Secure your dream home with stress-free mortgage advice.
Mortgage lenders over the last few years have changed the way in which they lend. One lender may decline you while another one will consider you the least risk. Lenders change their criteria as and when business volumes dictate which all leads to confusion, confusion for the industry and confusion for the borrower. At Fosters Mortgages we do not like confusion, we do not like to confuse people and we like to keep everything plain and simple. That is what makes us different.
Each mortgage is different, different terms and conditions. The lowest rate is not always the cheapest or most suitable. We could write a book on all the differences between lenders and products but that would just cause even more confusion. Dealing with mortgages every day we understand the differences and are able to explain in simple terms how any conditions may affect you and if the mortgage is suitable at all.
The biggest debate at the moment is should I fix my mortgage or take a tracker rate or stay on my lenders standard rate? Well the answer for one person maybe different to the answer for another and only once we sit down and understand your requirements would we be able to make an informed recommendation. We wont be able to tell you what is going to happen to interest rates but we can certainly explain how any changes would affect you and your mortgage.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
Tracker rates
Tracker mortgages tend to start attractively low and follow the bank of Englands interest rate. Periods from 1 year to the entire term (known as lifetime trackers) of the mortgage! Great when rates are falling and low but will increase with interest rate rises. Harder to budget with but can give you a lower monthly payment than a fixed rate when rates are dropping.
Fixed Rates
Fixed mortgage rates are a great way of being able to budget monthly as your repayments are set at a certain amount for a certain period. This can be anything from 2 years to the term of the mortgage and will give you peace of mind and protection from any increases in interest rate rises. Good when rates are rising but will look less attractive if rates start to drop.
Variable Rates
Variable rate mortgages work in the same way as a tracker in that they can either go up or down. However they are not tied to the Bank Of England so the lender can put up these rates even when everyone elses are going down. Can be more difficult to budget as your monthly repayment is liable to change as and when the lender decides to change the rates
Offset Mortgages
Offset mortgages offer flexibility in your borrowing. They work by having a separate savings or current account that runs alongside the mortgage. Although you wont receive any interest on your savings you wont then be charged interest on that balance of your mortgage. These can be really useful if you are looking to overpay your mortgage and also want to reduce the term but without saddling yourself to a high monthly minimum payment every month.
What are shared ownership mortgages?
Buying a home through shared ownership means that you will own part of a property and pay a subsidised rent on the part which is owned by the relevant housing association in your area. Often you are able to buy further percentages or even go on to own the whole property out right.
What are cashback mortgages?
Cash back mortgages pay you a cash lump sum upon completion of your purchase or remortgage.
What is a low arrangement fee mortgage?
Fee-free or low arrangement fee mortgages are popular with home buyers that want to keep their initial costs down or remortgage applicants that do not wish to incur costs for swapping to a better rate.
What are 95% mortgages?
A 95% mortgage allows you to borrow up to 95% of the value of the property you want to purchase, which is really useful if you are buying your first home.
So with a 95% mortgage the Loan to Value refers to the ratio of how much your mortgage is worth against the value of the property you wish to purchase, shown as a percentage.
For example: if you were buying a property costing £220,000 and putting in a deposit of £11,100, your Loan to Value would be 95% and your deposit would be 5%.
What is an interest only mortgage?
With an interest only mortgage you will only make payments towards the interest on the amount you’ve borrowed. This means that you will still owe the full amount borrowed at the end of your mortgage term.
What is a remortgage?
Remortgaging is where you replace an existing mortgage with a new one, without moving home. This could be with the same lender and you just change the type of mortgage deal you are on or with a new lender. Remortgages can be used for various reasons, but mainly because it will work out cheaper in the long run.
What is a debt consolidation mortgage?
Consolidate your debt means using the equity you’ve built up in your property to release yourself from debts that may be stopping you from doing the things you want to do, or may simply be having a huge impact on your overall personal finances.
Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
What is a capital raising mortgage?
Capital raising mortgages are usually ways of remortgaging your house to release funds for other purposes. The cash could be for home improvements, a holiday, a new car or simply to consolidate existing debts.
Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.