Mortgages

Need help finding the right mortgage?

With so many different mortgage deals on the market, selecting the right one to fit your circumstances can not only be confusing, it can be extremely costly if you get it wrong. Here at 99Home Ltd, our in-house mortgage advisor can walk you through the maze and help you find the perfect mortgage. To arrange your free, no obligation consultation, conducted in the strictest of confidence, please call 0203 5000 999 or email info@99home.co.uk today.

Down payment/deposit

You might have heard someone say: "I put down a hundred thousand in cash (down payment) and took out a mortgage for the rest". A deposit/down payment is the amount of money you can pay towards the house purchase before taking out a mortgage. This can vary from as low as 5% for Help-to-Buy purchasers but is typically between 20% to 40%

Fixed rate mortgage

A mortgage that has a fixed interest rate for the entire term or the limited term agreed for the loan. The unique factor of a fixed-rate mortgage is that the interest rate over every time period of the mortgage is known at the time the mortgage is originated. The benefit of a fixed-rate mortgage is that the homeowner will not have to contend with varying loan payment amounts that fluctuate with interest rate movements.

Remortgage

A remortgage (also known as refinancing) is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security (equity). In simple terms a home remortgage, or refinance, fulfils the terms your existing mortgage contract and creates a new contract with more favourable terms for you.

Buy-to-let mortgage

Buy-to-let is specific type of mortgage, solely taken to purchase the property which is going on letting. Lenders calculate how much they are willing to lend using a different formula than for an owner-occupied property. They tend to look at the expected monthly rental income to determine the maximum loan available. First-time landlords might also be required to have a separate annual income of at least £25,000.For an owner-occupied property, the calculation is typically a multiple of the owner's annual income. The interest rates and fees that are offered on BTL mortgages are, on average, slightly higher than those for an owner-occupied mortgage. This is due to the perception amongst banks and other lending institutions that BTL mortgages represent a greater risk than residential owner-occupier mortgages.

Flexible mortgage

On a flexible mortgage you are allowed to make extra payments when you have extra money available. Extra payments can be lump sum or extra amounts per month. Most flexible mortgages also offer the option of taking a 'payment holiday' by building up a reserve of excess payments. Both these features can help in paying the mortgage off early, or coping with unexpected expenses. A flexible mortgage is usually offered on a daily interest basis, and because you are being offered this flexibility as an extra service you will pay slightly higher rates of interest compared to standard variable rates.

Homebuyers survey and valuation

A property survey that includes a valuation and should reveal any major faults in the property. It is not as detailed as a Structural or Building Survey but will give your mortgage lender a valuation of the property you intend to purchase and outline any major structural repairs that may be required.

Interest charges

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include, cash, consumer goods, large assets, such as a vehicle or building. Interest is essentially a rental, or leasing charge to the borrower, for the asset's use. In the case of a large asset, like a vehicle or building, the interest rate is sometimes known as the "lease rate".

Interest-only mortgage

A mortgage, where the borrower is only required to pay off the interest which arises from the principal amount that is borrowed. Because only the interest is being paid off, the interest payments remain fairly constant throughout the term of the mortgage. However, interest-only mortgages do not last indefinitely, meaning that the borrower will need to pay off the principal of the loan eventually. Interest-only mortgages can be useful for first-time home buyers because it allows young people to defer large payments until their incomes grow. At the end of the interest-only mortgage term, the borrower has a couple of options. He or she can either renew the interest-only mortgage or repay it through standard means, such as entering into a normal mortgage and liquidating investments.

Joint income

Meaning of joint income is to combined gross income of all earning members of a house. Individuals do not have to be related in anyways to be considered members of the same household. Joint income application can be made when all these members of a household who jointly ready to apply for credit. Household income is an important risk measure used by lenders for underwriting loans.

Redemption

When a mortgage is fully repaid by borrower.

Repayment mortgage

A repayment mortgage is a term usually used to describe a mortgage in which the monthly repayments consist of repaying the capital amount borrowed as well as the accrued interest, so that the amount borrowed decreases throughout the term and by the end of the loan term has been fully repaid.

Repossession

Repossession is the process by which lenders can reclaim property from debtors (those that owe money) who have not kept up with their payments or default the payments.

Retention

This relates to monies withheld by lenders until certain mortgage conditions are met.

Disclaimer : The information shown is provided in good faith but 99Home.co.uk (99Home Ltd) accepts no liability whatsoever for any inaccuracies or omissions in any of the information shown on this webpage, email or any print document. You should take professional advice before committing yourself to any transaction. You should perform your own research and seek professional advice before making any decision to purchase or invest in property or land. 99Home.co.uk (99Home Ltd) does not give investment, mortgage or financial advice. The information in this message is for general interest only. Any opinions expressed are those of 99Home.co.uk (99Home Ltd) but must not be relied upon.
A Tenants, Buyers, Landlord & Vendor may wish to instruct us about a related service { Mortgage, Insurance, Conveyancer etc}. 99 Home does offer such services, including the followings: The sale and letting of residential and commercial property, the provision of financial services, conveyancing, surveying, insurance, property management, relocation, planning permission, solicitor related services, etc through our various business associates & partners { based on referral terms between them and us}, where 99 Home or its employees may receive a fees or commission or referral fees. Please note that these services are available to you and open to all our clients. Should you have any questions or concerns feel free to contact our team.