Mortgage Loan

What Is Mortgage?

A mortgage is a loan that you can take out to purchase a property; that is why it is also called a property loan. It is a loan secured against any kind of property such as land, house, or flat. If you are unable to repay the loan amount, the property loans lender can repossess your property.

What-Is-Mortgage

Typically, you have to repay a property loan in monthly instalments with an agreed amount of interest added on. Most lenders have a mortgage repayment calculator on their website so you can get an idea of how much a debt will cost you.

What-Is-Mortgage
What-Is-Mortgage

How To Get A Mortgage?

Purchasing a home is most likely to be the most expensive single purchase of your life. Therefore, choosing the right mortgage according to your financial situation is an essential part of your house purchasing process. It can take a little longer to get a property loan but getting a mortgage is easy. You can follow these steps to increase the chances of being accepted for a mortgage:

You can get a property loan UK through a broker, from a direct lender or get an online mortgage.

What Type Of Mortgage Do You Need?

There are different types of mortgages, and you should choose the one that best suits your financial situation and requirements.

First Time Buyer?

If you have never owned a home anywhere in the world, this type of mortgage is what you will need. First-time buyers have an opportunity to get 90% to 95% LTV. Knowing that you are a first-time buyer, property loan lenders also offer you small deposits. You can also find options that have small upfront fees.
First-Time-Buyer
First-Time-Buyer
remortgage

Remortgage

It is a mortgage when you already have a mortgage on your property but want to switch to a new one.

remortgage

Usually, people consider a remortgage when their fixed rate or discounted term is at the end, and they do not want to move to the variable rate of their lender.

You can get a low-interest rate, better terms, and save money by remortgaging.

Buy To Let Mortgage

A buy to let mortgage is for those who are looking to invest in property and want to rent it out. These types of property debts are usually interest-only mortgages, and typically you will need a 25% deposit for being approved for buy to let mortgage.
Buy-To-Let-Mortgage
Buy-To-Let-Mortgage

Moving Home Mortgage?

If you already took out a mortgage but want to move to a new home, you may be able to take your mortgage with you, also known as porting, or you may also arrange a new mortgage along with the old one.

Whether you want to take your mortgage with you or want to get a new one and exit the current mortgage, you should always consider the cost of porting or exiting from the deal.

If you are not able to take your existing mortgage, you may have to get a new one. But you should be aware of the charges for exiting your mortgage early.

Fixed Rate Mortgage

With a fixed-rate mortgage, you have to pay a fixed interest rate for a specific period. It means that your monthly payments and interest rate will remain the same during this period.

 

This type of debt can give you peace of mind, and you can also lock a deal in low rates if the rate of Bank Of England is low at that time.

 

However, be mindful that if the base rate lowers during this time, you can not take the benefit of a low-interest rate.

Fixed-Rate-Mortgage
Fixed-Rate-Mortgage

Variable Rate Mortgage?

The interest rate can go up or down anytime in variable-rate mortgages, depending on lenders’ discretion
and base rate. It means that your monthly payment and interest rate can change throughout your loan term.
Variable-Rate-Mortgage

 It may sometimes happen that variable mortgage rates beat the rates of fixed-rate mortgages, but you may also end up paying more.

Two common types of variable-rate mortgages are tracker and standard variable rate mortgages. A tracker mortgage usually charges an interest rate that follows the base rate of the Bank Of England, but it tracks a few percentage points higher. On the other hand, for a standard variable rate mortgage, the interest rate is set by the lender, and it is usually a few points above the base rate.

How Can You Get The Best Mortgage Deal?

To get the best property debt rates, you should think about different property loan options available and what would suit your needs best.
Do-You-Get-A-Mortgage-With-Bad-Credit
Do-You-Get-A-Mortgage-With-Bad-Credit
Bridging Loan Cost

Shop Around

Shopping around is the most essential thing to get knowledge about the mortgage rates of the whole market. You should make a price comparison to find a deal that suits your needs.

Whether you want to remortgage or to look for a debt to buy your first home, we will provide you with a Property
loan comparison to help you find the best deal.
Bridging Loan Cost

Keep An Eyes ON Base Rate:

If you see that the rate of the Bank of England drops or seems to rise in future, it might be a good time to lock a property loan deal at low rates.
Keep-An-Eyes-ON-Base-Rate
Keep-An-Eyes-ON-Base-Rate
Loan-Cost

Fees

You should take into account all the fees attached to the mortgage because they add up to the loan cost and make it expensive.

You should also consider loan terms as you are more likely to pay early payment charges if you want to repay the property loan UK before the loan terms end.

Loan-Cost

Credit Rating

When applying for a new property debt, you should check your credit report. Credit score has a great impact on property loan rates that lenders offer.

You should take steps to improve your credit score so that you can get a mortgage loan at a low rate.

credit-rating
credit-rating
Reduce-Existing-Debts

Reduce Existing Debts

If you have high consumer debts, you will have a few mortgage options available. By keeping debts to a minimum, you can not only have more options, but it can also improve your credit score and allow you to get a loan at a cheaper rate.

Reduce-Existing-Debts

Do You Get A Mortgage With Bad Credit?

It is possible to get a mortgage even if you have bad credit, but you have to pay a high-interest rate. All the property
loan lenders check your credit before granting a loan to know the risks.

The more risks a borrower has, the less will be the chances of getting approval. So you should check your credit score regularly and improve it to get a property debt at affordable rates.

How To Compare Mortgages With Short Term?

You can get a quick comparison of property debt providers with us by following some simple steps: