If you are looking to buy a property or refinance your current home, you will need the help of a mortgage lender. A mortgage lender will help you find the right mortgage product to meet your financial needs and assist with the application process. In this guide, we will outline the different types of mortgage products available, the approximate cost, and how long the process may take.
Types of Mortgages
Fixed Rate Mortgages: A fixed rate mortgage offers a set interest rate for a specified period, usually between 2-5 years. This type of mortgage offers stability as your repayments will remain the same for the duration of the term.
Variable Rate Mortgages: A variable rate mortgage is linked to the Bank of England base rate and can change over time. This type of mortgage may offer a lower initial rate but can increase in the future.
Tracker Mortgages: A tracker mortgage tracks the Bank of England base rate and offers a rate that is a set percentage above this. This type of mortgage may offer a lower initial rate but can increase in the future.
Buy-to-Let Mortgages: A buy-to-let mortgage is designed for individuals who want to purchase a property to rent out. This type of mortgage typically has a higher interest rate as the lender considers the rental income as part of the repayment.
The cost of a mortgage will depend on several factors, including the type of mortgage, the amount borrowed, and the lender's fees. On average, you can expect to pay between 1-2% of the total mortgage value in fees. This includes arrangement fees, valuation fees, and legal fees.
The process of obtaining a mortgage can take anywhere from 2-12 weeks, depending on the lender's processing time and the complexity of your application. You can expect to receive a decision within 2-4 weeks of submitting your application.
Jobs Requiring Input from Other Trades
If you are buying a new property, you may need the services of other trades, such as a surveyor or a solicitor. A surveyor will carry out a building survey to assess the condition of the property, and a solicitor will carry out the legal work involved in the property purchase.
Finding a Good Mortgage Lender
When looking for a mortgage lender, it's important to consider several factors, including:
Reputation: Look for lenders with a strong reputation for providing good customer service and competitive rates.
Fees: Compare the fees charged by different lenders to find the best deal.
Interest rates: Compare the interest rates offered by different lenders to find the best deal.
Customer reviews: Read reviews and testimonials from previous customers to get an idea of their experiences with the lender.
One of the best ways to find a good mortgage lender is through word-of-mouth recommendations. Ask family, friends, and colleagues for recommendations of lenders they have used in the past.
PropertyHeads Tradesman Blacklist
To avoid bad mortgage lenders, it's important to check PropertyHeads tradesman blacklist. This blacklist includes lenders who have been reported for poor service or unethical practices. By checking this blacklist, you can ensure that you are using a reputable lender.
In conclusion, obtaining a mortgage can be a complex process, but by working with a reputable mortgage lender, you can make the process a lot easier. By considering the different types of mortgages available, the approximate cost, and the time it may take, you can ensure that you find the right mortgage product to meet your financial needs.
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