Your existing mortgage product may be finishing in the next few months or you may feel you want to review what you are paying at present.
Now is a good time to consider your options as lenders are keen to attract more business. Different lenders will consider different clients types.
At Gatehouse we can help you and have access to a comprehensive range of mortgages from across the market including some products that are not available direct from lenders on the high street.
We can also help manage the whole process by liaising with the Estate Agents, Solicitors, Surveyor and Mortgage Lender.
Please contact us for more information and to arrange a free initial meeting.
How much mortgage can i have?
The amount you can borrow will vary from Lender to Lender.
What will my monthly payments be?
- They will take into account your income and then take also into account your various personal and living expenses.
- The Lender will then look at what effect possible interest rate rises would have on you and any potential lifestyle changes.
- This then helps the Lender to access what level of monthly mortgage payment you can afford.
Your monthly mortgage payments will be determined by:
How much money do I need to buy a property?
- The amount you borrow
- The interest rate
- The numbers of years you borrow the money over
The amount of money you need to purchase a property will depend on the purchase price.
You will need to budget for a number of costs including:
Different types of mortgages
- Mortgage Arrangement Fee
- Valuation/Survey Fees
- Legal Fees
- Stamp Duty
- Broker Fee
There are many options to consider when applying for a new mortgage.
Options to consider are:
Standard variable rate (SVR) is the interest rate a borrower is charged on their mortgage by the lender if they are not on a specific mortgage deal. The rate is subject to fluctuations i.e. the monthly payments can go up & down. The lender does not usually charge an arrangement fee at the outset, or early repayment charges when the mortgage is repaid.
Tracker - Tracker mortgages are variable mortgage rate schemes, but instead of the interest rate you pay being based on your chosen lender variable rate 'it 'tracks' an index, such as LIBOR (London interbank offered rate), or more commonly Bank of England Base Rate. The Interest rate you pay is a set margin above or below the rate that is being tracked, depending on market conditions, and it changes as the rate moves. Currently, with bank of England Base rate so low, the margin is usually above that rate. With a Tracker rate your monthly mortgage payment increases if the rate being tracked increased and vice versa. At the end of the product period, the interest rate will usually revert to the lenders standard variable rate, which currently (December 2016) usually results in a higher monthly mortgage payment. There may be initial arrangement fees from the lender to set up this type of mortgage and early repayment charges if the loan is redeemed within the scheme period.
Fixed Rate - A fixed rate mortgage fixes your monthly mortgage rate for a set period of time, usually between 1 and 5 years. At the end of this time, the interest rate will usually revert to the lenders standard variable rate. This type of mortgage is popular with clients who like to have stability in their mortgage outgoings for a given period of time. Unfortunately you will not benefit from any reduction in interest rates. There may be initial arrangement fees from the lender to set up this type of mortgage and early repayment charges if the loan is redeemed within the scheme period.
Discount - A Discount Mortgage has an interest rate where a discount is applied to the lenders standard variable rate. As the lenders standard variable rate moves up or down the discounted rate moves up or down by the same amount. Discount rate mortgages are often offered for a set period of time, usually between 2 and 5 years. There may be initial arrangement fees from the lender to set up this type of mortgage and If you redeem your mortgage during the discount period you would normally have to pay a redemption penalty to the lender.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We will charge a broker fee of between £0 and £275, payable on production of mortgage offer. The amount we will charge is dependent on the amount of research and administration that is required.