Are you looking to get a mortgage loan to enable you buy a property? Do you need a broker to mediate between you and a lender? Remortgage Fast has got all the solutions you seek. As a fast growing mortgage and remortgage broker, we endeavor to provide clients with the perfect service to suit their budget. Whether you want to buy a property in Southampton, Portsmouth, Basingstoke, Gosport, Andover, Waterlooville, Aldershot, Farnborough, Fareham/Portchester, Eastleigh, Havant, Winchester, Fleet or Petersfield, we got you covered.
If you need guidance on the entire mortgaging process, you can either go through the rest of this content or simply call the number at the top of the page – and one of our experts will be available to answer your queries.
The Basics of Mortgage
What is a Home Loan? This is a mortgage you can secure through a lender for a particular number of years – 10, 15 to 30 years – depending on the rules that apply in your county. To get a mortgage, you need a high or average credit score.
A credit score is determined by your debt-to-income ratio, which helps the lenders determine the possibility of you paying back the loan. Although, there are programs that assist people with low scores to still access home loans. A broker like Remortgage Fast can help you. You can just fill out the contact form and we will get back to you with a quote that fits your budget.
Furthermore, you should know that there are 3 major parts of a home loan: The monthly payment, the Down payment and the closing fees.
The monthly payment includes the property taxes, home insurance, interest and principal payment and the mortgage insurance – which depends on the type of home loan you take (we are still coming to the 2 types of loans). Generally, monthly payment is a specific amount of money you pay every month till the loan is paid off.
The percentage of the total selling price of the property you want to buy, which is paid to the owner is a down payment. Most down payments could be as little as 3% of the purchase price or even up to 20%. The amount you pay depends on the lender you choose to work with, your reason for buying the property (residential or for business purposes), the type of loan and your credit history. However, there are loans that don’t need you to make any down payment – like those the federal government has insured. But you need to go through repayment terms before making any down payment.
Closing fees are costs paid on the final day of purchase. You can negotiate the fees or get an ideal mortgaging broker like Remortgage Fast to help you in getting a good deal. The seller also pays a specific amount of closing cost, and this is best discussed before any contract between the seller and the buyer is signed in the first place. Normally, the closing fees buyers pay is between 2-5% of the total selling price of the property. However, lending institutions rarely allow buyers roll these closing fees into the loan. The fees are basically used to offset property appraisal fees, house inspection fees, government taxes, legal costs and other bills.
Types of Mortgage Loans
There are about 14 types of mortgages in the UK. Here’s a brief definition of 4 of the most popular loan types.
Repayment mortgage – is pretty much the normal way a mortgage is paid. You pay back a part of the loan you collected and a part of the interest owed. If you take a 20 year plan for example, you are expected to pay up the money you borrowed within that period and own the home at the end of the 20th year. However, if you wish to move to a new home before the last year, you can “port” with the mortgage.
Interest only mortgage – involves paying only the interest monthly then you can pay back the main loan when the period ends. It allows you save money elsewhere or get a huge chunk from an inheritance or lottery to repay. If you can’t pay, you can sell the house to repay – and your house might have added in value at the time. However, most lenders will want to see a proof that will pay at the end of the period.
Fixed rate and Variable rate mortgage – As for the fixed rate, a borrower knows how much they will pay for the period of time (could be 2-10 years). Just that when other mortgages get lower, you are stuck with the particular rate – and also when other mortgages rise. While for variable rates, the interest you pay is determined by the base rate of the Bank of England and other market factors. The Tracker Mortgage is similar to the Variable rate mortgage. They track the country’s central bank’s base rate.
There’s also the Buy-to-let mortgage, first time buyer mortgage, flexible mortgage, 95% mortgage, offset mortgage, cash back mortgage and many others. Therefore, if you are any where in or around Hampshire and you are not sure of what mortgage plan to go with, call the number at the top of our page – and an expert from Remortgage Fast will be glad to hear from you.
How To meet up with a Mortgage without going Broke?
With hopes that the economy will bounce back after the Brexit, not everyone can easily pay mortgage interests as quickly as they thought they could. Therefore, you need to map out a budget to help you figure out how much you can afford to pay monthly. If you are upside down in your mortgage payments, you can request for a temporary reduction so that you will meet up. However, there are 3 options we will suggest to assist you in making a proper decision.
1. Consider talking to your Broker or Lending Institution
If your financial situation is really biting deep into your purse, you should talk to your broker or lender to see if they can provide you with a refinancing or reduction option.
2. Inquire about Government Mortgage Relief Programs
There are programs the government offers to help homeowners pay up their mortgage or refinance. The downside to this is that, you’re likely to start owing more than the actual worth of your home.
3. Think about a short sale
When you’re unable to keep up with payment, it’s only wise you consider short sale. You can negotiate with your broker or lending institution to help sell your property – but it’s likely to be at a price below the amount you’re even owing. Most lenders only consider this option if they will benefit from it. But make sure you talk to a tax adviser before you make such decisions because such transactions will be taxed.
Therefore, no matter where you are in Southampton, Portsmouth, Basingstoke, Gosport, Andover, Waterlooville, Aldershot, Farnborough, Fareham/Portchester, Eastleigh, Havant, Winchester, Fleet or Petersfield, Remortgage Fast can assist you with any mortgage issues you have. Call us today via the number on top of the page, and we will gladly provide answers to your questions.