Mortgages
Considering a new mortgage or changes to an existing one? As it’s likely to be your largest financial commitment ever, we strongly advise seeking professional help and advice.
By obtaining independent advice, you can access the most suitable solutions and best rates from all lenders in the marketplace.
Our team of highly experienced mortgage advisers have access to the UK’s leading lenders, including exclusive products not available on high streets or comparison sites.
Regardless of your individual circumstances, we can help you find a mortgage that meets your needs perfectly.
Have you reviewed your rate lately?
Give us a call to discuss your options
Independent Advice
Obtaining independent advice is crucial when it comes to your mortgage. It gives you access to the most suitable solutions from all lenders and the best rates and offers available in the marketplace.
Our team of highly experienced mortgage advisers can provide you with such independent advice. We have access to the UK’s leading mortgage lenders, including exclusive products that cannot be found on the high street or comparison sites.
No matter what your individual circumstances are, we can help you find a mortgage that fits your needs perfectly. Our advisers will take the time to understand your situation, preferences, and goals before presenting you with the most appropriate options.
Our advisers have many years of experience providing mortgage guidance and extensive knowledge of each lender’s criteria. They can assist you in obtaining the most competitive rates for:
- First Time Buyers
- Remortgages
- Home movers
- Adverse Credit Mortgages
- Buy to Let Mortgages
- Offset Mortgages
- Equity Release/Lifetime Mortgages
- Flexible Mortgages
We’re there for you
Buying a property or moving can be an overwhelming process, especially when it comes to understanding the various types of mortgages available, repayment options, terms, and costs. That’s where we come in.
At Trevor Downing IFA, we have a team of fully qualified Independent Financial Advisers who can guide you through the entire process. We can help you understand the different types of mortgages available, such as fixed-rate, variable-rate, and interest-only mortgages. Our advisers will also provide you with valuable insights into repayment options and terms, helping you make an informed decision.
In addition to mortgage advice, we can also provide you with guidance on other aspects of owning your own home. Our advisers can help you find adequate protection for you and your loved ones, such as life insurance, critical illness cover, and income protection. We can also help you plan for the future by offering retirement planning, investment advice, and inheritance planning.
Let us be your trusted guide through the home buying or moving process.
Here are our Top Tips for First Time Buyers:
Budget accurately
Be realistic about how much you can afford to spend on a house and ensure the intended mortgage is affordable. Do not forget to allow for furnishings, and remember older properties may require extensive work, such as re-flooring, tiling or renewing the wiring. Make sure you budget for these likely expenses in addition to the purchase price, along with other fees such as conveyancing and stamp duty.
Ask for a second opinion
When buying for the first time, there may be a number of details to look out for that you may not be aware of. Always take an experienced home buyer with you when viewing a property. If this is difficult to arrange, make sure you at least get some assistance at the second viewing stage.
Remember the bills
If you have been used to living at home with your parents, remember to budget for expenses such as council tax, gas and electricity bills, boiler servicing, and other home repairs.
Consider Council Tax
Make sure you know what the likely council tax charge will be in your property. The selling agent should be able to help you.
Look at the local area
Even if you do not have children, remember that property in the catchment area of good local schools will always be much easier to sell on. Also, write down a list of local amenities which are important to you (shops, gym, cinema etc). Before making any final decision about where to move to, take a stroll or bike ride around the local area to see what’s available to you.
Speak to your motor insurer
If you have a car, your insurance premium may increase if you move to an area with a higher crime rate or are trading off-street parking for on-street parking.
Check transport links
Consider the availability of public transport services, like local bus routes or the frequency of train services from your nearest station. Even if you drive everywhere, this information will be useful for anyone coming to visit you who does not drive.
Think about commuting time
Commuting can be one of the biggest household expenses. Since you are likely to be spending much more time on domestic chores and/or DIY, minimising your commuting distance could be important. If a property is more expensive nearer to your place of work, make sure you weigh up this additional expense when compared to the costs and time of commuting.
If you cannot buy the property outright you will need to consider a Buy to Let mortgage. When it comes to this type of mortgage there are several differences to be aware of.
Normally a lender’s decision about whether to offer a mortgage or not will be based on the rental potential of the property as well as your own income, though in some cases, your income may not be considered at all.
Usually, a minimum of 20% to 30% of the property’s value is required as a deposit, which is often higher than the deposit required for other types of mortgage, and you can expect Buy to Let mortgages to have higher interest rates applicable to them. It is also worth mentioning that there is an additional 3% in Stamp Duty to pay if you are buying a second property whether as a home or for purpose of letting.
As well as mortgage costs, potential landlords should carefully consider the costs of owning the rental property itself. These additional costs may include:
- Property Maintenance. The upkeep of the property itself, such as repairs to appliances, and redecoration that may be required before a property can be let to new tenants.
- Letting Agent fees. Though it varies, letting agents normally charge around 10% of the monthly rental income for managing tenants. If you need full management of your property, it is not unusual for these costs to be much higher, typically around 15% of monthly rent.
- Ground Rent/Service Charges. These costs only apply to leasehold properties.
- Legal insurance. For example, in the event of non-payment of rent, anti-social behaviour or damage to the property. Legal insurance can be used to cover costs involved in pursuing eviction.
- Buildings/Contents Insurance. The property will need buildings insurance, and any furnishings provided as part of the rental agreement will also need to be insured with a suitable contents insurance policy.
- Furnishings. If the property is to be let as furnished, then you will need to consider the initial cost of providing the items needed to furnish the property.
- Appliance Safety and Inspection. Certain appliances will need to be regularly inspected and serviced to ensure they are safe to use and compliant with current regulations. Examples include Gas Boilers and Gas Fires.
When choosing a letting agent to act on your behalf, it is wise to choose one that is a member of The Association of Residential Letting Agents (ARLA). All members of the ARLA participate in a bonding scheme to protect both rental income and tenants’ deposits.
Types of Mortgage
First Time Buyers
Buying a home for the first time can be an exciting but daunting prospect. There are so many things to think about before you have even considered the magnitude of mortgage products, rates and lenders to choose from.
Remortgages
Remortgaging means switching your mortgage to another deal with another lender without moving property.
Some people switch mortgages because it will work out cheaper for them. For example, the introductory discounted interest rate may have finished with your current lender, and you might get a cheaper deal with another lender.
Other people remortgage to consolidate their debts.
It is worth noting that a remortgage is not always the most suitable option. Sometimes any saving made by securing a cheaper interest rate can be outweighed by the fees incurred in setting up the new mortgage and converting unsecured debt to secured debt may not be in your long-term interest.
If you plan to switch your mortgage, remember to look at the overall repayment period too. You may be able to pay less monthly but check the final repayment date of the new mortgage to ensure it’s not longer than your current deal.
On the other hand, you may be able to find a new mortgage deal with your current lender – and it may even work out cheaper to do so. We can guide you through the remortgaging process and ensure you understand all of your options before making a decision.
Home Movers
Often, home movers overlook the fact that they may be able to find a better deal with a new lender rather than just going through their existing lender.
We will look at the options available across the market to ensure you get the best solution. This is often a good time to review the term of your mortgage, whether to go for a fixed rate or a variable rate and how much you need to borrow taking into account the cost of moving.
On the other hand, you may be tied into a fixed rate that can be ‘ported’ to your new property to avoid early repayment penalties. Any additional lending required could be set up on a new product or rate if that is appropriate.
Buy to Let Mortgages
These types of mortgages are designed for property investors and private landlords who do
not intend to live in the purchased property.
Commercial buy to lets are not regulated by the Financial Conduct Authority (FCA).
Most residential buy to let mortgages are not regulated by the Financial Conduct Authority (FCA).
Buying additional property for the purpose of letting it to earn rental income can be risky and complicated since there is no guarantee that house prices will rise, nor that rental income will be uninterrupted.
That said, letting a second property to tenants could return respectable financial rewards over the longer term, but it is important to properly consider the risks, as well as rewards, involved in ‘Buy to Let ‘ first.
When buying a rental property, you will need to decide whether your investment objective is income or capital growth. Are you looking to cover the monthly costs and perhaps make a profit to supplement your income? Or are you looking to make a profit later, upon the sale of the property, with the assumption your property value will increase in value over time? The decision may affect the type of property you purchase, its location, and the risk involved since there is no guarantee that property prices will rise.
lending required could be set up on a new product or rate if that is appropriate.
Offset Mortgages
With an offset mortgage, you can potentially reduce the amount of interest you pay by offsetting a credit balance against the mortgage debt. Some lenders facilitate this through a single account (usually known as a current account mortgage), others offer multiple accounts that allow customers to virtually separate their finances, but whichever the mechanism, the offsetting principle is the same.
Unspent income is offset against the amount of mortgage debt outstanding, so you only pay interest on the net amount owed. For example, if the mortgage balance outstanding is £150,000, but you have a credit balance of say £40,000 in a current or savings account, interest is calculated on the net £110,000.
Normally a borrowing limit applies, and, usually, a borrower can redraw against this limit as the mortgage is paid down. Although limits may be decreased over the term to lock in capital repayments, problems can still arise for undisciplined borrowers who choose to effectively ‘withdraw’ previously made mortgage payments.
However, with good management and discipline, an offset mortgage can result in significant interest savings and facilitate earlier repayment of the mortgage, but it is very important to ensure you are the right person for this type of mortgage.
Adverse Credit Mortgages
In their ideal world, lenders would lend only to those with faultless credit histories, perfect work records and adequate deposits; but money problems can affect anyone. Adverse credit problems can be linked to a loan default, a county court judgement or bankruptcy.
Sometimes people get into debt through no fault of their own and, even if they have been to blame, want to sort things out. Certainly, nobody taking out a mortgage wants to see their property repossessed.
Thankfully, some lenders are willing to provide adverse credit mortgages. Deals are unlikely to match standard mortgages; lenders in the adverse credit market (also known as ‘sub prime’ or ‘non-conforming’) will usually charge higher rates. Although, sometimes, applications with minor credit issues can still be placed with mainstream lenders on standard rates.
Your application will be thoroughly vetted, and the interest rate set according to the ‘risk’ you pose (in the eyes of the lender). You may also be subject to early repayment charges.
Flexible Mortgages
Flexible mortgages recalculate the outstanding capital and interest (the amount you owe) on a daily basis. This allows you to make overpayments when you have money to spare and see an immediate reduction in your loan.
Some also allow you to make underpayments when finances are tight, which will increase the interest you have to pay in the long term.
They may even allow you to take repayment holidays, a complete break from making payments as long as a reserve amount of money is in your account.
Any unpaid interest will be added to the outstanding mortgage; any overpayment will reduce it. Some flexible mortgages have the facility to draw down additional funds, to a pre-agreed limit.
The Trevor Downing Practice is dedicated to providing professional advice to its client base. As a client for over 10 years I can testify to the range and quality of services they provide to individuals. No other professional organisation I know in this area comes even close to matching their advice.
Mortgage FAQ’s
Q. What costs are involved in buying a property?
A. Often people overlook the additional costs involved with buying a property. We can guide you through the expected costs. For example:
- Deposit – this will normally be a minimum of 5% of the property purchase price
- Conveyancing – a conveyancer or solicitor needs to be involved in relation to the registration of the property. Some deals may be available with free conveyancing or you may already have your own conveyancer. Otherwise, it is important to check the cost of this service.
- Surveys – lenders will require a registered surveyor to check the condition and value of the property before they will secure a mortgage against it. Depending on the type and age of the property, the lender may require a basic valuation or an in-depth structural survey. Usually, the lender will only require a basic valuation, but you may still prefer and in depth survey, which we can assist with.
- Moving – you may need to factor in the cost of moving your furniture/possessions, particularly if you are moving long distances.
- Repairs/renovations – don’t forget to factor in any changes/improvements you may want to make
- Insurance – it is very important that you ensure your home is protected and, in most cases, lenders will insist on buildings insurance being in place. However, you should also ensure you have adequate contents insurance and, of course, protection for you such as life insurance and income protection should anything happen to you; after all, you do not want to risk losing your property!
Q. When will I know if I can get a suitable mortgage?
A. Although some lenders offer a ‘decision in principle’ this is just a guide and is not an official acceptance. Once we have completed and submitted your application, you will receive a formal offer which confirms the details of the mortgage they are willing to offer.
Q. How can I find out how much the mortgage will cost?
A. There are plenty of online calculators that will give you an indication of the approximate cost of a mortgage, However, by contacting us, we will be able to gather sufficient information from you to be able to obtain illustrations from a variety of lenders and find the most cost-effective solution for you.
Q. How are meetings for mortgage applications arranged?
A. Most of our meetings take place over the telephone and we will guide you through the entire process, You will never need to visit a lender to make an application.
Q. What type of mortgage is best for me?
A. There is no simple answer that suits all. Everyone’s situation and objectives are different, and we will discuss all aspects with you to establish the most suitable type of mortgage available. We can look at fixed-rate versus variable-rate mortgages, repayment versus interest only, the term or length of the mortgage, incentives available and so on.