Why are you borrowing?
First time buyer
Things are difficult for first time buyers with high property prices and mortgages hard to obtain.
You will need at least a 10% deposit and the better the loan to value ratio, the better deal you can get, so save for a deposit - it will make your mortgage easier to get and cheaper too.
Re-mortgage
Sometimes staying with your current lender is not the best way forward. Lenders will often offer better deals to new customers than they do their existing customers. Re-mortgaging means moving your current mortgage to a new lender.
Moving Home
Even if you are tied into a mortgage deal, you can often take this with you to your new home. This is called ‘porting’ your mortgage and borrowing extra. If you are not tied in a new deal may be the best way forward.
Raising extra funds
Your existing lender can offer additional advances for capital expenditure. There are occasions when this must be done directly or the Broker can assist, it all depends on the lenders and amounts involved. It is vital that you seek advice before doing this.
Buy to Let
Usually only available to homeowners, a Buy to Let Mortgage is a mortgage that allows you to buy a house and let it out to an unrelated 3rd party. The property must be let out on a commercial basis and friends and family are not generally allowed. There are other responsibilities that as a landlord you must fulfil and this needs reviewing fully before proceeding with.
For this market you will need at least a 20% deposit preferably 25% but these mortgages are more assessed on the property’s ability to generate enough rent to cover the mortgage as opposed to the applicants income - although the question is usually asked.
These mortgages are generally taken out on an interest only basis.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice. The precise amount will depend
upon your circumstances, but we estimate that it will be £500.
The Financial Services Authority does not regulate some forms of buy to let.
DTE Risk & Financial Management Limited is Authorised and regulated by the Financial Services Authority
Registered office: DTE House, Hollins Mount, Bury BL9 8AT Company number 01967512 (England)