Buying a home is likely to be the biggest purchase you’ll ever make. This is where expert advice can help.
We’ll support you every step of the way from application to completion. It’s a big step and could be much easier to take if you’re well-informed and get some good advice.
A mortgage is a loan that you take out to buy a property. Most run for 25 years but can be shorter or longer. The money you borrow is called the capital and the lender charges you interest on it until it’s repaid. The loan is ‘secured’ against the value of your home until it’s paid off. If you can’t keep up your repayments, the lender can repossess your home and sell it, so they get their money back.
Changes in interest rates can affect the cost of your mortgage. When interest rates rise, your monthly payments may increase, and vice versa. Borrowers should consider the impact of interest rate changes on their mortgage repayments.
You borrow an agreed amount and repay it monthly, until the total is repaid within the duration of the agreement. As well as repaying the money, you’ll pay interest too. To find the most suitable mortgage deal on your own involves a lot of research and talking through your circumstances many times with different lenders. We work with lenders to find the mortgage that suits you best. We could also improve your chances of being accepted for a mortgage, knowing which lenders are most appropriate for your circumstances.
Monthly repayments will be cheaper than they would be on a repayment mortgage for the same amount of borrowing, because you’re only repaying the interest. But the total long-term cost will be higher because you’re not actually reducing the original debt each month, meaning more interest accrues. The eligibility criteria is often tougher on these mortgages, they’re offered by fewer lenders, and you’d need to prove you can repay the amount borrowed as a lump sum. Having a mortgage adviser to guide you through the complexities could be beneficial.
A variable rate mortgage links the interest rate payable to the Bank of England’s (BoE) Bank Rates. This means the amount you repay will vary in line with the rates set by the BoE. With a fixed-rate mortgage your repayments will be the same each month either for the full duration or over a set period. You won’t benefit when rates are lower, but you also won’t need to pay more when interest rates rise. There’s pros and cons to each, and we can guide you towards which is best for your personal circumstances and current market conditions.
There are other types of mortgages available too, like buy-to-let and tracker mortgages, depending on your needs, and a financial adviser could help you with these.
A buy-to-let mortgage is designed for people who want to buy a property to rent out rather than live in. You’ll usually need a bigger deposit and the amount you can borrow often depends on the rental income the property is expected to generate. Finding the right buy-to-let deal can be complex, but we can work with all buy-to-let lenders to help you choose the most suitable option. We could also help to improve your chances of approval by matching you with lenders who understand your situation. There are other types of mortgages available, such as Houses with Multiple Occupancy (HMO) and buy-to-let for limited companies. Depending on your needs a Sandringham Partner could help you with these too.
Find an adviser in your area and get the conversation started
Suite 15
The Media Centre
7 Northumberland Street
Huddersfield
HD1 1RL
Sandringham Financial Partners Ltd (‘Sandringham’) is authorised and regulated by the Financial Conduct Authority. FCA Number: 581304. Registered Office: Suite 15, The Media Centre, 7 Northumberland Street, Huddersfield, HD1 1RL. Registered in England and Wales No: 08022795. VAT Registered: 235 3237 81. Sandringham Financial Partners Ltd is a wholly owned subsidiary of M&G plc (Registered Number 11444019).
