If your mortgage can’t be moved and you’re still in an early repayment charge period, you need to take these charges into account when working out your finances when moving home. Contact us for more information.

If your mortgage can’t be moved and you’re still in an early repayment charge period, you need to take these charges into account when working out your finances when moving home. Contact us for more information.

This is often referred to as an early redemption charge. Your mortgage offer will set out what this charge is, or you can contact your lender to find out the early redemption charge. Some mortgages can be moved to a new property which avoids having to pay any charge. 

Potentially, this is called a let to buy. You’ll need to have sufficient equity in your existing house, which is generally at least 25% of the value plus a higher enough rental income to satisfy the lender that it’s a viable option. You’ll then need to have enough funds left over for the deposit for your new house and be assessed as being able to afford the new mortgage. If you do this, there is extra tax to pay on your new house so this needs to be factored into your budget too. Contact us to find out more information.

In essence a mortgage is just a large loan secured against your property. There are 3 parts. The capital is the money you borrow from the lender. The interest is what the lender charges you for borrowing the money. The protection is split into 2 parts. The banks protection is your property, if you failed to make the monthly mortgage payments they could repossess the property ie take it back. Your protection is to ensure this does not happen, for example life insurance, critical illness cover, income protection. We will look at these is more detail as part of your mortgage application.

This is driven by many factors but the main 4 are :

• Income
• Commitments – things you have to pay eg loans, credit cards.
• Your credit history – its always a good idea to check out your credit report via Equifax or Experian. A top tip is to make sure you are on the electoral register at your current address.
• Deposit – the credit scoring does alter the lower the deposit contribution as the risk is higher.

Base rate is reviewed monthly by the bank of England & has a direct impact on variable rates & also influences fixed rates.

There are really only 2 types of interest rates, fixed & variable.

• A fixed rate (commonly for 2 or 5 years) means you know exactly what you are paying for the 2 or 5 years whatever happens to interest rates. You will benefit if rates rise but wont if they fall.
• A variable rate which can be a tracker or a discounted rate (again normally for 2 or 5 years) will move up or down if base rate moves up or down. You will benefit if rates fall but not if they rise.

Don’t worry as we will advice the right product & term of product based on your priorities & circumstances.

The standard variable rate is the lender default rate which nobody should really be on. Once your 2 or 5 year term of product ends you should pick another deal, but if you don’t you would revert to the lender standard variable rate. At Grosvenor May as a lifetime customer we will contact you 6 months prior to your deal ending so we can again look at the whole of market to get you the best deal with no additional broker fee’s.