The complete Mortgage website - Everything you need to know about a
mortgage
- All mortgage related services available here
How much can I afford
and types of Mortgage available
Before considering a mortgage or remortgage or
buying a home, it is sensible to calculate your personal budget to
make sure you can afford the additional commitment. For shared Mortgages this may mean
you and your partner sitting down and agreeing the figures.
The mortgages
available will largely depend on your income.
Most lenders now base the amount you can borrow
on affordability and each lender is different. As a rough rule of
thumb to calculate the amount you can borrow, you can use income
multiples of 4 times the main salary plus 1 times the second income.
This could be more or less depending on your own individual
circumstances. We can help you get the best deal.
To set the maximum
price you can afford to pay for your home, add on the cash you have
available as savings to the amount of the multiplier in the previous
paragraph. For those people who are not first time buyers, if you
have a property to sell you can also add the equity value you have
built up in your existing property. The equity is difference between
the sale price (after the selling costs have been deducted) and the
mortgage that is outstanding.
You will need to
provide a deposit for your home. If you have no deposit you will
need to look at a 100% mortgage and this may prove
to be more expensive as it is less attractive to lenders.
However, you cannot use all of your spare money as a deposit. You
will need to take into account all the additional upfront costs
involved in purchasing a property. The legal aspects of purchase
cannot be ignored - stamp duty kicks in at 1% of the purchase price
on properties costing more than £125,000 to £250,000.
Properties costing more than £250,001 and up to £500,000 are charged
3% stamp duty, while properties costing more than £500,000 are
charged 4%, and don't forget you'll have to pay solicitors fees.
You may have to pay an application fee for a special mortgage deal
plus, perhaps, an arrangement or completion fee when you finally
take the loan. And watch out for Mortgage Indemnity
Guarantee (MIG) charges - a form of insurance that protects the
lender, but is paid for by the borrower. If there is a charge for
this, it may be added to the loan, or could be payable over the
early years of the loan.
Don't forget to budget for valuation and survey fees.
Furthermore there is a £50
cashback on any successful mortgage or
remortgage
application which you complete using Remortgage Advisors UK.
WRITTEN QUOTATION AVAILABLE ON REQUEST. LOANS SUBJECT TO STATUS.
MORTGAGES ARE ONLY AVAILABLE TO ADULTS OVER 18.
Think
carefully before securing other debts against your home. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP
REPAYMENTS ON YOUR MORTGAGE.
Not all mortgage types are
currently regulated by the Financial Services Authority.
remortgageadvisorsuk.co.uk,
mortgageadvisorsuk.co.uk and remortgageadvisersuk.co.uk are an internet trading style of Hedley Hammond and
Co. Hedley Hammond and Co Limited is an appointed representative of Thinc Network Services Limited, which is authorised and regulated by the
Financial Services Authority.
