Ask about mortgage providers today!
We offer free mortgage providers advice at a time and place to suit you. Why not let us take the hassle out of searching the market for you and apply today.
It's a smart move to get as much of a deposit upfront as you can. The interest and insurance on a large mortgage providers loan can really upset your lifestyle in later years, especially if you go through a bad times financially. Some people think 'Hoorah!, I can get a 100% mortgage. I don't have to pay a bean, oh happy day!".
The reality is you are taking cash out of your pocket in handfuls, and putting it in the pocket of your lender. All that is wanted is a bit of saving and scrounging. Fees, insurance and interest can easily double the amount you are required to pay back. In the past people relied on inflation easing the pain: £55,000 in 1978 was worth a lot less in 1998. People's salary had increased, the value of the money had decreased, so the mortgage payments became easier.
Times change. Inflation, at the time of writing, is about 2.5% P.A., as opposed to 6% or more in times past. Salaries have not gone up much in the past ten years; a starting salary is still about £21,000. Result: young folk priced out of the market, and older ones not as comfortable with their mortgage payments as they might have expected to be.
Whether you are buying a new property or changing mortgage providers for re-mortgaging, you need to be sure you can afford the repayments. Mortgage providers weigh up a number of variables calculating how much you can borrow, like the property value, your income and employment status, your monthly outgoings and your credit history. They must first caclulate the risks a particular applicant poses and then make a decision to approve or not. Sometimes the risk is too high and the application is denied.
In some cases, you can find a mortgage provider that will only require a small down payment arounnd five percent. However, this is unusual and most of the time mortgage providers require anything from a ten to twenty percent deposit.
Be sure to seek out and and compare enough mortgage providers before you choose one of them, as different mortgage conditions may constitute a significant amount of money over the term of the loan.
If the agreed payback term is too long, you'll be paying a lot more money in interest, thus the total payment will be higher. Ask a good few mortgage providers for quotes and compare both the monthly payments (to see if they fit your means) and the total payment at the end of the loan term.
TIP: Overpay your mortgage if you can do so without penalty, especially if your payments are re-calculated week-to-week or month-to-month. This means you will incur much less interest over time, and get peace of mind sooner. Get your outstanding amount down, and get on with the fun things in life.
TIP: Don't sign contracts without reading them. As soon as is feasible, before the deal is done, re-read the papers you'll be signing, and make sure you comprehend understand them, so you won't have to sign them in a fluster.