Home Movers
It may have been a while since you bought your home and chances are you’re like most people out there and can’t remember where to begin sorting out your mortgage or you just want to know more about the new options available to you.
There are thousands of mortgage schemes to choose from which is good for you as this keeps prices competitive. However as a buyer it also means that the mortgage market place is very confusing. Don’t despair! We aim to make your home moving experience an easy one.
At TMC we will be able to advise you on many aspects of moving home as well as the mortgage options that are available to you.
Your consultant and case manager will then be with you every step of the way to help make things go as smoothly as possible as well as keeping you updated on the progress of your move.
Repayment Mortgage
Monthly payments will gradually pay off the amount you owe (the capital) as well as paying the interest charged to you for the loan. Provided you make all these agreed payments, your loan will be paid fully by the end of the mortgage term.
Interest-Only Mortgage
Monthly payments cover the interest on the loan only, but do not pay off any of the capital. Separate arrangements need to be made to pay into a savings or investment scheme. This needs to build up a lump sum to pay off the mortgage at the end of the term. You have to to make sure you have enough money to repay the mortgage at the end of the term, otherwise you could lose your home.
Interest Rate Arrangement
Whether you choose a repayment or an interest-only mortgage, you need to consider the different types of interest rate options available to you.
Remember, what looks like a cheaper mortgage today may not prove to be so in the longer term. Ask what happens after any special deal ends.
Standard Variable Rate Mortgage
Monthly payments go up or down when the lender's mortgage rate changes.
Tracker Mortgage (variable interest rate mortgage)
A tracker mortgage interest rate is a set amount above or below the Bank of England or some other base rate. It 'tracks' changes in that particular rate.
Discounted Interest Rate Mortgage (variable interest rate mortgage)
With a discounted interest rate mortgage your payments are variable, but are fixed at less than the lender's standard variable rate for a set time. At the end of this period, you are usually charged the lender's standard variable rate.
A Mortgage with Cashback
A cashback mortgage is where you receive a sum (usually between 3 and 5 percent of the amount borrowed, but sometimes a flat figure) shortly after you take up the loan. Normally some or all of the cashback is repayable to the lender if you repay the mortgage in the early years.
Variable Rate Mortgage - Good or Bad?
Good: You could benefit from any reduction in the current interest rates. This may mean your monthly payments go down. You usually have flexibility to overpay without any penalty. This assumes that there are no restrictions on making overpayments and early repayment charges do not apply.
Bad: When interest rates rise, your monthly payments could go up. With discounted mortgages, you need to think about what your monthly payments will be at the end of the discounted period, including any potential increase in interest rates.
What does loan-to-value (LTV) mean?
Loan To Value refers to the loan as against the value of a property expressed as a percentage. For example, a mortgage amount of £90,000 against a property value of £120,000, the LTV would be 75%.
Broker Fee Agreement
There may be a fee for Mortgage Advice; the amount will depend upon your circumstances but we estimate it to be 0.5% of the mortgage sum.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
