Mortgages

Remortgage

When you remortgage, you are switching your mortgage to another deal, and frequently, another lender. Remortgages can be used for various reasons. Most people simply switch mortgages because it will work out cheaper for them. For example, the introductory discounted interest rate may have finished with your current lender; therefore you could get a discount, or a lower interest rate, with another lender.

It is worth noting that a remortgage is not the best option in all cases. Even if the lender you are considering switching to is offering a lower interest rate, you must take into consideration the facts that:

• The new lender may charge you for valuation and solicitors fees, even if you have already paid these for your mortgage with your current lender.
• If you switch mortgage you could be extending your repayment period. Therefore, although you will be paying less monthly, the total amount you repay could be more. Also you may be able to switch your mortgage deal with your current lender, avoiding any unnecessary costs. Many lenders will allow you to switch your mortgage deal reasonably frequently.

Buy to Let

Becoming a private landlord should not be seen as an easy way of making money. It can be riskier and more complicated. It can also be very time consuming, more than most forms of investment, and there is no guarantee that house prices will rise. That said, having a second property to let to tenants could reap considerable financial rewards over time.

There are 3 main differences in buy to let mortgages:

• Rent Potential – the decision as to whether or not a mortgage will be offered is usually based on the rent you will earn as well as your income. In some cases your income is not ever considered.
• Interest Rate – buy to let mortgages have slightly higher interest rates.
• Larger Deposit – typically a minimum of 20% or 25% of the property’s value is required as a deposit.

When buying a second property to let you will need to decide whether your primary objective is income or capital growth. In other words, are you looking to make a profit month on month or are you looking to make a profit through increased equity from the second property if it increases in value over time? The decision may affect the type of property you purchase, and the location.

There may be a fee for mortgage advice. The precise amount will depend upon circumstances but we estimate that it will be £349.00. Your home may be repossessed if you do not keep up repayments on your mortgage.