Understanding Mortgages
Our aim, as independent mortgage advisers, is to explain the pro's and con's of the different products and help you to make the right choice. (Unlike some brokers we do not dictate to you). We appreciate that this is your mortgage and understand that you are likely to be undertaking the largest financial commitment you ever need to do. It is essential that you understand the choices open to you so that you may make an informed decision. We will be there to guide you and offer our opinion.
Navigating your way through the mortgage market may seem an overwhelming process, however finding the right mortgage means finding one tailored to meet your needs, taking into account your past, present and future financial situation, your lifestyle and age.
Often the first question we are asked is "how much can I borrow?". This is not easily answered, the market has changed considerably. You will need to contact us to receive a specific idea, based on your own circumstances.
There are 5 major decisions to be made:
1. Scheme
Would you like a Fixed rate product or a discounted deal? There are also variable rates, capped rates, flexible features and Offset versions too.
2. Repayment Method
Would you like to repay the capital and the lender's interest (commonly know as the Repayment Method)? Or would you be happy to have an Interest Only loan with a savings vehicle running alongside? You may also obtain a loan that is Interest Only but with no savings vehicle…the potential negative implications need to be explained in detail before you make a decision.
3. Term
Would you like have your debt repaid before you retire? Do you have mitigating circumstances where you need a term into the standard retirement age? The length of the contract can affect the amount to be paid back monthly and have a dramatic influence on how much interest you pay back to the lender in the long-term.
4. Lender
This is probably the hardest decision to make. We tend to isolate the most well-known lenders and those with the cheapest deals that are suitable. From that you can then make the decisions above to find your new rate.
5. Protection
Regrettably, I have been affected by bereavement. My own circle of friends and family and witnessing the devastating effects it can have on clients that I have helped. The misconception of protection is that the broker will really try to sell the products to you and that they are all really expensive. I come across these objections all the time. Nothing could be further from the truth though. We have a duty to show how you could protect yourself against the awful things that can hurt us. After all if we do not show the possibilities, you may not know they exist. Everyone's circumstances and priorities are different, so we simply show all the potential problems and solutions. No sales. Just advice. You can then take what you think is affordable and suitable and really tailor-make it to what you are comfortable with.
Our aim is to ensure that you have enough knowledge to make these decisions and the confidence in us to recommend a mortgage to suit your needs.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. WRITTEN QUOTATION OF CREDIT TERMS AVAILABLE ON REQUEST.
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