If you are a first time with no experience of
getting a mortgage, professional advice from
a mortgage broker who can use the market as
a whole may potentially assist you make an informed
decision on the most suitable mortgage product
to meet your current needs and circumstances.
This will be probably, the biggest financial
commitment you will make so helpful guidance
is essential. It is important not to over stretch
yourself and plan that your future borrowing
can be met and suits your needs.
Subject
to satisfying the individual lenders criteria
a lender may offer to lend money to purchase
a property in the form of a mortgage. A residental
mortgage which is a loan secured on your new
home means that if you are unable to service
the loan they own a large percentage of your
home and can repossess that property if you
are unable to service that loan correctly. You
will only receive a mortgage if you match their
lending criteria.
This
is unlike a unsecured loan for example a personnel
loan from a bank. There are many issues and
components to a mortgage that should be understood.
For example what is loan to value, early repayment
charge, stamp duty, debt consolidation, self
cert, disbursements, deposit and mortgage arrears.
Take note that some mentioned are actual mortgage
products and options which may not be included
within a mortgage as a component.
You
can potentially save a lot of money by choosing
the right mortgage for you, insuring it is the
most suitable mortgage to meet your current
needs and circumstances. . But your mortgage
is a long term commitment and the deal that
you take out should match your requirements.
For example if you plan to only live at the
property for a while due to job transfer you
may consider having a portable mortgage or a
home loan without early repayment charges. If
you redeemed the mortgage early high penalty
could be charged. As guidance how an early repayment
charge can apply for example by taking out an
incentivised product such as fixed rate, discounted
and capped rate these could incur early repayment
charges after the incentive has expired.
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