What is a mortgage? A mortgage is a loan that is secured against property. Although you do not need a mortgage to buy a property, many people do not have the cash to buy a property so they take advice from a Mortgage Advisor about a suitable mortgage product to help them purchase their property. Usually, the purchasers will pay a deposit towards the purchase an then the balance would be from a mortgage.
If you use a Mortgage Broker they will review the market and find the most suitable mortgage product for your circumstances. Just check what lenders your Mortgage Advisor works with as if you are looking for mortgage advice in Sutton Coldfield they are not all like Central Financial Services who work with a comprehensive range of lenders.
Your Mortgage Advisor should discuss with you the different types of mortgage products available, such as Fixed rate, Variable rate, Tracker rates and the repayment types such as Interest only or Capital and Repayment (shortened to Repayment).
Once you decide to start looking for a property it is best to start engaging with a Mortgage Broker to establish your affordability. No point finding your dream home and not being able to afford it, as this would be very disappointing! Your Mortgage Broker may advise getting an ‘Agreement In Principle’, which involves submitting your details to a lender and getting the approval for a full application. This does not commit you to proceeding and also does not mean you will get a mortgage, but Estate Agents will usually want one of these to put an offer forward to a seller.
Once you have had an offer accepted and you have agreed on a mortgage product with your advisor, they will handle the application to the lender.
You will of course need to appoint a solicitor to deal with the legal aspects of the purchase (‘conveyancing’).
With property prices outstripping peoples salaries, many people look for help getting on the property ladder. Central Financial Services can advise on schemes to help people, such as Shared Ownership (also known as Part Buy/Part rent), Deposit Unlock, Own New. All these schemes are aimed at helping people onto the property ladder with smaller deposits and for Shared Ownership improved affordability.
Sometimes we just want an idea of what our monthly mortgage payments would cost. Your Mortgage Broker can help you with this, but here is a link to our Mortgage Calculator.
