A mortgage is a loan against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Equity release may require a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.
The Financial Conduct Authority does not regulate commercial mortgages and most forms of buy to let mortgage.
The Mortgage Process
The first step in buying your new home or re-mortgaging is to obtain a ‘Decision in Principle’ so that you know exactly what you can borrow.
Next steps include:
1) Making a formal mortgage application to include the valuation/survey.
2) The Mortgage Offer.
3) Offer to completion.
At Mortgages with Joy we are here to help you every step of the way with friendly impartial advice.
We even complete your paperwork for you, to make the process as simple and stress free as possible.
We can help you with the following types of mortgages:
• First time buyer mortgages
• HomeBuy scheme mortgages
• Re-mortgage deals
• Buy to let mortgages
• Shared ownership mortgages
• Equity release mortgages
• Retirement Interest Only Mortgages
• Commercial mortgages (we act as introducer's only)
• 2nd charge mortgages (we act as introducer's only)
Click here to arrange a FREE initial consultation for any mortgage product, or call us to find out more
Types of Popular Mortgages
Variable Rate/Standard Variable Rate Mortgages
With this type of mortgage, your monthly repayments are linked to the mortgage interest rate charged by your lender. Therefore if your mortgage rates increase or decrease, so do your monthly repayments. The changes are calculated to make sure the loan will still be repaid within the agreed term.
For this type of mortgage, your mortgage rate follows the Bank Of England base rate by a specific percentage difference. However, lenders often reserve the right to vary the percentage difference if it is in their interest to do so.
Some lenders have their own bank base rate tracker, which follows their own base rate by a specific percentage difference & can fluctuate up or down if it is in their interest to do so. This type of product although a base rate tracker can vary at a different rate to the Bank of England base rate trackers & do not have to be the same.
With a LIBOR Tracker, your mortgage rate is linked to the London Inter Bank Offered Rate. The rate that you pay will be a percentage above the LIBOR rate. The lenders adjust their pay rate for your mortgage on a quarterly basis based on the prevailing LIBOR rate, so changes are reflected quickly in the amount of monthly payments that you make. In effect, your monthly repayments could change every 3 months.
This is a flexible type of mortgage that gives you the option to link your mortgage to your savings account and/or current account. The amount you owe on your mortgage is reduced by the amounts held in your linked accounts before calculating the interest due. As the amounts in your linked accounts goes up or down, you are charged more or less interest accordingly. There is also the flexibility in being able to make regular or occasional overpayments to pay off your mortgage sooner.
Fixed Rate Mortgages
With a fixed rate mortgage, the rate is set at a fixed percentage of the amount borrowed for an agreed period of time. These mortgages allow you to plan your finances in the knowledge that your mortgage payments will remain the same each month for the period of time that your mortgage is fixed for. Ie 2, 3 or 5 years would be typical.
Capped Rate Mortgages
These are variable rate mortgages, with a specified maximum interest rate that can be charged, for an agreed period. Therefore whilst your monthly payment may vary, you know the maximum level it can go up to and will be protected against any further interest rate increases.
Discounted Rate Mortgages
This is a variable rate mortgage, with an agreed interest rate reduction over a set period of time. After the initial period is over the rate generally reverts to the lenders standard variable rate.
Retirement Interest only mortgages (RIO)
Retirement Interest Only Mortgages (commonly referred to as RIO Mortgages)
These types of mortgages have increased in popularity over the past year with more lenders entering the market.
RIO Mortgages may suit the needs of many older borrowers (who are typically 55 plus) especially those with an interest only mortgage that’s coming to the end of its term without a repayment vehicle in place.
RIO mortgages allow older borrowers to take an interest only mortgage that doesn’t have a set end date and pay monthly mortgage interest until a specified ‘life event’, which is usually when they die, or go into long-term care. At this point the loan is repaid through the sale of their property. Unlike a Lifetime Mortgage, there isn’t the concern of rolled up interest eating into the remaining
Find out which mortgage is suitable for your needs.
Contact Joy for a FREE initial consultation and make your dream a realisation.