Penny House Types of mortgages
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First Time Buyers
If you’re planning to buy your first home, you are a First Time Buyer. Unfortunately, getting a mortgage to purchase your first home can be quite difficult. For one, most vendors are reluctant to accept mortgage applications from first-time buyers unless you obtain an AIP (Agreement in Principle) before making a mortgage offer.Similarly, your credit score and income significantly impact how much you can borrow. Stronger credit scores and higher incomes are more likely to get higher offers, but these vary from lender to lender.It’s advisable to work with a mortgage expert as a First Time Buyer to secure competitive mortgage deals. Mortgage experts have enough knowledge and experience and can help you every step of the way, eliminating any hurdles and financial jargon. This makes your first-time mortgage process seamless and easier.If you want to obtain a mortgage that’s best suited for your needs and budget as a First Time Buyer.
Home mover
Home mover mortgages refer to the type of mortgage you get when you have a mortgage on your current home but plan to move to a new house. They’re normally classified into two – porting and remortgaging.Porting is the most suitable form of home mover mortgage, and it allows you to remain on your current mortgage once you move into your new property. Your lender simply transfers your mortgage to the new home in a process known as porting.However, there are some limitations to porting. For instance, if your financial situation isn't as good as when you first applied for the mortgage, your lender may refuse your application to port. Similarly, although rare, some mortgages may not be portable, forcing you to remortgage.Remortgaging is simply changing your current mortgage deal. It’s never advisable to remortgage when moving unless you’re downsizing because it can be costly.
-------- Speak to us today for guidance and advice on porting and remortgaging.
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Buy to Let
If you plan to purchase a property and rent it out for profit, you need a Buy to Let mortgage. Buy to Let mortgages allow you to legally rent out your home with full consent from your lender. Its application process is more stringent, so expect additional criteria that are not normally included in the standard residential mortgage. For instance, some lenders may require you to have a salary of at least £25,000 and maintain a good credit score to qualify. The interest rates for Buy to Let mortgages are much higher than traditional mortgages, and you need a minimum deposit of 25%. It’s essential to note that you cannot live in your Buy to Let mortgage because it’s designed for profit. With Buy to Let mortgages, how much you can borrow is determined by the potential rental yield of the property. Work with our experts today to get the best possible deal on a Buy to Let mortgage and maximise your profit.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage
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Remortgage
Remortgaging refers to the process of changing your current mortgage deal. You can either change your lender and acquire a new mortgage or stay with the same lender but change your mortgage deal.
Remortgaging is an excellent option if:
• Your fixed rate is due to end
• Your home rises considerably in value
• You think interest rates will rise
• You’re not allowed to make overpayments
• You want flexible mortgage benefits
• You want to borrow more money
It’s important to note that although remortgaging is beneficial in some cases, it may not be the right solution for you. For example, if your current mortgage has high exit fees, remortgaging will be costly and outweigh your savings. Similarly, if you’re close to paying off your mortgage, remortgaging won’t be necessary. Consult with our mortgage experts today to advise you accordingly on remortgaging. They can assess your current mortgage and remortgage offers and help you decide whether remortgaging will benefit or harm you.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Self-employed mortgages
If you’re self-employed, you can secure a competitive mortgage deal by simply applying for a mortgage. There’s no specific mortgage that’s solely reserved for self-employed individuals. As long as you can prove that your income is steady and make your repayments, your mortgage application can be accepted by various lenders.When it comes to mortgages for self-employed individuals, lenders look at three things:
Your income
Business expenses
And, business security
You’ll be required to provide various documentation to prove your self-employed income, so be prepared when your lender requests any information. With a self-employed mortgage, how much you borrow is determined by calculating an average of your recent annual earnings multiplied by an income multiple, which normally ranges between four and a half and five.Working with experts like us when applying for a mortgage as a self-employed individual is advisable to help you navigate the process.
We’ll guide you through every aspect for a seamless mortgage application experience.
Please note this is only an estimate and can vary depending on the lender and your personal circumstances