A Homeloan mortgage refers to a loan secured against the property you live in. This mortgage is normally secured as a “1st Charge” on the property (if anything goes wrong with your finances, the lender will get his money back “First!” Should you default on any payments, the lender will have the right in law to, ultimately, repossess your property. A homeloan mortgage is the same as a homeloan remortgage the latter being taken out at a later date with the new mortgage normally repaying the original loan to secure a better deal and/or more money (for improvements, to buy “Buy to Let” property etc.) N.B. “Second charge” loans should be avoided wherever possible – they are expensive and generally not necessary for most clients. Choosing the right mortgage to suit your needs is almost as important as choosing the right home. In deciding on what type of mortgage to recommend we have to consider many factors :-
These are just a few of the considerations we have to make when assessing your enquiry. To help us in this process we will ask you to complete a detailed “Fact Find” about yourself. This tool not only helps us but it will prompt you to evaluate your short and long term goals, realistivcally and objectively. Accelerated Mortgages are directly authorised by the FSA. With this information to hand we will then source the best product to meet your targets. This means that we are not tied to a selected panel of lenders but have access to the FULL marketplace. We use internet based ‘Sourcing Systems’ which are updated daily, ensuring we know what the latest and best deals are. (Beware of amny brokers who calim independence and sourcing from the “Whole Marketplace” – they ofen use just a panel of say 12-20 lenders only! There are various types of mortgages, the most simple being the VARIABLE RATE mortgage, in this instance the lender will calculate a rate of interest they are prepared to lend at and this will fluctuate with interest rate movements. Some clients like to have peace of mind and know exactly what their monthly outgoings will be, for them there are FIXED RATE mortgages. Just as the name suggests the lender will offer a rate of interest which is fixed for a specific period of time (1,2,3,5 or more years) At the end of the fixed term the interest will revert to a pre agreed rate – this is usually the “Standard variable rate” Recently TRACKER RATE products have become more poular. These are where the lender will agreed to set the rate at an agreed margin above or below the Bank of England Base Rate (BBR) – For the life of the loan. As the BBR fluctuates so does the rate charged to your mortgage. In conjunction with these lenders are offering DISCOUNTED TRACKER RATES where the lender will agree to discount your rate by a set amount for a specific period of time. Other types of mortgages are available and their competiveness very much depends on the prevailing interest rate trends at the time of application. OFFSET MORTGAGES have recently gained publicity as they offer an effective way of reducing your interest charges with increased flexibility. For an offset mortgage to work as best as possible you have to ‘pool’ all your debts (including your mortgage) with all your savings. As this will reduce your overall debt, it reduces your monthly interest charge. Often the lender will set a ‘Credit Limit’ and allow capital repayments. You can then use the account as a drawdown facility to meet any expenses as they occur. This type of mortgage is well suited to Portfolio Landlords looking to raise deposit monies at short notice. Finally you should always have a “game plan” for the eventual repayment of your mortgage. Accelerated Mortgages have many years of experience and can advise you on your options to ensure the mortgage is repaid when it is most convenient for you to do so © Peter Willingham 2007
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Your home and indeed your investment property may be repossessed if you do not keep up payments on your mortgage or any other loan taken out on it.  |
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