While the idea to stretch your income to get a bigger fixed mortgage UK is tempting it is certainly not advisable.
The bank or lending company can run credit checks, confirm income with an accountant, or even access your bank account to review your balance over a period of time. Not all lenders will do this; however, they do have the right to check your income is what you claim it is.
The majority of lenders offer mortgages of up to a maximum of 95% of the value of the property, or its purchase price, whichever is lower. Therefore you will need to save up a deposit of at least 5% of the price. 100% mortgages are available but you must weigh up the pros and cons and look into all the costs involved before making your decision.
The main expense is the extra interest you will pay on the mortgage. Although you automatically pay more by borrowing the full amount, many lenders charge you additional interest on 100% mortgages.
Another major cost to take into account is the mortgage indemnity guarantee (MIG) premium. This fee covers the lender for the added risk of advancing larger loans. It is usually applied when the loan is for more than 75% of the property's value and increases with the amount you borrow. On loans over 95% it is usually quite high indeed.
Be sure to check and compare enough lenders before you choose one of them, as different fixed mortgage UK conditions may represent a significant amount of money on the long term.
Keep in mind that there are many mortgage companies out there, and each one of them may offer a unique deal.
If you end up getting a fixed mortgage UK with a sub-prime lender and are unhappy with the interest rate, keep in mind that you can always remortgage again later. Be sure to maintain a good repayment history and keep working on improving your credit rating so you'll be ready when the time comes.
You'll have a property of your own and that's useful because you'll be building equity. In addition to this, as long as you are careful and make your monthly mortgage payment on time, every time, you will be able to enjoy the benefits of improving your credit.
Contact an independent advisor who can guide you in the right direction to the best fixed mortgage UK available in the UK. Buying a property is an excellent investment and it does not seem likelyat the moment that prices will go down.
However, a fixed rate mortgage often comes with higher penalty costs, so if there is a good chance that you will repay the loan before the end of the agreed mortgage term, perhaps considering a mortgage loan that has a variable interest rate but has lower redemption penalties is a much smarter choice.
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TIP: Don't buy a property without full, professional survey(s). Human beings can be perverse; happy to spend £150,000 on a house after a half-hour viewing, but be-grudge spending £500 finding out whether it's worth buying in the first place!
Ask about fixed mortgage UK today!