Independent Mortgage Advice in London

 

We can provide advice on all types of residential mortgage funding, from mainstream residential to self certification and sub prime as well as Buy to Let mortgages. We pride ourselves on our detailed market knowledge and our proactive approach towards arranging a mortgage that suits your needs and objectives.

 

As independent mortgage advisors we are not tied to any particular product providers. We offer impartial advice based on the most suitable deals available in the whole market. We are regulated by the Financial Services Authority (FSA). All our processes and systems have been in developed in line with their guidelines and our staff are trained to the highest level.

 

Our Mortgage Advisers will be happy to arrange a meeting to discuss your borrowing needs, your affordability and objectives. We are able to provide advice on the different methods of repaying your mortgage as well as different types of products suited to your needs. Our advisers offer advice keeping in mind the economic and market conditions, as well as your overall attitude to risk towards your property.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

 

For mortgage advice we can paid by commission or a fee of typically 0.4% of the loan amount.

 

Methods of Repayment

 

Borrowers have two main options when considering the method of repaying the loan. Payments can be made which consist partly of capital repayment and partly of interest, or interest only leaving the capital to be repaid at the end of the loan term.

 

Capital and interest mortgage

 

Also known as capital repayment mortgages, the capital is repaid back gradually every month and at the end of the term, assuming all repayments have been kept up, the loan is guaranteed to be apid off. If interest rates remain the same for the term of the loan (which is unlikely) the monthly repayment stays the same.

 

At the beginning of the loan term, interest is charged on the full amount of the loan and the monthly repayments are mainly interest charges and very little capital is repaid. As the loan progresses, however, and more capital is repaid, the interest is charged on a steadily decreasing amount and the proportions of interest and capital shifts.

 

 
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The figure below shows a loan of £50,000, being repaid by the capital and interest method at 6% interest over 25 years.

 

Interest Only Mortgage

 

An alternative method of mortgage loan repayment is the interest only mortgage. Only interest is paid to the lender on the loan throughout its term, the capital remaining outstanding until the end of the term.

 

The borrower usually takes out a long term investment to provide the funds required to repay the loan at the end of the mortgage term. Since the capital balance of the loan remains unaltered throughout the term, the monthly interest payments remain the same, provided interest rates remain the same, regardless of the term of the loan.

 

This method of repayment is more risky as it relies on Investment performance that is not guaranteed.

 

The figure below shows the status of a loan of £50,000, being repaid by the interest method at 6% interest for a 25 year term.

 

 

Our Independent Financial Advisers can provide advice on a suitable repayment vehicle if you wish to arrange an interest only mortgage.

 

Mortgage Products

 

There are a wide range of interest rate options available on mortgage loans. Each type of product is suitable dependent on a clients circumstances and on the economic conditions prevalent at the time of effecting the loan.

 

•  Variable Rate Mortgages

 

•  Standard Variable Rate

 

•  Discounted

 

•  Tracker

 

•  Fixed Rate Mortgages

 

•  Capped and/or Collared Mortgages

 

•  Flexible Mortgages

 

•  Offset Mortgages

 

•  Deferred Interest

 

•  CAT Standard Mortgages

 

The above list illustrates just a few of the various different types of products available. For full details please contact us and one of our Advisers will be happy to discuss the details of each type of mortgage product and ascertain the suitability of a particular type.

 

Annual Percentage Rate (APR): The APR is the interest rate on a loan calculated by using a standard formula laid down by the government. The purpose of the APR is to enable lenders to compare different products in the market place to assess their costs using the same benchmark. The APR is calculated with reference to a total charge for credit or TCC. Not all costs of borrowing are included in this. The APR generally includes the interest charged on the mortgage and the setting up costs of the mortgage. The setting up costs includes survey costs, administration and/or booking fees and higher lending charge. Except for a standard redemption fee charged by the lender at the end of the contracted term, any costs, fees and charges payable after completion are excluded (for example, late payment charges, insurance and life assurance premiums, arrears charges, early repayment charges, claw backs).

 

WE ARE INDEPENDENT MORTGAGE BROKERS