Information on terms and structure of mortgages and how they are calculated
The next step in the process is to arrange a mortgage, if the buyer has not already done so.
Finding the right mortgage can be tough especially when there are so many products on the market at present.
A mortgage can either be obtained directly from a lender such as a bank or building society or from a mortgage broker or financial adviser. Read more
Before commencing with making an offer buyers should find out about the property’s leasehold status, for example:
This means the land on which the property is built is part of the sale.
This means the land on which the property is built is not part of the sale and potential buyers will have to pay ground rent to the owner of the land. In addition to the ground rent an annual service charge may be payable. Read more
Mortgage lenders can charge interest in a variety of different ways and these are the final.
The tracker rate mortgage:
Most lenders offer this type of rate as they are by far the easiest to understand.
This is very similar to a variable rate mortgage, but it tracks the bank of England’s base rate or the London Interbank Offered Rate (LIBOR) base rate (whether they rise or fall). Read more
As well as deciding on a repayment method, borrowers need to look at the different interest rate products on offer.
The fixed rate mortgage:
With a fixed rate deal the amount repaid each month is at a fixed interest rate for a specified period of time, irrespective of changes in the bank of England’s base rate. This is usually around 2 to 5 years, but many lenders are now offering longer terms such as 10 years. Read more
A mortgage is a loan borrowed to buy a property. Then the money is paid back over a fixed period of time, as well as accrued interest. Most banks and building societies offer mortgages, as well as specialist mortgage lending companies.
In a hugely competitive market, building societies and banks are continually updating and extending their range of mortgages. Read more
Once all offers have been made and the seller has decided which buyer to go with it is time to move on to the last and most important stages.
Most property experts advise that sellers should budget for legal fees of between 0.5% and 1% of the property’s value. Read more
Borrowers have to pay interest on any debt and mortgages are no different!
The discounted rate mortgage:
A discounted rate mortgage is usually aimed to attract new customers such as first time buyers; this is because it gives them a little breathing space at the start of the mortgage term. This can help them to recoup money they may have paid out on fees and solicitors. Read more
Choosing an estate agent can be fraught with risk, it is therefore vital that sellers look at a variety of agents before deciding on one. Read more
It is worth first time buyers noting that at the present time 100% mortgages are virtually a thing of the past and besides starting off with no equity in the property leaves buyers in a very vulnerable financial position.
There are some fairly obvious benefits to having a sizeable deposit when starting the house buying process. The most obvious one is that it will make it much easier to get a good affordable deal. Read more
A mortgage is the biggest financial commitment anyone will ever have and if the unthinkable ever happened, how would a family cope with a large debt and a reduced income.
Life insurance can be very low on people’s lists of priorities when they are in the process of buying a home. Read more