Mortgages are one of the largest single transactions in most people’s lives. Buying a property can be a stressful and time consuming experience, although nowadays the financing of a mortgage is a case of finding and selecting the most suitable mortgage, rather than simply accepting a lender’s offer.
Banks, building societies, and smaller niche lenders compete for your business, all offering a variety of interest rate deals, associated fees and other enhancements to attract borrowers.
The main methods of repaying a mortgage are capital and repayment and interest only. It is also sometimes possible to set this up using a combination of the two. A description of these methods is provided below.
This method ensures that the mortgage is repaid at the end of the term providing all payments are made on time and in full.
Traditionally the preferred product for repaying the capital of an interest only mortgage was a mortgage endowment policy (which included a set amount of life cover) – although more recently customers are using Individual Savings Accounts (ISAs) and pensions to build up a sufficient sum and taking advantage of the tax breaks offered by these products.
The help we offer you
If you’re looking for advice and practical help in getting the mortgage that meets your needs and financial circumstances, then we’re here and ready to help. Taking out a mortgage is a major financial commitment, and we understand how important it is to get the right mortgage. It’s not just about taking out a sizeable mortgage, it’s also about getting the most suitable mortgage for your individual circumstances.
Rising property values and a booming lettings market have meant that many lenders have developed mortgage products tailored to the needs of would-be landlords. Although the tax treatment of rental income and stamp duty has recently changed, lenders are still offering competitive mortgage products to those entering the buy-to-let market. So, if you’re looking to become a landlord, we can advise you on the right mortgage for your needs.
The Financial Conduct Authority does not regulate some forms of Buy to Let mortgages.
Commercial finance requires a tailored approach, and we offer in-depth experience and expertise in this area. Commercial mortgage rates are not standardised in the same way as residential mortgages are, instead the rate offered by a lender reflects the strength of the proposal put forward, and that’s where we can offer valuable help and advice.
The cost of borrowing can be a significant cost for any business, so it’s important to get the right impartial advice, and a mortgage on the right terms and at competitive rates.
The Financial Conduct Authority does not regulate some forms of Commercial Mortgages.
Moving house can be an expensive and stressful process at any age. Many older people would prefer to stay put to and benefit from the ‘equity’ or value tied up in their homes, and equity release schemes allow them to do that.
There are various types of plan available to home owners aged 55 and over. With Lifetime Mortgages where the interest is rolled up, a loan is taken out on the property to provide a lump sum, an income or a combination of the two. No interest is payable until the home is sold, this could be when you and your partner have both died or gone into long-term care.
With a Lifetime Mortgage with a drawdown facility, you can take your cash in stages. This can be useful as it gives flexibility and the reassurance that you can access further funds at some point in the future should you need them. Interest is also only charged on funds when they are drawn down.
More and more people are using equity release to help enjoy a comfortable retirement, pay down debts, boost their income or plan capital expenditure.
Professional advice is essential; equity release isn’t the right solution for everyone as these schemes are expensive and inflexible. Releasing cash from your home reduces the value of your estate and the amount of inheritance you leave, so you should involve your children and dependants from the outset.
Before you start looking for a property to buy, it makes sense to take advice. We can help you work out how much you’re likely to be able to borrow, and give you useful hints and tips that will help you prepare for the mortgage application process. We know what’s happening in the market, so we can help you make your mortgage application to the most appropriate lender when the time is right.
Before you can make your offer on your next home, you’ll need to have an Agreement in Principle from a mortgage lender that gives an indication of how much you can borrow. We’ll explain the process, and offer advice on the appropriate level of deposit you’ll need to make sure you get the most suitable mortgage.
In some cases, homeowners can save hundreds of pounds a year by moving their mortgage to a more attractive rate. Remortgaging can also work if your property has increased in value and you want to release some money from the equity tied up in your home, or if you want to reduce the term of your mortgage by increasing your monthly payment.
You should be considering a residential remortgage if any of the following apply:
- You are coming to the end of your initial rate (for example, the end of your fixed period) and the value of your repayments are about to increase.
- You are on your lender’s standard variable rate (SVR).
- You would like to release equity to do improvements to your property.
- Your circumstances have changed, or your property value has increased and you want to improve on your initial terms.
- You would like to release equity for investment purposes or to clear debts.
- You would like to reduce your mortgage.
- You are planning to move house but would like to keep and let your current property.
It’s important to be prepared, and to have certain information to hand such as who your current lender is, what your rate is, when it expires and whether they are any early repayment charges payable. You should also speak to your current lender to see what they can offer.
One of our expert brokers will guide you through exactly what’s possible, how much it will cost and how much you could save.
Or maybe you need a larger than normal mortgage, say for over £1m. If that’s the case, then we can advise you on lenders and private banks we use which specialise in catering for larger, more complex financing deals.
The above will be subject to a mortgage valuation. A mortgage valuation is undertaken by your lender to assess whether the property is sufficient security for your loan. You may also require a solicitor to complete the conveyancing on your new mortgage.
By working with us, you benefit from our impartial advice and knowledge of the current mortgages available from a wide range of lenders, so why not get in touch?
We don’t tend to publish mortgage rates on our website. In most cases rates are negotiable and based squarely on the individual circumstances of the borrower, their plans, assets and income.
Firco is an independent mortgage broker that has strong relationships with the key lenders in the UK mortgage market, including those private banks who do not have a high-street presence. We arrange bespoke mortgage solutions for our clients, providing a tailored one-to-one advisory service, delivered face-to-face or remotely, depending on what suits you.
Please click on ‘Become a Client, Enquire Now’ at the bottom of the page and complete the enquiry form and we will normally contact you within the same working day during business hours or if you would prefer us to contact you outside normal business hours then please advise and we will quite happily do so. Alternatively you can email us with details about your requirements to firstname.lastname@example.org or call us on 0151 372 0388
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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