Moving Home Guide

'Sometimes it feels like I’m living in a bit of a cupboard. I need more space, a garden, an extra bedroom or two, how about a conservatory too. Finding a new place is the easy bit but finding a new mortgage…well quite frankly its not something I’m looking forward to. I just need someone to take care of the paperwork while I can get on with the fun bit of making a new place my own!'

Our plans and ideas are big too. We want to find you that mortgage that gets you in your new home as quickly as possible. We’ve got a wide range of mortgages to choose from as well as years of experience in home buying so we can support you all the way. And because we know speed is of the essence, we don’t mess about. Phew, feeling better already? Come to think about it do you need an ensuite too?

How much can you borrow

Most lenders let you borrow around 3.25 times your annual income if you’re single. If you’re a couple 3.25 times the main income plus 1 times the other or 2.5 times your joint incomes. But we give you more options than this. Up to 4.75 times salary in fact. These sums might not work for everything, so we have options which let you borrow more if you need to as well as advice to help you judge how far to stretch yourself without over-stretching yourself. We’ve also got special deals for self-employed people, and can explain how the maths bit works for you.

What costs are involved?

In addition to your monthly mortgage payments, which are determined by the size of your loan, the interest rate and usually term, here are the main costs of buying a home:

• Mortgage arrangement and valuation fee. To check the value of the property - from £334, although we've even got options with no upfront fees to pay.
• Product fee. This fee covers the cost to us of offering your interest rate or deal.
• Mortgage arrangement and Homebuyer survey (optional but recommended). To check the general condition of the property - from £499.
• Full structural survey. A more in-depth survey - £800+. Usually only required if a problem is highlighted in the mortgage valuation.
• Stamp duty. Government tax - ranges from 0%-4% of the property’s purchase price if it’s more than £125,000.
• Legal fees. Payable to your conveyancer or solicitor. Includes land registration fees and local search fees, though we do have some options where there are no basic legal fees to pay. 

Let’s talk choices

There’s lots of different types of mortgage around, probably more than the last time you took one out. Mortgages are our specialist subject. We’ll give you all the information you need to help you choose the right one, in a way that doesn’t make your head explode.

The 5 basic mortgage types:

1. Variable. The standard mortgage type. So called because the rate can change.Your payments can increase or decrease.
2. Fixed. You guessed it, the rate stays the same. For an agreed period (usually between 1-5 years) your payments stay the same. We also have deals where you can fix your mortgage payments for up to 10 years.
3. Capped. A less popular choice that we don't currently offer. This is a variable rate mortgage that won’t rise above a certain level, for an agreed period of time. So you know what the maximum payments will be.
4. Discounted. This is basically a variable rate mortgage that offers a lower rate for a promotional period. Making your initial payments much easier to manage.
5. Tracker. As the name suggests, this type of mortgage tracks the movements of a benchmark rate, like the Bank of England’s base rate. Your rate will go up and down with it.

Further options

Choices, choices, choices. In addition to the 5 basic types of mortgage, there are a few other options to consider. But don’t worry we’ll help you weigh up the pros and cons.

Fees free options. They’re available too to cover your valuation and conveyancer or solicitor’s fees. Just ask our staff for details.

'Which one is the best for me?'

Until we’ve had a good chat, it’s impossible to say. Some people like the certainty of a fixed rate. Others like the possibility of their payments going down and so choose a variable rate.

When we've help you choose which type of mortgage you want, you then decide how you want to pay it. There are two ways:

1. Repayment. With a repayment mortgage, each month you pay a bit off the loan,as well as the monthly interest. At the end of the term you owe nothing.
2. Interest only. With interest only your payments are lower, but only cover the interest on the loan. So at the same time, you pay into an investment fund, which is used to pay off the capital when the term ends. 

Protection for you and your family

We're not here to try to sell you protection you don’t need, but as your mortgage plans change, your plans to protect your loved ones might also need updating. With every new mortgage it pays to check that your existing arrangements continue meet your new plans – whether that’s a bigger mortgage, growing family or just more peace of mind that its all sorted should the unexpected happen.

The good news is that life insurance prices have gone down in recent years so you could save some money by getting another policy. We can review your insurance as part of your mortgage appointment to make sure you have the right cover in place and that you're not paying over the odds.

Here’s an outline of the different types of mortgage cover available.

Critical illness cover. Basically, if you do die before your mortgage is paid off, life cover (also called life insurance) should cover the remaining debt for you. This is definitely worth having, especially if you have dependants or a partner. Some lenders may insist on you having it. This type of cover is designed to pay out a guaranteed sum of money if you fall critically ill and are unable to work.

Income protection. If you can no longer work due to an accident or sickness, income protection can provide you with an income for a period of time.

Accident, sickness and unemployment. This covers your mortgage payments for a limited period if you’re made redundant, fall ill or have an accident.

Home insurance. Buildings Insurance covers the cost of rebuilding your home in the event of structural problems or a disaster. Contents Insurance covers your possessions against loss, damage or theft.

Want to Borrow extra?

Don’t fancy doing the decorating yourself? If you've done it before and don’t want to do it again, you can borrow a bit more and use it to make your new home into a palace from day one. We’ll look at the options for you, depending on how much you want to borrow compared to value the new of your new home and your existing mortgage balance. We'll do all we can to make moving home as simple as possible and – dare we say – fun too. Happy house warming.