About mortgages

Fixed Rate

A fixed rate mortgage is where your interest rate is guaranteed to stay the same for a set period of time. This can provide peace of mind because unlike a variable rate mortgage – such as a discount or tracker – you’ll know exactly how much you need to repay each month during the fixed rate period. Typically, you can fix your mortgage rate for two, three, five or ten years.

When your fixed-rate period comes to an end, your lender may transfer you onto a standard-variable-rate (SVR) mortgage.

If you do need to pay off your mortgage while you’re in a fixed period (if you want to move house or remortgage), please be aware that this can be expensive as you may need to pay an Early Repayment Charge (ERC).

When comparing deals, you should look closely at the up-front fees, ERCs, and also if you’re able to make overpayments without facing any penalties.

Tracker

A tracker mortgage is where the interest rate you pay is based on an external rate, usually the Bank of England base rate plus a set percentage.

If the Bank of England base rate rises, your monthly payments increase, with the additional increase covering the interest charges only. If the base rate falls, this will mean a reduction in your interest rate.

Typically, a tracker mortgage is linked to external factors such as the base rate for a set period, before changing to the lender’s standard variable rate. For this reason, you may want to switch deals by remortgaging at the end of the set period.

Discounted

A discounted mortgage is where the interest rate you pay is at a set amount below the lender’s standard variable rate (SVR) for either a set period or the whole mortgage. This type of mortgage is a variable-rate mortgage, which means the amount you pay could change from month to month.

Typically, a discount mortgage is usually offered for a limited period between two and five years. The longer the discounted period, the smaller the amount of discount given.

At the end of the discount period, the rate will change to the lender’s SVR. For this reason, you may want to switch deals by remortgaging at the end of the set period.

Standard Variable Rate (SVR)

A standard variable rate mortgage is what your lender will transfer you to when a fixed, tracker or discount deal ends. Each lender sets its own standard variable rate (SVR), which is the interest rate that you’ll be charged if you don’t remortgage.

If the lender increases its SVR, your monthly payments may change. SVR mortgages can provide a level of flexibility as you’re unlikely to face any Early Repayment Charges.

Typically, you pay more on a lender’s SVR than on a fixed-term deal. A lender can increase or decrease the SVR by any amount and at any time, and you have no control over these changes. For this reason, you may want to switch by remortgaging to a new deal.

Repayment methods

Capital Repayment

This is where the amount you repay each month goes towards paying off the amount you borrowed. At the start of your mortgage, the majority of what you pay back every month will be used to pay the interest. However, over time, the interest element becomes less and a higher proportion is used to pay off your capital. By the end of your mortgage, both the interest and capital will be paid off.

Interest Only

With an interest-only mortgage, the amount you pay back each month only covers your interest payments, it will not repay the capital you borrowed. With that in mind, you need to make sure that you have an arrangement in place to repay the capital at the end of your mortgage term.

Part and Part

A part and part mortgage is a combination of the above. As with Interest Only it will be your responsibility to repay all the capital by the end of the mortgage term.

Mortgages for International Clients

If you’re an international buyer or a UK resident living abroad looking to purchase property in the UK, the options available to you will be different to those based in the UK.

The good news is that we have a wealth of knowledge in international mortgages and a team who can arrange mortgage solutions for foreign investors and expats looking to finance property in the UK. We are an experienced brokerage specialising in overseas clients looking to arrange UK-based finance.

We understand the complex nature of international mortgage lending and work with many financial institutions who have a flexible approach to underwriting, tailoring a mortgage specific to your needs. We typically arrange mortgages for buyers from within the EU, Asia, Middle East and US.

Investment

If you’re managing just one rental property or a full-time portfolio of properties, you want to generate the best possible return on your investment.

With buy-to-let a popular investment option and many years of experience in dealing with both small and large investors, we have the depth of knowledge and access to a wide range of mortgages to suit your needs.

Our expertise includes individual and commercial investment mortgages and bespoke investment property finance to fund purchases or refinance portfolios.

Commercial

If you’re looking to purchase or refinance an existing asset or portfolio, our extensive network of specialist mortgage lenders covers the commercial mortgage and commercial investment mortgage markets.

We work on your behalf to finance and refinance commercial building projects and purchase of commercial property including office blocks, industrial estates, agricultural land, office buildings and mixed-use properties.

A commercial mortgage gives you greater flexibility in a manageable and affordable way, where lending can be arranged at up to 80% loan-to-value, typically on a margin over Bank of England base rate or alternative index. These facilities can be set up in personal names, company names, LLPs and trusts.

Later Life Finance

In an ageing population, we recognise the importance of providing specialised advice for those looking for a mortgage later in life.

Later Life Finance can help a variety of client needs such as: repaying an existing mortgage, supplementing retirement income, home improvements or providing financial assistance to your family.

We deliver solutions tailored to your personal situation and advise on the whole range of Later Life Finances such as Lifetime Mortgages, Retirement and Interest only mortgages.

Lifetime Mortgages

A Lifetime mortgage is a loan secured against your property which does not require monthly repayments. You retain ownership of your property and the interest payable on your mortgage is usually rolled up and added to the loan. However, if you prefer, some plans now offer the flexibility where you can pay the interest. You can access some of your equity through a lump sum or a combination of a lump sum and drawdown facility. The loan and the rolled up interest is repaid when the last remaining person dies or moves into permanent long-term care. The amount you can borrow depends on your age and value of your property.

With a Lifetime mortgage, you should be aware that this will not be suitable for everyone, may reduce your options for moving and selling your home in the future, will reduce the value of your estate and may affect your entitlement to state benefits.

Retirement and Interest Only Mortgages

Retirement Interest only mortgages have improved over recent years and are available without a fixed term, which means the mortgage can continue until you die or move into permanent long-term care. Retirement Interest only and Interest only plans are both subject to an affordability assessment, so you will need sufficient income to afford the monthly repayments on your mortgage.

Bridging Finance

A bridging loan is a short-term secured finance option for buying property that ‘bridges’ the financial gap between the sale of your old property and the purchase of a new one.

Our team can help with a range of borrower needs at affordable rates if you’re moving but are yet to sell your property. Providing you meet the eligibility criteria and have an exit strategy in place that is deemed valid by the lender, you can use the funds for a variety of things.

A bridging loan is a great solution for borrowers who need finance temporarily and quickly. As long as you have equity, a way of paying off the loan and sufficient security, it’s possible to be eligible for a property bridging loan. We are usually able to find an alternative by utilising other assets at considerably cheaper rates and charges.

Residential

If you’re buying your first home, looking to move up the property ladder, or coming to the end of your current deal and want to move your mortgage, we can help you to find the most suitable residential mortgage from over 100 lenders.

We have access to a wide range of competitively priced mortgage options with great rates so you can find the right residential mortgage for your circumstances, safe in the knowledge that you’re getting the best possible deal.

Our expert team provides advice and recommendations from a comprehensive range of lending institutions and guides you through the process from start to finish. We manage all the time- consuming paperwork and research, delivering you your mortgage offer in a fast, efficient timeframe.