Mortgages

We can help you find the ideal financial solution for your property needs

Need help finding the right mortgage? Looking to re-mortgage? Need advice for a ‘buy-to-let’ investment or an equity release? If so, our partner services are here to help you access whole of market solutions.

Whether you're buying your first home or taking your next step on the property ladder, securing the right mortgage is fundamental. With so many different mortgage deals on the market, selecting the right one can not only be confusing, it can be extremely costly if you get it wrong.

Here at Property Hub, our associate mortgage advisors can walk you through the maze and help you find the perfect mortgage to suit you and your circumstances.

Want to know more about mortgages in a hurry? Please see our quick guide to mortgages below.

  What is a Mortgage? 

A mortgage is a legal agreement by which a bank, building society, or finance business lends money at interest in exchange for taking title of the debtor's property. This is agreed on the condition that the conveyance of title becomes void upon the payment of the debt. Always remember that your home may be repossessed if you do not keep up repayments on your mortgage.

  Down Payment/Deposit

You may have heard people saying "I put down a hundred thousand in cash (down payment) and took out a mortgage for the rest". A deposit or down payment is the amount of money you pay towards the house purchase before taking out a mortgage. This can vary from as low as 5% of the purchase price for Help-to-Buy purchasers but is typically between 10% to 25%.

  Interest Charges

This is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the Annual Percentage Rate (APR). The assets borrowed could include, cash, consumer goods, large assets, such as a vehicle or building. Interest is essentially a rental, or leasing charge to the borrower, for the assets use. In the case of a large asset, like a vehicle or building, the interest rate is sometimes known as the "lease rate".

  Fixed-Rate Mortgage

This is a mortgage that has a fixed interest rate, either for the entire term or a limited term agreed for the loan. The unique factor of a fixed-rate mortgage is that the interest rate for the time period of the mortgage agreement is known at the time the mortgage is obtained. The benefit of a fixed-rate mortgage is that the homeowner will not have to contend with varying loan payment amounts that fluctuate with interest rate movements.

  Buy-to-Let Mortgage

Buy-to-let (BTL) is specific type of mortgage, solely taken to purchase a property which is going to be let out. Lenders will calculate how much they are willing to lend using a different formula to that of an owner-occupied property. They tend to look at the expected monthly rental income to determine the maximum loan available. First-time landlords may also be required to have a separate annual income of at least £25,000. Interest rates and fees that are offered on BTL mortgages are, on average, slightly higher than those for an owner-occupied mortgage. This is due to the perception amongst banks and other lending institutions that BTL mortgages represent a greater risk than residential owner-occupier mortgages.

  Flexible Mortgage

Flexible mortgages allow you to make overpayments on your mortgage when you have extra money available. Extra payments can be made in one lump sum or extra amounts per month. Most flexible mortgages also offer the option of taking a 'payment holiday' by building up a reserve of excess payments. Both these features can help in paying the mortgage off early, or coping with unexpected expenses. A flexible mortgage is usually offered on a daily interest basis, and because you are being offered this flexibility as an extra service you will often pay slightly higher rates of interest compared to standard variable rates.

  Interest-Only Mortgage

A mortgage, were the borrower is only required to pay off the interest which arises from the principal amount that is borrowed. Repayment amounts remain fairly constant throughout the term of the mortgage, because only the interest is being paid off. However, interest-only mortgages do not last indefinitely, meaning that the borrower will need to pay off the principal of the loan eventually. Interest-only mortgages can be useful for first-time home buyers because it allows young people to defer large payments until their incomes grow. At the end of the interest-only mortgage term, the borrower has a couple of options. They can either renew the interest-only mortgage or repay it through standard means, such as entering into a normal mortgage and liquidating investments.

  Remortgage

Remortgaging (also known as refinancing) is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security (equity).
In simple terms, remortgaging your home can fulfil the terms of your existing mortgage contract and allows you to create a new contract with more favourable terms.

  Joint Income

This is the combined gross income of all earning members of a house. Individuals do not have to be related to be considered members of the same household. Joint income applications can be made when all members of a household are jointly ready to apply for credit. Household income is an important risk measure used by lenders for underwriting loans.

  Redemption

When a mortgage is fully repaid by the borrower.

  Repayment Mortgage

A repayment mortgage is a term usually used to describe a mortgage in which the monthly repayments consist of repaying the capital amount borrowed as well as the accrued interest. This is so that the amount borrowed decreases throughout the term and by the end of the loan term, it has been fully repaid.

  Homebuyers Survey and Valuation

A property survey that includes a valuation and should reveal any major faults on a property. This type of survey is generally not as detailed as a structural or building survey, however it does give your mortgage lender a valuation of the property you intend to purchase. It will also outline any major structural repairs that may be required.

  Repossession

Repossession is the process by which lenders can reclaim property from debtors (those that owe money) who have not kept up with their payments or default on the payments.

  Retention

This relates to monies withheld by lenders until certain mortgage conditions are met.

To arrange your free no-obligation, confidential consultation, please call on 0208 459 3333 or email info@propertyhubltd.com today.

Please note that a fee will be payable for arranging your mortgage. Your consultant will confirm the amount before you choose to proceed. Mortgage availability depends upon your circumstances and credit rating.