Mortgage types

First-time buyer mortgages

“YOUR HOME OR PROPERTY MAYBE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY DEBT SECURED ON IT.”

Embarking on the journey of homeownership as a first-time buyer can be a thrilling experience. Whether you are purchasing a property independently, alongside a partner, family members, or friends, it represents one of the most significant and financially impactful decisions you will ever make. In recent decades, a significant increase in property values has made it more challenging than ever to take the first step onto the property ladder.

There are various incentives available that may help reduce costs for first-time buyers. Many options can be accessed through mortgage brokers and may include support with mortgage valuation fees, legal expenses, mortgage application fees, and other competitive mortgage options.

Home mover mortgages

“Should you require a larger residence, need to relocate, or consider downsizing to a smaller property, you may want to explore your options.”

When it comes to home mover mortgages, consider them an extension of standard residential mortgages. They involve applying for a new mortgage as you transition into a new home. A mortgage adviser will carefully assess your personal circumstances to ensure that your new mortgage aligns perfectly with your needs. Choosing the right mortgage is vital to ensure it remains affordable and suits your current lifestyle.

Important redemption fees to consider

Before redeeming your existing mortgage, it is important to consider the associated costs. If you choose to move to a new property while still committed to a fixed rate with your current lender for a specified term, such as two, three, or five years, there may be redemption fees that apply.

When redeeming your mortgage, be aware of the following fees that may apply:

A. Early Repayment Charges (ERC): Fees imposed by the lender if you pay off your mortgage before the end of the agreed term.

B. Exit Fees: Charges that may be incurred when you switch to a different mortgage product or lender.

C. Porting Fees: Costs associated with transferring your existing mortgage to a new property, if applicable.

D. Legal Fees: Expenses related to the legal process of handling your mortgage redemption and transfer.

Understanding these fees can help you make informed decisions when considering your options.

Depending on the terms of your existing mortgage, it may be possible to port your current mortgage to a new property. This option can help eliminate redemption penalties in certain situations.

Remortgaging

A remortgage occurs when you change your mortgage deal by switching to a different lender for more competitive or suitable terms. There are several simple reasons why people choose to remortgage.

Many homeowners choose to remortgage to reduce their monthly mortgage payments, especially when their mortgage rate is due to increase as their 2-year, 3-year, or 5-year tie-in period comes to an end.

Some people remortgage to release money tied up in their property, borrowing more to secure against it. Additional borrowing may be required for various reasons, such as extending their property or helping their children raise a deposit to buy a house.

Help with remortgage costs

Free mortgage valuation, free legal fees, or cash-back towards fees may be available when you remortgage, making remortgaging more affordable.

Free legal fees and free valuation fees are not available on all mortgage products from all mortgage lenders.”
You may have to pay an early repayment charge to your existing lender if you remortgage.
Think carefully before securing other debts against your home.Your home maybe repossessed if you do not keep up repayments on your mortgage.”

Buy-to-let mortgages

You are looking to invest in property and become a landlord, so you need a buy-to-let mortgage. Perhaps you are already a landlord and want to purchase another rental property, or you need to remortgage an existing rental property to raise funds for another purchase. It is also possible that your mortgage deal has ended, and you now require a remortgage to reduce your mortgage payments.

Your property may be repossessed if you do not keep up repayments on your mortgage.
Not all buy to let mortgages are regulated by the Financial Conduct Authority.”

Let-to-buy mortgages

This allows you to borrow money to buy and move into a new home while your existing residence is let out to tenants, which generates an income.

Second home

You need a home for holidays, a split job location, or a place for your child to live while in further education.

Guarantor

As a parent or close family member, you want to help someone else buy their own home by taking on some of the risk of the mortgage and acting as a guarantor. This can require offering your home or savings as security against the loan and agreeing to cover the mortgage payments if the homeowner misses a payment.

Buying property at auction

You want to buy a house at auction, but you don’t have enough cash in the bank to purchase the property.

Commercial mortgage

Commercial loans are related to purchasing, letting, or refinancing commercial properties.

Commercial loans are used to build or refurbish properties.

Bridging loans

Bridging loans might be used to:

  • Buy a property at auction.
  • Refurbish a property and sell it.
  • Refurbish a property and let it.
  • Complete the urgent purchase of a property that would otherwise fall through.
“Commercial mortgages are referred to a master broker. Commercial mortgages are not regulated by the Financial Conduct Authority.”