How much can I borrow?
This amount you can borrow will depend on you as an individual and is usually based. In it’s simplest form it is based on annual income, although there are many other factors involved. Other things that will also be considered include your credit rating, debts, outgoings and your deposit amount.
How much deposit do I need?
The minimum deposit can be as low as 5%, or 0% in some rare cases. Generally we recommend at least a 10% deposit. We would advise to save as much as possible as a low deposit can mean higher monthly repayments. Usually, the higher the deposit, the lower the interest rate. This means your repayments should be lower.
How much will my mortgage payments be?
The cost of your monthly mortgage repayments generally relates to the following:
- Total amount borrowed
- Whether you are paying back the mortgage or just the interest
- How many years are on the mortgage term
- The interest rate
What is the difference between a repayment mortgage and an interest only mortgage?
A repayment mortgage means you will pay off the full mortgage amount borrowed by the end of the term, as long as all your payments have been made. An interest only mortgage involves only paying the interest due on your monthly payments. At the end of the term, an interest only mortgage means you will still owe the same amount that you initially borrowed so you will not own the property.
Do I need insurance to cover my mortgage?
You will definitely need buildings and contents insurance for your home. This is a requirement and covers you in the event of a fire, for example, or your property falling down! Life cover is also recommended by us as well as payment protection. These policies are designed to pay your monthly mortgage payments if you are off work due to an accident or sickness, or worse.
Can I move my mortgage from one lender to another?
Yes, we can help you move your mortgage from one company to another. Many of our clients will do this when they come to the end of their fixed term. These fixed terms are usually two, five or ten years. Often we can find a new product with a different interest rate which may lower your monthly payments. Be careful though, some mortgage products have penalties if you leave before a specified date. We can look into this for you.
Can I pay off a mortgage in full early?
Yes, you can pay off a mortgage early. Bear in mind you may have to pay an early repayment fee. Check with your current lender, or with us if we originally found the mortgage product for you.
Can I make mortgage overpayments?
Yes. You may be able to pay off your mortgage sooner. Again, check for repayment penalties. This could lower the mortgage term if you keep making additional payments.
Can I have more than one mortgage?
Usually you can only have one residential mortgage. You may be able to take out one or more buy to let mortgages in addition to this. These buy to let mortgages are only accepted if you intend to rent those properties out to tenants.
What is a buy to let mortgage?
A buy to let mortgage is a product designed specifically for those wanting to buy a property then allow tenants to live in the property. These products generally have a slightly higher interest rate and the rental income must cover the monthly repayments. This is only some of the criteria and we urge you to speak to us to find out more.
How much deposit do I need for a buy to let mortgage?
Normally you will need a minimum of 25% deposit for a buy to let mortgage. We have known lenders to offer buy to let products with 20%.
How do I find the right mortgage for me?
The obvious answer is to get in touch with us at Locate Mortgages! We’ll look at your current financial situation and find a product which suits you. You can contact us here. I am an expert and fully qualified mortgage broker in Nottingham.