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Mortgage help, advice and guide

Welcome to the financialAdvice.co.uk mortgage advice page. Here we will be able to provide you with all the help and advice you need related to your mortgage, whatever your issue may be. We also have a range of useful guides to give you more information about mortgages, which you can find below.





What is a mortgage?


A mortgage is simply a long term loan that is secured against the value of a property normally over a period of 25 years.




Can I get a mortgage?


This will depend mainly on how much you have managed to save as a deposit, as well as your financial history which will be measured by your credit rating. Mortgage lenders prefer you to offer as much as possible as a deposit, as this protects them against loss of value on the property.


In the past some lenders have offered 100% mortgages, meaning no deposit was necessary from the borrower, however as market conditions toughened these were taken off the market. Government initiatives such as Help to Buy and Funding for Lending have made a big difference to the mortgage market since their introduction, making it easier to take out a mortgage for many, so it might be worth considering these if you are thinking about applying.




How to get a mortgage


Most people will spend a considerable amount of time planning and saving for a deposit for a first home, but there are many factors in your past that could affect how compatible you are for a mortgage from the point of view of a lender.


Once you have a deposit ready for a mortgage there are a few of things you can do to help you first make sure you are accepted, and then get you the best deal possible:
- Register yourself for the electoral roll
- Make sure you compare different mortgage deals
- Don’t apply too many times!


Mortgages are not straight forward products, however, and much of the time you will require a professional advisor to help you with your mortgage questions. It is worth remembering that your mortgage is likely to be the biggest financial commitment you ever make, so making the right choice is all important.




Different types of mortgage


There are two main types of mortgage payment options available.


Repayment mortgages
Here monthly payments are calculated so that the whole loan is repaid by the end of the agreed mortgage term. Each payment is made up of a combination of interest and capital repayment and guarantees that your loan is fully repaid at the end of the term, provided you make each monthly repayment when it is due.


Interest-only mortgage
Your agreed monthly payments will only cover the interest on the loan and the capital amount of the loan will not reduce. Your monthly mortgage payments are likely to be lower than with a repayment mortgage, but you are likely to need to set up some form of investment product such as an endowment, ISA or pension to enable you to repay the amount borrowed at the end of the agreed term.




Mortgage interest rates


There are many types of mortgages offered by lenders with a host of options in terms of interest rates, and this can significantly affect the amount you will pay each month. This is a very complicated market and the range of mortgage types available is changing constantly.


Here are some examples:
- Tracker mortgages
- Standard variable rate mortgages
- Capped rate mortgages
- Discounted rate mortgages
- Fixed rate mortgages


For more information on mortgage interest rates, we strongly recommend you speak to a financial advisor.




Remortgaging


There are a number of reasons why people look to re-mortgage their homes by moving to another lender. It may be to help reduce the monthly mortgage payments, reduce the overall term of the loan, pay for home improvements or pay off debts.


While in some cases remortgaging is a good solution, it may not always be your best option, and sometimes it is better to speak to a financial advisor to determine other options.




Your mortgage and divorce


If you have the misfortune to be going through a divorce or separation from a partner, sorting out issues relating to your mortgage can be a nightmare. Once you have overcome the legal obstacles, you may find yourself in a situation where there are major changes to be made to your mortgage, and speaking to a financial advisor can help you to make the right decisions for you




Mortgage help and advice for you


Your mortgage is a massive consideration, and financially probably the biggest commitment you will ever make. Getting it right is imperative but is not always something you can do on your own.


This is why we strongly recommend that before you make any major decisions regarding your mortgage you speak to a financial advisor to get a professional opinion. Our mortgage advisors have access to the whole of the mortgage market, meaning they can find the right solution for you, and not just make a decision from a limited number of providers.





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