Mortgage Help Page 1

Information on terms and structure of mortgages and how they are calculated

Buying a House Part 5

Buying a property is a huge financial commitment and therefore it is crucial for potential buyers to factor in all additional costs into their budgets.

The most common cost after the solicitor’s fees is stamp duty and this is based on the value of the property.

Stamp duty is levelled in bands of 1% on properties between £125,001 and £250,000, 3% on properties between £250,001 and £500,000 and then 4% on properties above £500,000, for example the stamp duty on a property valued at £200,000 would be £2,000. Read more

Buying a House Part 4.

Every house purchase involves a number of legal aspects and conveyance is the legal process of transferring the ownership of a property.

Ideally buyers should start looking for a conveyance solicitor at the start of the house buying journey. Read more

Buying a House Part 3

The next step in the process is to arrange a mortgage, if the buyer has not already done so.

Finding the right mortgage can be tough especially when there are so many products on the market at present.

A mortgage can either be obtained directly from a lender such as a bank or building society or from a mortgage broker or financial adviser. Read more

Buying a House Part 2

Before commencing with making an offer buyers should find out about the property’s leasehold status, for example:

Freehold:

This means the land on which the property is built is part of the sale.

Leasehold:

This means the land on which the property is built is not part of the sale and potential buyers will have to pay ground rent to the owner of the land. In addition to the ground rent an annual service charge may be payable. Read more

A Guide to Mortgages Part 4

Mortgage lenders can charge interest in a variety of different ways and these are the final.

The tracker rate mortgage:

Most lenders offer this type of rate as they are by far the easiest to understand.

This is very similar to a variable rate mortgage, but it tracks the bank of England’s base rate or the London Interbank Offered Rate (LIBOR) base rate (whether they rise or fall). Read more

A Guide to Mortgages Part 2

As well as deciding on a repayment method, borrowers need to look at the different interest rate products on offer.

The fixed rate mortgage:

With a fixed rate deal the amount repaid each month is at a fixed interest rate for a specified period of time, irrespective of changes in the bank of England’s base rate. This is usually around 2 to 5 years, but many lenders are now offering longer terms such as 10 years. Read more

A Guide to Mortgages

A mortgage is a loan borrowed to buy a property. Then the money is paid back over a fixed period of time, as well as accrued interest. Most banks and building societies offer mortgages, as well as specialist mortgage lending companies.

In a hugely competitive market, building societies and banks are continually updating and extending their range of mortgages. Read more

A Guide to Selling Your Property Part 3

Once all offers have been made and the seller has decided which buyer to go with it is time to move on to the last and most important stages.

Most property experts advise that sellers should budget for legal fees of between 0.5% and 1% of the property’s value. Read more

A Guide to Mortgages Part 3

Borrowers have to pay interest on any debt and mortgages are no different!

The discounted rate mortgage:

A discounted rate mortgage is usually aimed to attract new customers such as first time buyers; this is because it gives them a little breathing space at the start of the mortgage term. This can help them to recoup money they may have paid out on fees and solicitors. Read more

A Guide to Selling Your Property Part 2

Choosing an estate agent can be fraught with risk, it is therefore vital that sellers look at a variety of agents before deciding on one. Read more