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| When moving home you will have enough to occupy your time without having to trawl the high street to find a competitive mortgage deal. Speak to one of our friendly highly qualified Financial Planning Consultants today for a free no obligation discussion in confidence. Alternative Estates offer mortgages from the whole market which means we can find you the best possible deal on your mortgage. Call today to arrange a free consultation in branch or at home!
Your home may be repossed if you do not keep up repayments on your mortgage We don't usually charge brokers fees for advising upon and arranging mortgages, however it may be necessary to charge a fee of betweeen £250-500 for advising upon and arrangeing certain types of mortgages where a substantial amount of work is required on our part. Where it becomes necesarry to charge a fee this will be discussed and agreed with you at outset. |
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Variable Rate The monthly payments 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's 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, on their normal standard variable rate for a given period. At the end of the discounted period, the rate 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 1 to 10 years, but you will benefit from any reduction in interest rates. |
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 a redemption charge for a given period which can extend beyond the benefit period. They will usually make a redemption charge if you want to redeem your mortgage early. Redemption penalties will be charged if you die within the redemption 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. |
What Costs And Fees Are Involved? |
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| 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 lenders own purposes confirming the property provides security for the loan. You are strongly advised not to rely on a mortgage valuation and to obtain your own survey. |
| Home buyer'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 significant defects which are material to value and the valuer's opinion as to its marketability. This type of report is most suited to relatively modern properties of conventional construction. |
Full structural survey This is a lengthy 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 quotation. |
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 payable where the purchase price of the property is more than £120,000. The current charge is 1% of the purchase price of the property. This increases to 3% if the price is more than £250,000 and to 4% if the price exceeds £500,000. (Stamp Duty is not payable for remortgages). |
High percentage lending fee Sometimes known as Mortgage Guarantee Premium. This may apply if the amount you wish to borrow is more than, typically, 75% of the value of the property. The lender will require additional security on the amount in excess of this threshold in the form of an insurance policy (a higher percentage lending fee). |
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