Mortgage Section
Mortgage section with information on home buying.
Mortgage - Information Section.
Are you looking to become a homeowner and require a
mortgage? Do you want information on the process of property buying? Or,
do you want a mortgage but have problem credit?
Then you're after a Mortgage, and Saber is here to help.
Topics covered on this page are:
What is a
Mortgage > Types of Mortgages > Mortgage Interest Rates > Home Buying > Mortgage Tools > Mortgage Application Form
Mortgage Tools -
Tools for Mortgages.
Whatever type of mortgage you require, our mortgage tools will cut down the time you spend searching for mortgage lenders to suit your needs.
Mortgage Tools > click on the link to go to the tools page.
What is a Mortgage
A mortgage is a loan repaid over a long term and is used exclusively to
purchase property, the loan is usually secured upon the property it is
being used to buy. The term of the mortgage is the period over which the
loan is taken out and repaid.
Many mortgages come established with a 25 year term however other
lengths of term may be available or more suitable.
Types of Mortgage - Which one Suits You ?
There are 3 basic types of mortgage, these are repayment mortgages,
interest only mortgages and flexible mortgages.
A repayment mortgage pays off both the amount borrowed and any interest
accrued. With interest only mortgages, you only pay off the interest on
the loan. The original amount remains the same and investments are
planned to repay this. Flexible mortgages give the borrower the ability
to fluctuate payments, subject to the lenders conditions.
All the other types of mortgage available are essentially variations on
these 3, with the differences used to entice customers. The variations
between the different mortgages is basically how and at what rate, the
interest is charged.
Mortgage Interest Rates - Mortgage Repayment Size.
The rate of interest charged on a mortgage is tied into the base
interest rate. The base rate is set by the Bank of England and can alter
quite regularly. Any changes to the rate are announced by the Bank of
England's Monetary Policy Committee, which meets monthly. This is then
the standard base interest rate used for most financial products
including UK mortgages.
A mortgage lender will then add their interest rate on the top of this,
which is their charge for lending the mortgage loan to their customers.
How the interest rate fluctuations effect mortgage repayments depends on
what sort of mortgage individual customers have and if the lenders pass
any changes on.
Home Buying - Get on the Ladder.
Purchasing property can be a very daunting task, it is often drawn out
and confusing and on top of all that there can be charges and fees
involved that are easy to simply forget about.
Deciding to purchase property is probably the largest investment we make
in our lifetime, so it is only wise to take the time and whatever advise
is available to make sure of being certain before accepting and signing
any paperwork.
At Saber we think the process of buying property for a home can broken
down into 4 simplified bite size steps, we hope this can make mortgages
more easily understandable for our visitors.
Step1 - Get a deposit, get a mortgage.
Step2 - Finding a home.
Step3 - Offers, fees and contracts.
Step4 - Moving in.
Step1: Deposit and Mortgage
The Deposit
The majority of UK mortgage brokers offer mortgages up to 95% of the
value of the property. Therefore a deposit is needed of at least 5% of
the price. The more of a deposit saved also means less is required for a
mortgage so you should save as much as possible. Typically the deposit
is saved for in advance, but it may possible to arrange a loan to create
the finance required for a deposit if time is short, or customers will
have to arrange a 100% mortgage which costs more overall.
The Mortgage
The most important step towards purchasing property, once you decide
what type of mortgage you require, is to find out how much can be
borrowed for the mortgage.
UK mortgage amounts are worked out according to salary using income
multiples. The more you earn the more you may be lent for a mortgage. A
mortgage indemnity guarantee premium is charged if the mortgage is for
more than 75% of the property's value. Also the valuation report has a
bearing on the amount loaned for the mortgage. A joint mortgage
application could have an affect on the amount loaned for a mortgage,
indeed more should be offered in most cases. It is easier for you to
know how much you can borrow before you start to look for a home because
you will know what price ranges you can afford.
Step2: Locating
Property
Finding a Home
Now you know you have a mortgage and know how much you can borrow, it is
time to find a property that fits into your price range. If you want to
save money on searching for a property, there are web sites online with
lists of available buildings to buy. These web sites usually include
pictures and descriptions of the properties along with any prices and
contact information.
Estate Agents
Finding a home to buy can be a very time consuming process so most
people use an estate agent to perform the more tedious and time
consuming tasks involved. Estate agents should have lists of or contacts
for properties in the required area, all in the customers price range
and they should be of a suitable type. Estate agents can cut the time
involved in home buying down but they do charge a fee for the use of
their expertise and facilities.
Step3: Surveys, Fees and Making an Offer
Surveys
Once a desired property is located there are procedures to follow to
ensure the purchase is a sound investment for you and the asking price
reflects the properties value.
A property valuation must be carried out so the mortgage lender can
ascertain the size of loan it is prepared to make for the property. The
home buyers' survey and valuation report is required to check on the
condition of the property and its surrounding area. The fee involved
varies according to the size and value of the property. A building
report is a full structural survey and therefore the cost is likely to
vary with the buildings size.
Making an Offer
Once all the surveys and inspections of the building are complete and
the mortgage lender is satisfied that purchasing the property is a sound
investment, you are free to make an offer to the owner. The price
offered should reflect anything found in the surveys with reductions for
problems. You should be alert to the possibility however that if your
price is too low, the seller may opt to sell elsewhere. This process is
basically a continued negotiation until an agreement is reached between
both parties.
Legal Fees
As well as the charges for setting up and the arranging of your
mortgage, there are other fees you should be aware of such as for legal
procedures. The legal procedures are undertaken by a solicitor and a
conveyance and their roles are negotiate the price and to contact the
sellers legal team and process any necessary paperwork. This is to make
sure that the name on the property deeds are transferred. They pay both
the land registry fees, which changes the legal owner of the property,
and the stamp duty so the buyers rights as the new legal owner of the
property are recognised. The amounts charged will depend upon the agents
fees and the complexity of their work.
Exchange of Contracts
When the price has been agreed and both parties are fully satisfied,
then contracts are exchanged between the seller and purchaser's
solicitors. Both parties are now legally bound to the sale and purchase
of the property. Title deeds are sent to the buyers mortgage lender who
will hold them until the mortgage has been repaid in full. Now a
completion date can be set and arrangements made for the buyer to move
in and for the seller to move out.
Step4: Occupying and Utilities
Moving In
The process of moving in and inhabiting the property is one of the most
over looked stages of property purchasing.
Does the property require decorating and are there any alterations to be
made?
There are removal company fees to be paid for shifting furniture.
Utilities such as telephones, electricity and gas need to be informed of
change of ownership and activated. Cookers, washing machines and phones
need to be fitted.
Companies used or owed need to be informed of the change of address, and
any mail redirected. If consumers have children schools need to be found
and informed, and routes worked out to these and to any shops needed.
Application Forms for Home Finance.
We host finance application forms, that go to independent brokers who choose from multiple plans, increasing the chance
of you finding the right solution for you. The forms are simple to
complete and the lenders specialise in solutions for problem credit.
Require a Mortgage - Don't
Delay, Apply Right Now.
Mortgage Application Form > click on the link to apply.
We all know that a mortgage can be time consuming and
confusing to arrange. Also we know there are plenty of companies and web
sites that offer mortgages to customers. But those sites and companies
save their best rates for customers with the best credit ratings, and if
you do not fit into this category they do not want to know you or want
your business.
But if you have a problem credit rating what do you do?
Saber Finance can help you apply online for a mortgage, spend two
minutes completing the mortgage application form and you will get a very
competitive mortgage quote whatever your circumstance. We could even
help if you have a problem credit rating and have previously been turned
down when applying.
If you're after Mortgage Information, Saber Finance is here to help.