Mortgages can be a bit of a minefield. Do you look for your own mortgage or go with a broker? What kind of repayment model suits you - fixed rate, tracker, interest-only, discounted or offset? We speak with Trinity Financial's Communications Director Aaron Strutt,for some expert advice and answers to those all important questions.
There is an ongoing price war in the mortgage market, and the lenders are consistency undercutting each other to make sure they offer the best deals.
The high street banks and building societies tend to offer the lowest rates, and they are starting to ease their acceptance criteria to make it is easier to qualify.
If you are in the process of applying for a mortgage, it is worth double checking you are getting the most competitively priced deal. This is particularly important if you are taking a longer-term fixed rate.
Are borrowers taking fixed or tracker rates?
Many of our clients are locking into fantastically low-priced two and five-year fixed rates, and the two-year Bank of England trackers without early repayment charges are still popular.
The ten-year fixes offer excellent value for money providing you are planning to stay in your property for the foreseeable future.
Is there much help for first-time buyers?
Mortgage lenders have been actively targeting first-time buyers, and they have a lot of options. If you can raise a ten percent deposit, it is possible to secure some surprisingly cheap rates.
There is more help for buyers with parents who want to help their children on to the property ladder and a range of lenders offering joint borrower sole proprietor mortgages.
How does mortgage affordability work?
The lenders used mortgage affordability calculators to work out how much you can borrow.
Each provider has its own calculator to generate the figures it uses to work out how much you can borrow.
Some lenders will base the maximum loan size on calculations based on the amount you earn and provide more generous multiples to wealthier borrowers.
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All banks and building societies will deduct your expenses and living costs to work out the amount they will lend. Credit cards, loans, school fees, and children all typically reduce the amount you can borrow.
Do the lenders offer larger mortgage loans?
More of the lenders have set up large loan teams to make it easier to get £750,000+ applications agreed.
Over the last few weeks, two lenders have doubled their maximum loan sizes from £1 million to £2 million, although others have been offering £1 million+ mortgages for years.
Trinity Financial has access to a range of lenders providing large mortgage loans with low rates and £999 arrangement fees.
Do I need to pay for a property valuation if I am buying a property?
A selection of lenders provide free property valuations when you are purchasing a property as an incentive to take the mortgage with them.
It is worth remembering that a free valuation will not include a detailed report describing the condition of the property. If you are buying a property, you may want to contact a surveyor for a full survey.
Is interest-only still available?
More of the lenders have re-entered the interest-only market and have very competitively priced rates.
There is often a minimum income requirement to qualify, and applicants will need a 25 percent deposit.
Lenders will want to understand how you intend to repay the mortgage at the end of the mortgage term so you will need a valid repayment vehicle.
Trinity Financial, a preferred partner of Winkworth, is one of the UK's leading independent mortgage broker firms. The team have strong relationships with all the providers and will scour the market to find you the very best deal. Trinity deal in all manner of products from first-time buyer to £multi-million portfolios and overseas mortgages. The guys also facilitate exclusive and often complex deals that can't be found on the high street.
If you're looking for a mortgage or require some advice please do not hesitate to get in touch with the team at Trinity.
020 7267 9399