Independent Mortgage Advice

"A mortgage where your payments change in line with interest rates"

If you want the initial interest rate and you can cope with interest rate fluctuations, then maybe a Variable rate mortgage would suit you.
Variable rate mortgages have been available for many years, and can take three forms:

• A Discounted rate - your monthly repayment goes up and down at a set level below the lender's mortgage rate.
• A Tracker rate - your monthly repayment goes up and down at a set level above the Bank of England’s interest rate.
• A Standard Variable Rate - your monthly repayment goes up and down in line with the lender’s mortgage rate – but without the discount - Standard Variable Rates will usually be fully flexible .

Pros

• The shorter the product period the more attractive the rate becomes.
• Freedom to benefit from Interest rate decreases.
• Standard Variable Rates with usually be fully flexible

Cons

• Some "tie" you in over this period, or even longer (This is called an Overhang)!!! If you leave within this period some lenders impose redemption penalties.
• Stepped products which give you a low rate for the first year, but then every subsequent year the rate goes up, resulting in a high rate in your final year!!
• Make sure that if interest rates do go up, you can continue to keep up the repayments.
• Make sure you speak to us about remortgaging when you’re product period expires to ensure your payments don’t sky-rocket!!

To discuss whether a Variable Rate Mortgage would be right for you, and to avoid the pitfalls of a mortgage, please complete the Contact form or telephone 0845 688 6168 to speak to one of our advisers, and we’ll find you the best product that is most suitable for your needs.

“A mortgage where your payments are fixed”

Concerned about interest rate changes or do you struggle with budgeting – Perhaps a fixed rate mortgage would be for you?
With this type of mortgage, you can fix your monthly payments over an agreed period of time and know that, irrespective of changing rates of interest, the amount you pay will not be affected.

Pros

• By fixing your payments you have the ability to budget as your payments will not change for a specified period of time.
• It’s possible to fix your payments from between 1 and 25 years.
• Fixed rate mortgages are unaffected by interest rate changes.

Cons

• Fixed rate mortgages are usually subject to early repayment charges if you withdraw from the mortgage early, or before the completion of an overhang.
• If interest rates drop you will be tied into your set higher rate - until the end of the agreement, i.e. you won’t see any decrease in your monthly repayments.
• At the end of the fixed rate period you will revert to the lender’s Standard Variable Rate. If rates have risen sharply this may result in a significant increase in your payments.
• Fixed rates tend to be more expensive to arrange.
• Make sure you speak to us about remortgaging when you’re product period expires to ensure your payments don’t sky-rocket!!

To discuss whether a Fixed Rate Mortgage would be right for you, and to avoid the pitfalls of a mortgage, please complete the Contact form or telephone 0845 688 6168 to speak to one of our advisers, and we’ll find you the best product that is most suitable for your needs.

"A mortgage where your payments are subject to a variable rate, but won’t go above a set amount."

Don’t want the restrictions of a Fixed rate mortgage, but don’t feel comfortable with the insecurity of a Variable rate mortgage – then perhaps you should consider a Capped rate mortgage?
This particular mortgage product is a variable rate mortgage which has a fixed upper rate limit (the cap). This means that you know the highest monthly payment that you may have to make. For example, if capped at 6%, the loan will be charged at the prevailing variable rate as long as this is not more than 6%.

Pros

• If interest rates rise, you are protected against your repayments going over a certain level, making it easier to budget.
• Having a capped rate can also allow you to enjoy the benefits of any cuts made to the lender's standard variable rate (SVR).

Cons

• There are not many about, so there is less competition than say fixed or discounted rates
• Unfortunately, in providing security, capped rates are generally more expensive than fixed or discounted rate products.
• Make sure you speak to us about remortgaging when you’re product period expires to ensure your payments don’t sky-rocket!!

To discuss whether a Capped Rate Mortgage would be right for you, and to avoid the pitfalls of a mortgage, please complete the Contact form or telephone 0845 688 6168 to speak to one of our advisers, and we’ll find you the best product that is most suitable for your needs.

"A mortgage where you’re free to make over-payments, underpayments, and take payment holidays when in sufficient credit."

Do you have an irregular income, or is a large proportion of it through bonus payments? Maybe you would like to pay your mortgage off early, but at a pace that suits you? Perhaps you should consider a Flexible mortgage?
A truly flexible mortgage allows you to make overpayments and underpayments, borrow back overpayments and, if you have built up enough credit, to take payment holidays. Interest is usually calculated monthly/daily, so overpayments have an immediate impact on what interest you pay. You can, therefore, significantly reduce the term of the loan and save thousands of pounds in interest payments if you are able to make additional payments during the term of the mortgage.

A flexible mortgage can be ideal for people with an inconsistent income, like the self-employed, especially if the mortgage offers an offset facility or current account facility.

If the flexible mortgage offers an offset facility this can be extremely tax efficient. Rather than having a conventional savings account, you can pay your savings into a savings account set up alongside your mortgage, and only pay interest on the net balance, i.e. If you have a mortgage of £100 000, and savings of £50000, you will only pay interest on £50000 of your mortgage balance.

Pros

• Overpayments.
• Underpayments to the value of previous overpayments.
• Borrow back any previous overpayments.
• Take payment holidays if in sufficient credit.
• Interest is usually calculated monthly/daily, so overpayments have an immediate impact on what interest you pay.
• Usually takes the form of Variable rate mortgages, although can be Fixed rate mortgages, Capped rate Mortgages etc.
• Some lenders provide an offset facility and/or a current account facility.
• Long term – no need to re-mortgage

Cons

• May have higher mortgage rates.
• Offsetting only works if sufficient savings are available.
• Make sure you speak to us regularly to make sure you’re making the most of your flexible features!

To discuss whether a Flexible/Offset mortgage would be right for you, and to avoid the pitfalls of a mortgage, please complete the Contact form or telephone 0845 688 6168 to speak to one of our advisers, and we’ll find you the best product that is most suitable for your needs.

"A mortgage for the purchase of an additional property to be let."

The Buy to Let market has exploded over recent years. More lenders now offer a range of Buy to Let deals all with slightly different terms. Buy to Let mortgages are different from a residential mortgage because the lender calculates the size of your loan not on your income but on the potential rental yield of the property to be let.

Buying a property to let out has now turned into a viable and profitable option for many people. Although the emphasis is currently on longer-term investment rather than making a quick profit, there is still potential for a good return on your initial investment.

Pros

• Potential not only for capital growth, but also for regular income.
• Can take the form of Variable rate mortgages, Fixed rate mortgages, Capped rate Mortgages etc.
• Useful for children attending university.

Cons

• Tax implications
• May have higher mortgage rates.
• Interest rate increases can reduce your rental income.
• Make sure you speak to us about remortgaging when you’re product period expires to ensure your payments don’t sky-rocket!!

For more information please see the SimpliBuytoLet page.

To discuss whether a Buy to Let Mortgage would be right for you, and to avoid the pitfalls of a mortgage, please complete the Contact form or telephone 0845 688 6168 to speak to one of our advisers, and we’ll find you the best product that is most suitable for your needs.

“ A mortgage for those people who can’t prove their income”

With self certification mortgages there is no need to supply accounts, bank statements, payslips or any other proof of income. Instead the self certification mortgage lender will conduct a credit check and credit score, and in some cases may apply for a lender reference or landlord's reference.

The interest rate on self certification mortgages is likely to be a little higher than normal rates. This reflects the extra risk and costs involved in the lender providing a self certification mortgage. The minimum deposit is 15% although lower rates are available to those borrowers that can put down a 25% deposit.

Pros

• No need to supply proof of income.
• Less underwriting involved and so are generally quicker.
• Can take the form of Variable rate mortgages, Fixed rate mortgages, Capped rate Mortgages etc.

Cons

• May have higher mortgage rates.
• Minimum deposit of 15%
• Make sure you speak to us about remortgaging when you’re product period expires to ensure your payments don’t sky-rocket!!

To discuss whether a Self-Certification Mortgage would be right for you, and to avoid the pitfalls of a mortgage, please complete the Contact form or telephone 0845 688 6168 to speak to one of our advisers, and we’ll find you the best product that is most suitable for your needs.

"A mortgage for those people who have a bad credit rating"

They are provided by mortgage lenders who look sympathetically at people in these circumstances. They recognise that many people have had financial difficulties in the past, often through no fault of their own, and as a result shouldn’t be excluded from a mortgage. An Adverse credit mortgage is no different to a standard mortgage, but is only intended for people with a bad credit history. Sometimes referred to as a sub prime or non-status mortgage, a bad credit mortgage is designed to help people get on the property ladder if they have made mistakes in the past such as late mortgage payments. To avoid making these mistakes, click on How to Maintain a Good Credit Rating.

Having a bad credit rating could mean that you have one or more of the following:

• County Court Judgements (CCJ's)
• Loan / credit defaults.
• Mortgage,Rent or Loan arrears.
• Decrees (Scotland).
• Bankruptcy.
• I.V.A.

Pros

• Can take the form of Variable rate mortgages, Fixed rate mortgages, Capped rate Mortgages etc.
• Gives people access to a mortgage who have had problems in the past.
• Significantly smaller than the rates on your credit card should you choose to remortgage.

Cons

• May have higher mortgage rates.
• May have higher fees.
• Often come with extended tie-ins
• Make sure you speak to us about remortgaging when you’re product period expires to ensure your payments don’t sky-rocket!!

Alternatively, to discuss whether an Adverse Mortgage would be right for you, and to avoid the pitfalls of a mortgage, please complete the Contact form or telephone 0845 688 6168 to speak to one of our advisers, and we’ll find you the best product that is most suitable for your needs.

"Moving your existing mortgage on your current property to another lender"

Re-mortgaging is essential when your existing mortgage product ceases, and you revert to the standard variable rate. Should you fail to do this, you could well find yourself paying more than necessary.

There are thousands of rates to choose from in the UK market, which means that finding the mortgage to suit your individual requirements can be very confusing, especially if you are looking for a fee free re-mortgage deal.

Pros

• Hassle free and cheap to implement with the help of our services.
• Can take the form of Variable rate mortgages, Fixed rate mortgages, Capped rate Mortgages etc.
• Will potentially save you money.

Cons

• You will forever be known as a ‘mortgage tart’!!

For more information please see the SimpliRemortgage page. Alternatively, to discuss whether a Re-Mortgage would be right for you, and to avoid the pitfalls of a mortgage, please complete the Contact form or telephone 0845 688 6168 to speak to one of our advisers, and we’ll find you the best product that is most suitable for your needs.