Looking for a mortgage? Carrington Carr Home Finance can help you find the most appropriate mortgage that is tailored to your needs and lifestyle.
Simply complete the form below and one of our trained mortgage advisors will contact you shortly.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The fee for our service is typically 1.99% of the loan amount. The precise amount will depend on your circumstances.
We all know the old saying don’t we? Home is where the heart is. Well, your home is also where a great big chunk of your money is.
There is no doubt that decisions about your home are going to be some of the biggest you ever make - and an integral part of that decision will involve your home loan, or mortgage. Whether you are looking for a new mortgage, remortgaging to find a better deal, or buying for the first time, one thing is for sure - you will need to do your homework.
First of all, stop throwing your money down the drain!
Homeowners across the UK could potentially lose thousands of pounds over the whole term of the mortgage by not shopping around for the best deals when they move. For first time buyers, that first step of the housing ladder is a lot higher up than it used to be - you may well find that taking the time to shop around will give you the lift you need. There are hundreds of deals out there and a huge difference between the cheapest and most expensive.
Even if you are planning to switch lenders in a few years time, any mortgage is a massive long-term commitment, and it is important that you understand what is involved. As such, you need to work out your budget and be honest about how much you can really afford to repay each month. Also if you remortgage you may have to pay an early repayment charge to your existing lender. If you are uncertain seek advice from a qualified adviser.
In simple terms, a mortgage is a large loan secured against your home, usually with a term between 5 and 40 years, but typically with a standard term of 25 years.
When taking out a mortgage, you can traditionally borrow at least three times your annual income, although your lender may be willing to give you and your partner more depending on your circumstances and income.
Although the term is typically 25 years, this can be altered to suit the amount you can afford to pay each month.
You will always need a deposit of some sort and the more you can put down the better. That said, some lenders will offer a mortgage to 90% of the property value, but bear in mind, these mortgage deals are rare in the current market place, this makes you more of a risk and a lender is unlikely to hand over a large advance at a generous rate without taking precautions.
Remember that a mortgage is a secured loan. Your home may be repossessed if you do not keep up repayments on your mortgage.
There are two main ways you can repay your home loan, either through a Repayment scheme or an Interest Only scheme.
Repayment: This means that your monthly payments go towards reducing the amount you owe as well as paying the interest charged. If you can afford this method of payment, this is usually the most suitable way to go.
Interest Only: This means you only pay the interest on your mortgage, so you are not actually reducing the loan itself.
Meanwhile, you also pay cash into an investment vehicle, such as an ISA or a pension. You then pay off the mortgage at the end of the term with the lump sum you have built up in the investment vehicle. This means repayment of the loan is dependent on investment performance, which, of course, is not guaranteed and can fall as well as rise. When house prices are high, an interest only mortgage may be the only affordable option for people who are just starting out.
Okay, so seeing all those deals out there may be a little daunting. But why not look at the other side of the coin? What you need to remember is that choice is good. More deals means more competition, which can only be better for you, the customer. There is a massive market out there, ranging from mortgage products with fixed repayments to others that move up or down in line with the Bank of England Base Rate (BEBR), which changes in line with Government targets on inflation. Think about the type of mortgage that you want and search for the best deal.
Here is a quick guide to the different types of mortgages:
Variable: A variable rate is set by the lender and may move up and down as interest rate changes are made by the Bank of England. Lenders will usually alter their Standard Variable Rate (SVR) in line with the BEBR, however the SVR is not usually the lowest rate on offer.
Fixed: If you want or need your monthly payments to stay at a fixed amount for a set period of time, then this is the way to go. If the BEBR seems to be on the increase, a fixed rate could save you money as it will not be affected. However, if rates drop, a fixed rate will stay the same and you will miss out on savings from the lower interest rate. These types of mortgage are usually fixed for a set period of anything between 2 and 10 years, and usually revert to the lender’s SVR on expiry.
Discount: These mortgages offer a set discount off the lender’s SVR. Although the initial rate may look good, remember this is variable and so could go up in line with market changes which increase the SVR. However your rate could also fall. After the initial discount period, you generally revert to the SVR
Capped: A capped mortgage offers a variable rate with a fixed element. While your interest may move up or down with the market rates, it will not go above a set rate, called the cap. This means you know what your maximum repayments will be for a set period, but allows you to benefit if rates fall.
Tracker: These products simply track the BEBR. A tracker will usually be set at a pre-determined percent above the BEBR and move up and down in accordance.
Please, bear in mind that any variable rates, discounts or trackers, will mean fluctuations in your monthly repayments. Also remember that some fixed and discount mortgages may offer really attractive, low rates at first, but these are unlikely to last. Make sure you know how long these last for and what the ‘revert to’ rate is. While your initial payments may be very low, these could increase substantially shortly after the original term ends. These mortgages are likely to have Early Repayment Charges (ERCs) that you will have to pay if you repay early or switch to another mortgage product or lender within a defined period, during the early years of a mortgage. Also look out for the Annual Percentage Rate (APR), which lenders are obliged to give and which shows the overall cost for comparison with other mortgage deals, including the interest rate plus any other charges.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Carrington Carr Home Finance Limited is an appointed representative of Legal & General Partnership Services Limited which is authorised and regulated by the Financial Services Authority for advising on and arranging mortgages and insurance.
Carrington Carr Home Finance Ltd, Reynard House, 37 Welford Road, Leicester, LE2 7AD. Registered in England No. 2105488. Registered Office: Reynard House, 37 Welford Road, Leicester, Leicestershire, LE2 7AD