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How can I
work out what I can afford?
You can estimate your monthly payments by using our Mortgage
calculators for both Interest only and Repayment mortgages
by clicking
here.
What is an Interest Only mortgage?
Payments are used to pay interest only and no contribution
is made towards reducing the actual mortgage amount. Payments
are affected by interest rate changes and will decrease
or increase in line with any changes.
As payments are intended to pay interest only, the balance
of your mortgage is not reduced and the capital sum becomes
due at the end of the agreed period of the loan. It is important
that suitable arrangements are in place to repay the loan
amount outstanding (together with any accrued or unpaid
interest) by the end of the mortgage term. You usually need
to contribute to an acceptable Investment or Pension Plan
that will repay the mortgage at the end of this agreed period.
There are several types of Investment vehicles which can
be used to repay an interest only mortgage. Each one has
its benefits and drawbacks and much care is needed when
selecting the product best suited to your individual circumstances.
We are able to provide independent professional advice on
this subject.
What is a Repayment (Capital & Interest)
mortgage?
A repayment mortgage repays interest and capital simultaneously
throughout the agreed term. In the earlier years you pay
mostly interest and very little capital, then as the loan
matures you progressively start to repay more capital so
the outstanding mortgage balance reduces over the term of
the mortgage.
What type of mortgage should I go for then,
Repayment or Interest Only?
Contact our dedicated team of qualified advisers and
they will ensure that you have all the information you
need to make an informed choice.
Are these payments ,from the mortgage
calculator, exact ?
No, remember these are there only for a guide and we would
recommend that as soon as you know your exact details, you
contact us so we can help you decide which current mortgage
and lender is best for you so we can calculate the exact monthly
payments required.
What is the difference between Freehold and Leasehold?
Freehold means to own the property and the land on which
it stands and any adjacent land that is included in
the purchase details. Leasehold means you lease the
land (not property)
Is the above same for Scotland?
No, the law is different in Scotland so you should seek
advice from your solicitor.
When does the property become legally ours?
Your purchase becomes legally binding when contracts
are exchanged between you and the vendor, normally with
a deposit having been paid and suitable building insurance
put in place. (of course it's not completely yours until
the mortgage is all fully paid up !!)
What are the different types of valuation
fees for?
There are three types of valuation reports available, generally
all payable by you for the use of the lender, as it allows
them to assess the suitability of the property as security
for the loan.
1. Mortgage Valuation: The simplest form of survey - intended
to check whether or not the property offers suitable security for the loan.
Solely for the benefit of the lender although you will normally
receive a copy of the report.
2. Home Buyers Report: A concise summary on the state of
repair and condition of the property, including a valuation. Although not generally
suitable for large or period properties, its main aim is
to advise the purchaser on whether or not the house is worth
the purchase price and to provide a reasonable level of
guidance in relation to the condition of the property.
3. Full Structural Survey: A detailed inspection of the
property which is especially useful if you are purchasing
a large or older property, or even where extensive alternations
have been made or are proposed. This report will give full
details and information on the present state of the property
including any essential repairs required.
What is an arrangement fee for?
Most lenders now charge a fee for arranging particular
mortgage schemes. The size of the fee varies and may be
payable either on application or completion. Some lenders
require only part of the arrangement fee at outset - known
as the booking fee - to enable them to reserve mortgage
funds. Most fees are non-refundable should you decide to
withdraw from the purchase.
What is Higher Lending Charge and will I need it?
If your mortgage represents a high percentage of the valuation
or price of your property (usually 75% or more), you may be
required to pay an additional fee. Some of this additional
fee may be used by the lender, at its discretion, to obtain
mortgage indemnity insurance to act as extra security for
its sole benefit, should your property be subsequently taken
into possession and sold for less than the amount you owe.
Will we need to provide any references
for our mortgage?
Yes, lenders usually apply for confirmation of income, previous
lenders or landlord's references as well as a credit check.
Although this will depend on the type of mortgage being applied
for.
Will there be any legal costs?
Yes, and your solicitor should inform you of these. Generally
there are the conveyance fees, telegraphic transfer fees,
stamp duty and search fees. We strongly recommend that you
obtain an estimate of these costs in advance.
Will Churchill Robins charge me a finder's fee for my mortgage?
No. Churchill Robins does
not charge mortgage-finders fees. We are completely
independent advisers to the mortgage market so you can
count on truly impartial and independent mortgage advice.
However if you use our broker's services we will charge
a fee, but this is only payable upon completion of your
purchase or remortgage.
I am a first time buyer and I suspect I
may need a 100% mortgage, is that possible?
Yes, we can usually source home loans up to 100% for
first time buyers, but the rates for these loans are
normally a fraction higher than normal market rates.
If I am looking for a large home loan,
say in excess of £500,000 can you help?
Larger than average mortgages are quite readily available
and at competitive rates, however those who are looking
for larger mortgages will be required to have large
earnings!
Most larger mortgages will need the flexibility to allow capital
repayments to be repaid off early whenever possible, so we
will ensure that the lenders who will be competing for your
business offer both full flexibility at the most competitive
rate.
Some additional Jargon explained
APR - The Annual Percentage Rate is intended to help
you compare the true cost of loans offered by the different
lenders, as it takes into account not only the interest
charges but also all fees and administration costs too.
Advance - The money that is lent by the lender
CAT - Standards Which stands for reasonable Charges,
easy Access and fair Terms. It is a Government benchmark
standard for mortgages and is intended to be straightforward,
fair and easy to understand.
Completion - When the property becomes legally yours,
and you finally get the keys, ( although it's never
really yours until the loan is fully paid up !!)
Equity - The difference between what your property is
worth and how much you owe on all loans secured against
it.
Exchange - The time when the identical contracts between
the buyer and seller are exchanged and the deal becomes
legally binding.
Purchaser - The person or persons buying the property.
Term - The number of years the mortgage loan is due
to be repaid.
Vendor - The person selling the property.
Your home may be repossessed if you do not keep up repayments on your mortgage
For Mortgages, we can be paid a fee, usually £500 or by commission
The FSA do not regulate loans and some forms of mortgage
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