Mortgages & Remortgages

 

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Mortgages are designed to allow consumers to make large purchases such as buying a property that they never would have been able to do so out of their own funds. Why? Mainly due to the large sums of money required to buy a property these days, not many people have £100,000 plus spare in the bank. We live in a finance world where we spend what we have and borrow what we need.
As such a repayment term on a mortgage is generally a lot longer period than say for an unsecured loan.  Therefore when it comes to taking out a mortgage or remortgaging your a property you already own, it is quite a big deal and you need to be advised very carefully as the commitment you are making is probably the biggest financial commitment you will ever make.

Your Smart Finance are therefore proud to boast a team of advisors with over 20 years experience in the mortgage industry  and as such are very confident we can deal with whatever mortgage or remortgage requirements are thrown our way; whether it be a client with bad credit rating, a client with a very small deposit, a client wanting to release a large sum of equity or simply just a straight forward mortgage,  we are confident we have seen it all before and can no doubt offer you the best free advice out there to ensure you feel comfortable about what you may potentially commit to for as long a periods as 30-40 years in some cases.

New to mortgages?

If you’re a first time buyer and not 100% sure how a mortgage works, then please do not hesitate to ask one of our mortgage advisors when speaking to them. There’s no need to be shy, we have all been in your shoes at some point. However, before you speak to them here is a quick summary of the mortgage world and how it works;
As mentioned above, buying a property requires a lot of money and in a vast majority of cases money that people do not have.  Therefore lenders will borrow you the money in order for you to purchase a property. This is called a mortgage. A mortgage consists of 2 elements: The capital (this is the money borrowed) and the interest (what the lender wants back for the service of lending you the money). The interest you will be charged depends on several factors:

• How much money you are willing to put into your mortgage, known as a deposit. The more you put in to buying your property the more secure the lenders feel about lending you the money to purchase your property and as such charge a lower rate of interest than if you had little or no deposit as this would be seen as a higher risk for the lender.

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• Your credit rating. Even if you have bad credit all is not lost, mortgages can still be arranged for people with bad credit. However the risk factor from the lenders point of view will be assed again here and as such someone with a bad credit rating will be charged a higher interest rate than someone who has never defaulted a payment in their life.

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  Income is another big factor when looking in to a mortgage. Been able to prove you income via payslips, accounts or employers references tends to inherit a lower interest rate than self certification. However just because you earn money doesn’t mean you can buy any property you want. Mortgages are structured to ensure you can only borrow as much as you can afford. Normally 3.5 to 4 times your wage is a good guide if you’re wondering what your price range is for a property.

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  Other small factors which can help or have an adverse affect on your mortgage application, is proving who you are -identification, proving where you live - recent utility bills and sometimes the lenders may want to see proof of insurances in place etc before lending the money for you to purchase your property.