Use the Mortgage Calculator below to give you an idea of how a Loan may work over different Terms and with different Interest Rates.
This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender. You should make an appointment to receive mortgage advice which will be based on your needs and circumstances.
Choosing a mortgage is probably the biggest financial decision you will make. However with thousands of mortgages to choose from it can seem like an impossible maze to find your way through. Having a mortgage advisor like Personal Touch Mortgages makes everything easier. That’s where we can help.
We can find a mortgage product to suit your own individual requirements. Whether you are a FIRST TIME BUYER, wish to REMORTGAGE, MOVE HOME or you are looking at BUY-TO-LET, we will recommend a mortgage to suit your needs.
We will help you with your solicitor, estate agent, surveyor, mortgage lender…….in short, we will be with you EVERY STEP OF THE WAY
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee would be £99 payable upon application and further £300 payable only on completion of mortgage.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.
Variable rate
The monthly payment fluctuates in line with the lender’s mortgage rate. This can cause budgeting problems in times of increasing interest rates. Some lenders offer an annual review so that the amount you pay only changes once a year with the difference adjusting your outstanding mortgage. Lenders may also offer a version where your monthly payment fluctuates in line with the Bank of England Base Rate, often referred to as a ‘Base Rate Tracker’.
Fixed rate
The monthly payment is fixed over an agreed period of time and will remain the same regardless of whether interest rates rise or fall.
At the end of the fixed-rate term the interest rate usually reverts to the lender’s standard variable rate or you may be offered the choice of another product, on the terms available at that time.
Discounted
The lender offers a true initial discount for a given period. At the end of the discounted period, the rate usually reverts to the lender’s standard variable rate. No interest is deferred so the outstanding mortgage will not increase.
Cashback
Some lenders offer a cash payment on completion of the loan, either based on a percentage of the total loan or a flat amount. In some cases, if the loan is redeemed early,a proportion of the cashback may have to be repaid to the lender.
Capped rate
The interest rate is guaranteed not to go above a certain level throughout the capped rate period, which can be from one to ten years, but you will benefit from any reduction in interest rates.
Collared rate
The interest rate will not fall below a certain level for the collared-rate period.
Flexible mortgages
These schemes allow you to overpay, underpay or even take a payment holiday. Any unpaid interest will be added to the outstanding mortgage. Any overpayment will reduce your outstanding mortgage. Some have the facility to draw down additional funds to a pre-agreed limit. Lenders that offer any type of fixed rate, discount or cashback facilities to attract custom, usually require the mortgage to stay with them for a period of time to recoup their costs. They do this by imposing an early repayment charge for a given period which can extend beyond the benefit period. They will usually make an early repayment charge if you want to redeem your mortgage early.
Early repayment penalties will be charged if you die within the early repayment period so you should consider building this in to the level of life cover you have. You should also make sure that you can afford the standard variable rate that will be charged at the end of the discounted or fixed-rate period.
Valuation fee
This may include a non-refundable administration fee and must normally be enclosed with the application. The whole fee is non-refundable once the valuation has been carried out. The type of valuation you choose will depend on factors such as the age and condition of the property and whether there is any history of subsidence in the area.
– Basic mortgage valuation
This is for the lender’s own purposes confirming the property provides security for the loan. You may wish to consider one of the more detailed types of survey.
– Homebuyer’s report
This provides concise information in a standardised format on the state of repair and condition of the property. The report will include comments on the property’s defects and the valuer’s opinion as to its marketability.
–Full structural survey
This is a structural report based on a detailed examination of the property. Any areas of concern that you might have about the property will be investigated.
Arrangement fee
This may be payable either in advance, where the lender will ask you to enclose a cheque with the mortgage application, or on completion.
All or part of it may be non-refundable if the mortgage is declined or withdrawn. This will be specified in your mortgage Key Facts illustration.
Legal costs and fees
The fees charged by a solicitor include the charge for conveyancing (the transfer of ownership of land), the costs of legal registrations and miscellaneous costs (known as disbursements); for example, Local Search fees and Land Registry fees. We recommend you obtain an estimate of these costs early on in the process.
Stamp duty
Stamp duty is a ‘purchase tax’ and is generally payable where the purchase price of the property is more than £125,000.(Stamp duty is not payable for remortgages).
Higher lending charge
This may apply if the amount you wish to borrow is more than, typically, 75% of the value of the property. The lender may require additional security on the amount in excess of this threshold in the form of an insurance policy (a higher lending charge).
This policy is used to protect the lender only and is used to cover the lender in the situation where the property is repossessed and the loan plus any unpaid interest exceeds the sale value of the property. You will then owe the insurance company any payment claimed by the lender. The lender will arrange the insurance and the premium will be paid by you, in some cases it can be added to the loan.
Repayment charge
Some lenders make an early repayment charge based on the product selected. Others may charge at any time it you pay off your loan before the end of the normal mortgage term. In some cases this can be a significant amount. Always check the terms in the offer letter from your lender.
Buildings and contents insurance
All lenders require that you fully insure the property for the total cost of rebuilding it. It is also strongly recommended that you take out contents insurance. Your adviser can arrange this cover for you.
Mortgage payment protection
We recommend you consider protecting
your mortgage and associated payments in the event of being unable to work through accident, sickness or unemployment. Your adviser can arrange this cover for you.
Adviser’s fee
Your adviser will explain how he/she will be paid for arranging your mortgage. The exact details will be shown on your key facts illustration.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee would be £99 payable upon application and further £300 payable only on completion of mortgage.
Let To Buy is another mortgage product available to customers which offers an alternative to the popular “Buy To Let” option.
A let to buy mortgage allows you to borrow money to buy a new home to move into, while your existing home is let out to tenants.
The new mortgage lender will calculate the maximum that they are prepared to lend you and not take your existing mortgage into consideration as a commitment as long as the rent covers the existing mortgage payment.
A deposit maybe required for the new mortgage however this maybe released from the existing property by remortgaging or a secured loan.
Personal Touch Mortgages can provide tailored mortgage advice for your individual requirements. Speak to one of our mortgage advisors today.
Let to Buy Mortgages have various Pros and Cons
Pros
The rules are different from Buy To Let as you may be able to borrow a higher proportion of the property value. This means you may need a smaller deposit or if you have plenty of equity in your current property possibly no deposit at all.
Cons
We will help you with your solicitor, estate agent, surveyor, mortgage lender…….in short, we will be with you EVERY STEP OF THE WAY
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee would be £99 payable upon application and further £300 payable only on completion of mortgage.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.
Whether you are a first time landlord or already own a sizeable property portfolio, we can help to make your plans a success.
By listening to where you are now and taking the time to understand your future plans we can help you become a successful property investor.
Whilst making sure you have the right mortgage is key, there are other factors to take into account too.
We are happy to share our knowledge and experience to give you mortgage advice to help you make the right choices to bring your plans to life.
Personal Touch Mortgages can provide tailored mortgage advice for your individual requirements. Speak to one of our mortgage advisors today.
The key to having the best chance of success is to do your homework!
BUY-TO-LET GUIDE
Where To Buy
Location, location, location!
One of the most important things a tenant will look for when deciding which property to rent is where it is.
As an investor, one of your keys to success is buying in the right location.
Proximity to public transport links, local amenities, schools, hospitals, restaurants and bars will all have a bearing on the type of tenant you are likely to attract.
It’s always a good idea to consult a local letting agent in Grimsby or Cleethorpes to find out about local areas and what kinds of property are currently in demand from tenants.
Energy Performance Certificate
New regulation was introduced for landlords in October 2008.
If, after 1st October 2008 you let a property for the first time or get a new tenant in a property you already own you will need to have an Energy Performance Certificate.
This certificate will provide an energy rating for your property from A to G with A being the most energy efficient and G being the least.
This regulation is one of the measures being introduced to help tackle climate change by improving the energy efficiency of buildings to reduce carbon emissions.
Energy Performance Certificates will be produced by accredited energy assessors who in addition to rating the property will also provide a report detailing ways its energy efficiency could be improved.
Rental Income Potential
The location of your property, its type, size and condition will impact on the potential rent you can achieve with every location having its own expectations on the scale of rental income.
Local letting agents in Grimsby and Cleethorpes should be able to provide you with a clear idea of what level the rent should be set at in order to attract a suitable tenant and minimise potential voids.
It is likely that setting the rent on your property at more than the normal scope for its location will simply lead to greater void periods. It is better to achieve £25 or £50 per month less on your rent than to have the property empty for several months.
Letting Agents
A letting agent could be appointed to manage your rental property, typically dealing with anything from locating tenants, vetting them, setting up the tenancy agreement, collecting any bond monies to collecting monthly rents and dealing with any maintenance issues at the property.
Agents tend to charge a monthly fee for their services of between 7% and 15% of the rental income depending on what you want them to do. The level of commission charged will vary from area to area.
Having said that, some landlords choose not to employ a letting agent and manage the properties themselves.
Voids
As a landlord you will no doubt want to make sure your property is occupied as much of the time as possible.
It is prudent to budget for the possibility that you may experience voids as it may fall empty from time to time.
Many investors forget to factor this into their sums but it is prudent to budget for at least two months a year with no rent.
Whilst there are no guarantees, taking care when purchasing a property can help reduce voids.
Yield
The yield on your investment property is the annual return you receive as a percentage of the property value.
Ten years ago some properties offered yields around 10% but the figure today is generally much lower largely due to the increased property values seen over recent years.
A true yield will take into account full rental income but deduct items such as known void periods, overheads such as insurance and property maintenance along with any property management fees.
Whilst the yield is likely to influence your decision of whether to buy a particular property, it shouldn’t to be the only factor. There may be other, longer term issues to be taken into account such as potential capital appreciation or other local issues.
It is worth noting that the yield will have a bearing on the amount of money you are able to raise on a mortgage to buy the property.
Property Maintenance
It makes sense that an attractive and well maintained property is going to be much more appealing to potential tenants than one which is a little tired around the edges.
Keeping your property well presented will not only help to attract new tenants quickly, but also allow you to maximise potential rent.
It is also worth being aware that landlords have a duty of care to their tenants and there are certain regulatory requirements which need to be fulfilled. For example:
Any money you spend on your property in readiness to let plus any ongoing repairs done should be taken into account when you are calculating the potential yield of the property as an investment.
Potential Capital Gain
You will be classed as having made a gain if you sell your investment property for more than you paid for it and it’s this gain which is taxable, not the amount you receive from the sale.
Remember, if an investment property has more than one legal owner, the capital gains tax allowances of each owner could be used to mitigate any potential tax liability.
Income Tax
You must advise the Inland Revenue if you own an investment property as rental income is subject to income tax. Each legal property owner is required to complete a Self Assessment Tax Return.
A detailed list of allowable expenses can be found on the Inland Revenue website.
To complete an accurate Self Assessment Tax Return you should retain:
A copy of your Tax Return and supporting evidence should be kept for at least six years.
How much can I borrow?
The amount you can borrow for an investment property purchase will vary depending on a number of factors.
As a general rule of thumb, whilst some lenders will consider advancing up to 75% of the purchase price of a property, recent changes in the market place have meant there are more choices if you can provide a larger deposit.
When deciding how much they will advance, lenders will not only look at the purchase price of the property but will also look at the amount of rental income the property will generate.
Looking at the rental income and allowing an amount for the overheads such as insurance, maintenance and potential void periods, lenders will want to make sure there is sufficient income to cover interest on the mortgage.
Lenders usually calculate this by insisting monthly rental income be around 125% of the monthly interest cost on the mortgage, although this does vary between suppliers.
What Is A HMO?
A HMO is a House in Multiple Occupation.
Changes in The Housing Act 2004 state that if you let a property which meets one or more of the following criteria, it is classed as an HMO.
A HMO is a private rented property which:
If you are considering a HMO property, Government legislation states you must obtain a Licence from your local authority for EACH property.
The licence was introduced to ensure both the property and the person managing it are suitable.
Landlord’s Rent Guarantee
Protecting your investment. Do you ever worry that your tenant may struggle to pay their rent?
Despite being very careful when selecting your tenant, unexpected problems can still happen.
Landlord’s Rent Guarantee will help to ease your financial burden whilst the problems are resolved.
This insurance will cover the cost of legal fees should you need to evict your tenant whilst also making a payment to you to cover lost rent for a predetermined number of months.
You may be in the unfortunate position of having a tenant who is unable to pay their rent for a variety of reasons. Not only might you suffer a shortfall in rental income you may also incur legal costs if a tenancy agreement is breached. Disputes can happen between landlords and tenants for a number of reasons and if legal action is necessary to resolve the issues, it can be costly
Tenancy Deposit Scheme
Since 6th April 2007 all deposits taken by landlords and letting agents for Assured Shorthold Tenancies in England and Wales, for rent up to £25,000 per annum, must be safeguarded by a Government approved scheme.
As a landlord you or your letting agent must protect every deposit and although you can choose which tenancy deposit protection scheme to use, you must inform your tenant which one you have chosen within 14 days of receiving their deposit.
We will help you with your solicitor, estate agent, surveyor, mortgage lender…….in short, we will be with you EVERY STEP OF THE WAY
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee would be £99 payable upon application and further £300 payable only on completion of mortgage.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.
When did you last review your mortgage?
Reviewing your mortgage regularly with a mortgage broker could be the key to healthy finances.
It may be that a re-mortgage could save you money by reducing your monthly outgoings and whilst lots of people look to re-mortgaging to cut costs, there are many other reasons to think about it:
As mortgages are changing all the time, we can help to make sure you have the best possible one for you by reviewing the thousands available. Personal Touch Mortgages can provide tailored mortgage advice for your individual requirements. Speak to one of our mortgage advisors today. Let us help you to get your finances in good shape for the future.
We will help you with your solicitor, surveyor, mortgage lender…….in short, we will be with you EVERY STEP OF THE WAY
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee would be £99 payable upon application and further £300 payable only on completion of mortgage.
If you’re already on the property ladder and thinking about moving, finding the right house and financing the purchase may feel challenging.
Having the right mortgage this time around is just as important, as it could have a bearing on how much you actually have to spend on your home as well as the size of your monthly repayments!
That’s where we can help at Personal Touch Mortgages by providing mortgage advice tailored to your requirements.
Personal Touch Mortgages can provide tailored mortgage advice for your individual requirements. Speak to one of our mortgage advisors today.
We will listen to you to make sure we fully understand your circumstances before exploring all your mortgage options to find the right one for you.
Let us do the hard work so you can go shopping with confidence!
We will help you with your solicitor, estate agent, surveyor, mortgage lender…….in short, we will be with you EVERY STEP OF THE WAY
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee would be £99 payable upon application and further £300 payable only on completion of mortgage.
Buying your first home can be very exciting and may be one of the most important purchases you ever make. It’s therefore natural to have lots of questions for your mortgage broker, especially about your mortgage.
You may think that owning your own home will come hand in hand with red tape, solicitors, banks and large sums of money, not to mention a bewildering choice of mortgages and mortgage lenders.
Personal Touch Mortgages can provide tailored mortgage advice for your individual requirements. Speak to one of our mortgage advisors today.
Choosing a mortgage is probably the biggest financial decision you will make.
With thousands of mortgages to choose from it can seem like an impossible maze to find your way through.
That’s where we can help. We can find a mortgage product to suit your own individual requirements.
We will help you with your solicitor, estate agent, surveyor, mortgage lender…….in short, we will be with you EVERY STEP OF THE WAY
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee would be £99 payable upon application and further £300 payable only on completion of mortgage.
© 2024 Personal Touch Mortgages (Lincs) Ltd
Personal Touch Mortgages (Lincs) Ltd is an appointed representative of PRIMIS Mortgage Network,a trading name of Personal Touch Financial Services Ltd. Personal Touch Financial Services Ltd is authorised and regulated by the Financial Conduct Authority (FCA).
The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
Registered Office: 1 Knight Street, Grimsby, DN32 8EW. Registered in England and Wales No. 07038336
