• Capital and Interest Mortgage

    This is the simplest type of mortgage. The payments you make to the lender every month pay off both the capital and the interest from the loan. Provided you keep up the payments, you are guaranteed to pay off the loan by the end of the term agreed (usually 25 years).The lender calculates your monthly repayments depending on the amount borrowed, how long for, the interest rate & how the rate you have chosen is set.

    Capital Interest
  • Interest Only Mortgage
    Don't you mean endowment mortgage?
    For many people, interest only mortgages are called 'endowment mortgages' or even 'pension mortgages', but strictly speaking these names describe an interest only mortgage plus the method by which it is repaid. In other words, an endowment mortgage is an interest only loan that is repaid by the proceeds of an endowment policy etc.


    How they Work
    An interest only mortgage is where the lender (a bank or building society usually) only charges you interest on the loan you've agreed. You don't pay the capital back until the end of the mortgage. The lender will usually ask you at the outset, to provide an investment plan of one type or another to repay the loan at the end of the term, such as an endowment policy or ISA savings plan, but sometimes they will leave the repayment plan entirely up to you.
    Every month, you then pay this interest to the lender for the duration of the loan. The lender calculates your monthly repayments depending upon how the rate you have chosen is set. At the end of the loan period, the lender will expect the initial capital they lend you to be repaid in full by whatever means you have arranged.
     
    Capital Interest
  • Flexible Mortgages

    For many people, interest only mortgages are called 'endowment mortgages' or even 'pension mortgages', but strictly speaking these names describe an interest only mortgage plus the method by which it is repaid. In other words, an endowment mortgage is an interest only loan that is repaid by the proceeds of an endowment policy etc.The flexible mortgage is a relatively new type of mortgage, or at least new in the UK. It was invented & has been used in Australia for many years, but is now growing in popularity in this country as more and more lenders adopt it.


    A Bit of Background
    The traditional UK mortgage has been with us for many generations. It was designed with the assumption that people had full time employment and could therefore cope with set monthly payments for a 25 year period. However, as many people have discovered, the traditional mortgage does not always cope well with modern employment trends, such as contract working, job sharing and part time work. This is where the flexible mortgage comes in. It has the facility for both over and underpayments built into the loan. What this means is you can overpay your mortgage when finances allow (pay rise, bonus, an inheritance etc.), and then, providing you have made overpayments in the past, underpay when finances are tight (job loss, change in circumstance etc).


    A Generic Example
    If you overpay your loan by £50/month for say five years on a flexible mortgage, that cumulative amount is then made available as a cash reserve for you to draw on at any time during the remainder of the mortgage term. This cash reserve can normally be drawn on for such things as, taking payment holidays or making large purchases. Indeed some lenders actually issue the borrower with a cheque book and encourage them to use the account as an all encompassing bank account. However the amount you can withdraw is limited by the original sum of the loan.
    The main benefit of borrowing against your 'mortgage account' is that mortgages are usually the cheapest form of borrowing. In other words, you'll pay less interest on the amount you borrow! If on the other hand, you overpay but never make any withdrawals, you can save a significant amount of interest over the life of the loan. This is because most lenders who offer this type of loan calculate the interest you pay on a daily basis (see what to look for), therefore any overpayment comes immediately off the debt and interest payments are adjusted accordingly.
  • Offset Mortgages

    Pull all of your finances into a single account so it runs your current account, mortgage, savings and personal loan accounts together. On a daily basis, it adds up all of your assets and your savings, plus the money in your current account, and offsets them against your debts (mortgage and loans)
  • Right to Buy

    The Right To Buy Scheme is considered by many to be one of the greatest opportunities open to council tenants to get on the property ladder. Despite this, the Right to Buy Scheme is little understood and it is this lack of understanding that prevents many tenants from exercising this right and getting their first foothold on the property ladder.


    So far, nearly 1.6 million individuals have exercised their right to buy and this figure suggests that, although not widely understood, the right to buy scheme is gaining momentum across the UK.


    Can Anyone Get A Right to Buy Mortgage?
    Right to buy schemes operate purely for council tenants who have been tenants in the council property for at least 2 years. Once the tenant has met the minimum length of time, which is currently set at 2 years in their council property for tenancies that began before 18 January 2005, they are able to purchase the property at a price that is lower than market value. If the tenancy began on or after 18 January 2005 (or after 12 October 2004 in Northern Ireland) then the minimum length of time is 5 years.


    Almost any council tenant is entitled to exercise their right to buy, provided that they are in a suitably secure financial position in order to be able to obtain a mortgage. There are some potential exceptions which include those who have been housed in their property as a condition of their employment, or those allocated housing that has been provided especially for disabled or elderly residents.


    In order to exercise the right to buy, the tenant must be renting their property from: a local authority, a housing action trust, a non-charitable housing association or, if they are in Northern Ireland, the Northern Ireland Housing Executive.


    Further Benefits of Right to Buy for the Community
    One of the sociological benefits of the right to buy scheme is that it encourages more affluent council tenants to stay in the area that they have lived in for some time, thus diversifying the residential mix and preventing a ghetto-style issue arising in certain council property areas. This right to buy scheme has resulted in much more stable and varied communities, which has a positive knock-on effect on all properties in the locality.


    For Right To Buy mortgages the overall cost comparison is 5.5% APRC, The Actual rate available will depend upon your circumstances. Please ask for a personalised illustration.
  • Mortgage Rate Type

    All mortgage products fall in to two main categories: fixed rate mortgages and variable rate mortgages. A fixed rate mortgage is where the interest rate on the loan is fixed for a given period of time, usually 2 - 5 years. A variable rate mortgage is where the interest rate on the loan varies with the underlying Bank of England base rate (BR).


    All other mortgages come under fixed rate, variable or a combination of both. These include:
     
    • Fixed rate mortgages - allow you to fix the rate of interest you will pay on your mortgage for an agreed period. The most popular fixed rate mortgages terms are two-year, three-year and five-year deals, but it is possible to get a fixed-rate mortgage for anything from six months to 25 years
    • Discount mortgages - offer a percentage off a lender's standard variable rate (SVR) for a set period of normally two to three years (although the time period can be longer depending on the deal). For example, if a lender's SVR is 5% and the discount is 1.5%, you will pay a rate of 3.5% on your mortgage. With a stepped discount mortgage, your discount changes at one or more set points during the deal period, so you could have a discount of 2% below the SVR in your first year, and a 1% discount in your second year, for example.
    • Capped mortgages - very similar to a fixed rate mortgage, in that there is a maximum interest rate set for a given period of time, and the rate you pay is guaranteed not to go above that rate for the agreed period. However, should the BR fall during that period the rate you pay for your mortgage will 'track' the interest rate downwards, reducing your mortgage repayments.
    • Flexible mortgages - allow you to make over payments, underpayments, take payment holidays, calculate interest daily and more and often suit people with a fluctuating income e.g. commission-only sales people.
    • Tracker mortgages - follow the BR or the lender's Standard variable rate (SVR), plus or minus a certain percentage. For example, if your two-year tracker has a rate of Base Rate (BR) +0.9%, if the Base Rate is 3%, your product rate will be 3.9%. If the BR drops to 2%, your rate will also fall to 2.9%

    To find out the pros and cons of each type of mortgage, please call to arrange an appointment on freephone 0808 22 23 24 5
  • Secured Loan

    A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral — in the event that the borrower defaults, the creditor takes possession of the asset used as collateral and may sell it to regain some or all of the amount originally lent to the borrower, for example, foreclosure of a home.


    The benefits of a secured loan
     
    • More generous income criteria, as it is based on an affordability calculation
    • Most legal purposes accepted as purpose of loan
    • Arrears considered on many plans
    • First mortgage can be left in unaffected
    • All costs e.g. valuation and BSQ paid for by the Master Broker
    • Quicker Completion time
    • Secured loan could be arranged with the borrower able to keep existing mortgage rate
    • Clients can borrow between 5-30 yrs
    • More flexible criteria
    • Advances from £5,000 - £No Upper limit (on referral)
    • Redemption only 1 months Interest (plus payment of current month)
    • Broker fees / lender
    • Fees are added to the loan
     
    For secured loans we act as introducer's only.

    YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

  • Wills and Estate Planning

    The increasing complexity of modern life styles has made Wills and Estate Planning more important than ever before. Partnerships and second marriages are common; estate valuations are often larger than expected due to house prices. The threat of inheritance tax, nursing home care fees, loss of right to occupy, loss of state benefits and the possibility of our children not inheriting at all, make having a Will so, so important!


    Without a Will - Married people
    If you die without having made a Will, the Intestacy Rules will be applied in an arbitrary manner. A spouse may not receive the whole of the estate but may have to share the estate with her children. If there are no children then this may lead to your spouse having to share your estate with relatives (e.g. brothers, sisters, nieces and nephews) ones perhaps, you never intended to benefit from your estate.


    Without a Will
    If you die without having made a Will, the Intestacy Rules will be applied in an arbitrary manner. A spouse may not receive the whole of the estate but may have to share the estate with her children. If there are no children then this may lead to your spouse having to share your estate with relatives (e.g. brothers, sisters, nieces and nephews) ones perhaps, you never intended to benefit from your estate.


    Without a Will - Partners
    Under the Rules of Intestacy there are no provisions for partners; the estate of the deceased partner would by-pass the other partner and go immediately to the decease’s children or family.


    ‘Home-Made’ Wills
    Many of these Wills are unsuitable for handling the estate. Many omit to provide for a substitute if the main beneficiary does not survive, they fail to take advantage of tax savings, and they will not protect the home from care home fees and often refer to assets not owned at death.

    A Properly Drafted Will
    A properly drafted Will - should take into account inheritance tax issues - should protect the home from nursing home care fees - should give security of tenure to each other and guarantee the children will inherit. In addition Executors, Trustees and Guardians will be appointed, details of any gifts and their beneficiaries, pets cared for, trusts inserted, funeral arrangements made etc.


    Maintained Wills
    Having gone to al the trouble of having a Will carefully drafted, it is important to make sure the Will is kept current. Wills should be reviewed at least every 3 to 5 years; failure to review a Will may mean that a Will no longer reflects current wishes. Wills not only require updating due to personal and/or family circumstances but are also subject to changes in legislation, budgets, trust law and tax. Secure storage with Full Aftercare (free updates as and when required) is strongly advised.


    For wills and estate planning, we usually act as introducers only.
  • Equity Release

    'Equity release schemes are either lifetime mortgages or home reversion plans and allow you to use the equity in your home to release much needed cash from your home, whilst retaining the right to live in it for the rest of your life.


    You'll need to get specific information about both so you can decide which one is right for you. They work differently and are quite complicated, so you will want to get professional financial advice.


    There are various ways you can release some of the market value (equity) in your property. For example you could downsize to a smaller property or one of lower value, perhaps by moving to a different part of the UK where house prices are cheaper. Downsizing will give you maximum value from your home, but there may be disadvantages such as the hassle, disruption and cost of moving. You may also be very attached to the area where you currently live.


    There are 3 main choices when it comes to releasing equity from your home, which are:

    Lifetime Mortgages - a type of Equity Release plan that is a loan secured on your home. No monthly repayments are made on the loan until the death of the last surviving partner or their moving permanently into long term car. You can opt for a roll-up or a fixed-rate mortgage.

    Home Reversion Plans - a type of Equity Release plan that involves all or part of your home being sold to a home reversion company. All plan providers give you the right to remain in your home for life

    Drawdown Plans - a facility within a lifetime mortgage that allows you to take cash payments in stages as and when you require them.

    All of these schemes can be helpful in certain circumstances and there may be more suitable methods of raising the funds you need.


    Advantages of Equity Release
    Retirement can be a time of fixed income and many people have valuable homes but little spare cash. Equity release can provide tax-free cash to help alleviate this problem.

    Flexibility - you can use the cash you release to spend as you wish. You may want to use the money to take that holiday you've always dreamed of or perhaps visiting family that you havent seen for years. You might want to buy a new, more reliable car to help you get around. You could even use the extra funds to help support your family, children or grandchildren. Many people simply use the money they release to make up the shortfall some people experience when they retire.

    Products are available where no payments are required from you until your home is sold (other than initial charges)

    You remain in your home for the rest of your life if you wish

    Further cash can be taken by equity release at later dates (depending on how much you take initially)

    You still own your home with a Lifetime Mortgage, so all growth in the value (if there is any) belongs to you

    You can usually still move home (subject to certain restrictions)


    Things to bear in mind with Equity Release
    Equity release could affect your entitlement to some state benefits and may affect your tax position All equity release plans will reduce the value of your estate, therefore the amount that will go to your beneficiaries on your death. This could be positive or negative depending on your financial circumstances and the value of your estate in relation to inheritance tax.


    Equity release can limit your options for moving house in the later years
    With a home reversion scheme, when you sell a part of your home, you will probably not get the full market value. An Equity Release Plan will reduce the value of your estate, will not be suitable for everyone and may affect your entitlement to state benefits. To understand the features and risks, ask for a personalised illustration from your mortgage advisor


    For Equity release mortgages we usually act as introducers

    ‘Equity release‘ refers to home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

  • Life Assurance

    Life insurance is a contract between the policy holder and the insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. In return, the policy holder agrees to pay a stipulated amount (the "premium") at regular intervals or in lump sums. For protection insurance we offer products from a panel of providers

    The value for the policy owner is the 'peace of mind' in knowing that the death of the insured person will not result in financial hardship.

    Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.

     

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Your home may be repossessed if you do not keep up repayments on your mortgage