500.
Arrangement Fee - Anywhere from £0 to over £2,000. This depends on the interest rate being offered
Valuation Fee - £150 - £1,500 depending on the size of the property
Mortgage Account Fee - £100-£300
Higher Lending Charge - Depends on how much your borrowing and how much you put as a deposit. Usually 1.5% of the borrowed sum
Own Buildings insurance - £25-£50 for administration costs to ensure you have the right insurance in place if you do not choose the lender's insurance
Telegraphic Transfer Fee - Around £30-£50
Early Repayment Charges - This varies considerably. If you repay your mortgage within a certain period then you may incur an additional charge
These fees and charges show typical costs that you might incur. You may incur other costs not listed above, and any costs shown above only act as a rough estimate. Your adviser will discuss with you in full detail what costs you will incur when a recommendation is made.
How much can I borrow?
Your current income (which includes regular commission, bonuses, overtime) will determine how much you can borrow. Some lenders calculate borrowing ability by a straightforward multiple of your income while others will work out your net disposable income and then allow you to borrow a percentage of that. We will help you calculate how much you can borrow.
What is a conveyancer?
Conveyancing refers to the legal work required when buying or selling a property. Generally, it is done by either a licensed conveyancer or a solicitor
Is a fixed-rate mortgage right for me?
This depends on your own circumstances. If interest rates going up would leave you uneasy and concerned it may be best to fix your mortgage for peace of mind.
The benefit is that your monthly mortgage repayments are fixed for the duration of the fixed term so you can plan ahead without fear of rising mortgage repayments.
At the end of your chosen fixed rate term, you will normally revert to the lender's current variable rate but you may be able to choose another fixed rate from the selection available at that time. You may have to pay an early repayment charge to your existing lender if you repay your mortgage within the fixed rate period. There is a risk that because your payments are fixed, you will not benefit if interest rates fall.