MORTGAGES
Taking out a mortgage is one of the biggest financial decisions you will make, so it’s important that you get the right advice. Speak to us at A&A mortgages and we’ll make sure you get the right mortgage.
What Mortgage Do I Need?
1. Fixed Rate
A fixed rate mortgage means the interest rate stays the same during a set period of time, usually between 2 and 5 years – although some lenders offer fixed rates of 10 years or more. This stability can be great if you like the certainty and peace of mind knowing that your mortgage payments will stay the same.
2. Tracker
A tracker mortgage charges an interest rate that is usually a few percentage points higher than the Bank of England’s base rate. The mortgage will then “track” the base rate, which means that your monthly payments could rise and fall in line with any changes.
3. Discounted Variable Rate
A discounted variable rate mortgage is similar to a tracker mortgage, but rather than being linked to the Bank of England’s base rate, it is set at a fixed percentage below the lender’s standard variable rate (the SVR). The mortgage will then follow the lender’s SVR, and your payments could rise and fall, depending on how their SVR changes.
4. Standard Variable Rate
A standard variable rate mortgage follows the lender’s SVR, without any discount. You’ll automatically go onto this type of mortgage at the end of any introductory fixed, tracker or discounted deal.
5. Interest Only
An interest only mortgage is one where your monthly payments will only go towards paying the interest charged on the loan each month. Because of this, interest only mortgages can be cheaper – but the payments don’t go towards paying off the loan. At the end of the term, you’ll have to pay back the full amount you have borrowed in a lump sum. Most people do this through the sale of the property or by using an investment.
6. Offset
An offset mortgage is linked to one of your savings accounts – the amount you have in the account is offset against the amount you owe on your mortgage each month, lowering the total interest you’re charged on your monthly repayments. You won’t earn interest on any account linked to your offset mortgage.
KEY THINGS CONSIDERED FOR THE BEST MORTGAGE DEAL
Rates
A fixed mortgage rate can offer peace of mind with a guarantee of what your monthly repayments will be over a set period of time which means financial planning can be easier although a tracker could be cheaper overall. It’s important to consider what suits your financial circumstances and attitude to risk.
Fees
Always consider what fees are attached to a mortgage deal, they can add considerably to the overall cost. Don’t forget to factor in the length of the initial term too as there is likely to be an early repayment charge if you want to leave early before that term is ended.
Credit Rating
Credit rating can have a BIG impact on what mortgage deals, and rates, you will be able to access. It’d be savvy to check your credit report before applying for a new mortgage so you can take steps to improve your rating where possible. Simple things such as getting on the electoral roll can help.
Compare Deals
By speaking with A&A Mortgages we can compare the whole of market to find the deal that suits your needs – often getting access to unique and discounted products you wouldn’t get directly with lenders or through other brokers! Whether you’re looking to buy or remortgage, we compare deals across the market to source the right one for you.
MORTGAGE FAQS
What is a mortgage?
A mortgage is a loan that is mainly used to buy a home. To get a mortgage, you will need to be earning enough to afford the repayments, and you’ll also need a deposit. A deposit is a percentage of the property’s value, which you can put down in cash.
How much deposit do you need for a mortgage?
In most cases, you’ll need a 10% deposit to get a mortgage – although some lenders offer mortgages with a 5% deposit. Generally, the more you can put down as a deposit, the better, as it means you’ll have to borrow less and interest rates become cheaper.
A mortgage is secured against your property – so you should remember that if you fail to keep up with your monthly repayments, the property could be repossessed, putting your home at risk.
In most cases a 10% deposit of the property value is required for a residential mortgage, however it is possible to get on the property ladder with a 5% deposit. There are plenty of benefits to saving a bigger deposit, they are:
- Cheaper monthly payments – for capital repayment mortgages the less you borrow, the less you back
- Better mortgage rates – lenders give better mortgage rates for those with higher deposits
- More chance of getting accepted – lenders perform affordability checks, the higher your deposit the less your monthly payment will be
- Lower risk – if you’re property equity falls, there’s less chance of you owing the lender in the long term
Can I get a mortgage with bad credit?
Yes, you can still get a mortgage with bad credit. You may not get access to most competitive rates, but it’s definitely still possible. Lenders will look at your payment history, so any missed payments or CCJs in the past will work against you.
Want to speak with us? There are plenty of ways to get in touch…
Our friendly team look forward to hearing from you.
- Tel: 0203 1299 628 | 07973 758283
- Email: arash@aandamortgages.co.uk
A&A Mortgages is an Appointed Representative of Dragon Brokers Limited t/as The Dragon Network which is authorised and regulated by the Financial Conduct Authority under registration number 599430. Registered office: 2 Acorn Grove, Kingswood, Tadworth, Surrey, KT20 6QT Registered in England.
A&A Mortgages is a credit broker and you can confirm our registration on the FCA’s website www.fca.org.uk
The actual APRC you are eligible for depends on individual circumstances.
If you are thinking about consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON A MORTGAGE.
The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
The Financial Ombudsman Service (FOS) is an agency for arbitrating of unresolved complaints between regulated firms and their clients. Further details of the FOS can be found on its website: www.financial-ombudsman.org.uk
Terms of Business
1. Introduction
This document outlines the services we provide. It is an important document, so please make sure you read it carefully. If you have any questions, please feel free to contact us. Last updated 02/09/2024
You should read this document alongside our Privacy Policy.
2. Who We Are
A&A Mortgages is an Appointed Representative of Dragon Brokers Limited t/as The Dragon Network which is authorised and regulated by the Financial Conduct Authority under registration number 599430. Registered office: 2 Acorn Grove, Kingswood, Tadworth, Surrey, KT20 6QT. Registered in United Kingdom
3. Our Services
We are a mortgage intermediary service and have access to a comprehensive range of mortgage products. Our service is only available to UK residents with properties registered in the UK. As part of our service we will take time to understand your requirements and explain all parts of the mortgage journey to you.
If you wish to see a full list of lenders we use, please contact your adviser.
4. Our Fees
We may charge an application and/or broker fee for the service that we provide but this will depend on individual circumstances and the product recommended.
A typical administration fee of £0 may be charged for a first charge mortgage.
A typical broker fee of £495 – £995 may be charged for a first charge mortgage.
We will tell you how much the total fee will be in good time before you apply for a mortgage, but you may ask for this information earlier.
Both fees are non-refundable. The administration fee is payable upon application and the broker fee upon offer. If you withdraw your mortgage application after submission to the lender, you may still be charged the broker fee. The broker fee can be paid from your own funds or added to the borrowing amount (subject to lender approval). If added to the borrowing amount, it will accrue interest at the same rate as your mortgage over the term.
The lender recommended may pay us a commission for the service that we provide. This will be disclosed to you before completion of your mortgage.
You will receive a key facts illustration when considering a particular mortgage which will detail any fees relating to it.
5. Monitoring Service
We will keep in regular contact and email you periodically to keep you updated on your mortgage deal. You will automatically benefit from this service on completion of your mortgage application. If you wish to stop this service, contact us. We may retain certain data required based on our regulatory requirements.
6. Intermediary Service
We will provide mortgage advice based on your personal information and circumstances; we do not provide execution-only service. Once we have established which mortgage is most suitable for you, we will make a recommendation based on your preferences and circumstances. It is your responsibility to ensure the information you provide is factual and accurate. We may need to see evidence to support your application with the lender.
We will provide you with a mortgage illustration based on our research. Please take time to read and understand this document.
It is important to note that if we recommend a Buy-to-Let mortgage for you, not all Buy-to-Let mortgages are regulated by the FCA.
7. Mortgage Application
There are various stages to the mortgage application process when using our intermediary service. We will keep in regular contact with you throughout the process and if we are unable to assist, we will contact you at the earliest possible opportunity to inform you.
We may refuse to proceed with an application for the following reasons:
– The information provided is not factual, accurate or misleading
– We believe that the available products are not suitable to your circumstances
– We have reason to believe that you have made a high volume of applications and/or repeatedly apply then withdraw.
– You fail our know your customer (KYC) and anti-money laundering (AML) due diligence process
If you are applying for a mortgage in respect to a property you wish to purchase, it is your responsibility to provide all necessary information including the solicitor, estate agent and/or conveyancer.
We may also require proof of deposit to further satisfy our requirements.
8. Ancillary Products
We may offer you alternative services including life, critical illness, income protection, accident/sickness and unemployment insurance. We may also offer building and content insurance to you if you require.
9. Collecting Your Data
To advise you on the best mortgage for you circumstances, we are required to complete a fact find. We may also require documentation to support your application such as: passport, driving licence, bank statements, payslips, tax overview or accounts.
10. Data Protection
We will hold the personal information provided by you securely and in confidence. Please ensure you read our privacy policy so that you are aware of how we process your data. This will offer more detail on how we collect, use and retain your data.
11. Financial Crime
We are committed to ensuring there is integrity within the UK mortgage market. All transactions relating to our services adhere to the Money Laundering Regulations and Proceed of Crime Act.
We are required by the FCA to have adequate systems and controls in place to prevent the furtherance of Financial Crime.
12. Our Complaints Process
Our priority is to offer the highest level of service to our customer. Your feedback is important to us and helps us understand where we can improve. If there is a problem, please let us know and we will do everything we can to resolve it straight away.
If your complaint refers to your personal data and how this is processed, you can find more information about your rights in our Privacy Policy.
If your complaint cannot be resolved straightaway, we will acknowledge receipt in writing, confirming our understanding of your complaint, the complaint handler and giving you the opportunity to provide further information or documents.
If you are dissatisfied with our response, you can contact the Financial Ombudsman Service.
They are a free and independent service. You must do so within six months of the date of The Dragon Network’s final response letter.
Website:
www.financial-ombudsman.org.uk
Post:
Financial Ombudsman Service, Exchange Tower, London, E14 9SR
13. Intellectual Property
We are the owner and reserve all rights to all intellectual property rights attributable to our site and its contents. This includes copyright works and trademarks.
The content on our website is provided for information only.
