Mortgages
Mortgages are available from banks and building societies. Or go to an independent financial adviser
who will check with multiple lenders to obtain the best offer
Estate agents may offer to arrange a mortgage for you. But always shop around
Mortgages come in many types with fixed or variable rates and can be taken up to 30 years
( Please read the small print very carefully and obtain advice and a second opinion if possible)
The amount of mortgage offered will depend on a number of factors
Your Income ( single or Joint )
The valuation of the property
Your Credit Report and Rating
The percentage of house price you wish to borrow
A mortgage is a large, long-term debt. You could lose your home if you can't keep up the
repayments, Think carefully before taking on a mortgage.
If possible try to arrange your mortgage before making any offers for a property, this means you
will know exactly how much you have to spend on a house and how much your repayments would be
Mortgage Jargon Busting
Repayment mortgages Over the period of the mortgage each payment pays off a small amount of the underlying debt, as well as interest. At the end of the term the mortgage is cleared.
Below are other ways offered by companies to finance buying a house
Endowment Mortgages
Individual Savings Account (Isa) Mortgages
Pension mortgages
Variable interest rates Each time the Base interest rate changes will effect your mortgage payment
usually the changes are calculated on a yearly basis and payments are altered accordingly
Fixed interest rates The interest rate is fixed for a period agreed
often two to five years, this can be major help for budgeting your yearly expendature when
you buy your first home but after the fixed period the current prevailing rates will come into effect
Below is a link to the BBC site to provide further reading on those listed above
BBC Mortgage Information page
Surveys and valuations
Valuation Before giving you a mortgage, the lender will get the property valued. ( very basic survey )
HOME BUYERS SURVEY Due to the large lifetime investment you should think carefully about a
HOME BUYERS SURVEY ( Detailed inspection of the property and can be usefull in negotiating with the seller
if any problems found)
Structural SurveyYour Lender or yourself may require, a full structural survey. This tells you
whether the property is sound or whether major repairs are needed. A full structural survey should be
carried out by a qualified and independent surveyor. Be sure to use a surveyor who is a member of a
professional association and check with Royal Institution of Chartered Surveyors.
