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Whether you're searching for a new mortgage, looking to reduce your monthly outgoings by re-mortgaging, thinking about a 'buy-to-rent property, or just
curious, we have something to interest you.
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What is a mortgage?
A mortgage is "a legal charge over property" and, in layman's terms, arranging a mortgage or remortgage is the process by which a borrower obtains funds from
a lender to enable the purchase or refinance of a property and is required to grant the lender a legal charge over the property as part of their
security. Assuming that a lender is willing to offer a monetary advance against the security of a property to be mortgaged, the borrower(s) will need to
consider whether:
- to opt for a formal capital repayment mortgage (the safest option, offering the heaviest formal repayment liability),
- to opt for an interest only mortgage and "self manage" the repayment of capital (only for the financially disciplined and adventurous, offering the
greatest flexibility and the lightest formal repayment liability),
- to opt for a discounted variable or a "tracker" or a fixed or a capped initial interest rate and maybe also for a flexible or offset mortgage account.
- they may require the freedom to over-pay voluntarily or repay some capital owed during any early redemption penalty (ERP) period.
You may also wish to consider:
- the various charges associated with mortgaging or remortgaging and the potential availability of certain free associated lender's services,
- the so-called "Armageddon scenarios"...
- What happens if one or more borrowers dies or becomes seriously ill or is made redundant?
- What happens if the property or its contents is damaged or destroyed or lost or stolen? (Note: the lender will always insist that the mortgaged
property is insured for its full rebuild cost).
For more information and impartial advice, please ring 01926 484033 or 07850 366681. A phone call costs very
little and could save you thousands.
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