Buying a home, moving home, or improving a home.
Your mortgage advisor at SaintRock mortgage broker Morecambe Bay will use their mortgage calculators and mortgage tools to compare first-time home buyer mortgages, second home mortgages, and Buy-to-let mortgages. That's why we find the best deals.
A buy-to-let mortgage is a mortgage that has been designed specifically for people looking to purchase property as an investment, rather than as somewhere to live. If you re buying a property and intend to rent it out to tenants, you need a buy-to-let mortgage.
Whether you’re an experienced landlord, or are looking to buy your first rental property, we are here to help. From borrowing criteria to mortgage rates, our dedicated advisors cover everything you should consider when taking out a buy-to-let mortgage.
Check if you could save by remortgaging onto a lower interest rate.
Fixed rate mortgages have an interest rate that stays the same for a set period. This is generally between two and five years, although it is possible to get a longer fixed term. Your repayments are the same every month, so you’re protected from rises in interest rates. Most will charge you a penalty - known as an early repayment charge (ERC) if you choose to leave the deal before the end of the fixed term.
Interest rates adjust periodically with a variable rate mortgage, which means repayments may change throughout the loan term. Usually, the interest rate changes in relation to another rate; the Bank of England's base rate has a big influence on variable interest rates, as does the base rate of each lender.
For standard variable rate (SVR) mortgages, each lender has an SVR that they can move when they like. This often roughly follows the Bank of England's base rate movements. SVRs can vary massively between lenders.
Some mortgage deals carry arrangement fees, which can vary from a few hundred pounds up to a couple of thousand.
These set up costs can sometimes be made up of two fees. An increasing number of lenders charge a non-refundable booking fee, which is effectively a product reservation fee. If your house purchase falls through and you don’t end up taking the mortgage deal, you won’t get this fee back.
The second type of fee is an arrangement fee which you pay on completion of the mortgage so you won't have to pay it if, for any reason, you don't take the mortgage.
Overpaying on your mortgage could help you to pay it off early and save money on interest payments.
You will likely find that you have more mortgage deals available to choose from if you have a good credit history, so it’s worth making sure that your credit report is as good as it can be before applying for a mortgage. Steps like paying off any outstanding borrowed credit you owe and making sure your current address is on the electoral role can help to improve your credit score.
There are 3 credit reference agencies:
The more money you can save as a deposit, the less you’ll need to borrow as a mortgage loan. Having a bigger deposit can help you get access to more competitive mortgage rates. Lenders will often have a maximum loan to value they’re prepared to offer you, and the rest will need to be made up with a deposit from savings or sometime a gift from family.