MORTGAGE ADVICE MORE INFORMATION


Mortgage Advice - More Information


Stirling Ackroyd – Mortgages and Protection Services to Suit You

As a MAB regulated business, you can trust that the advice provided by dot financial services is an honest appraisal of your finances and the mortgage market, and that our recommendation will be based on an accurate assessment of your personal affordability.

Your appointment

All appointments with dot financial services are designed to fit around your movements. During your first meeting with our advisers, you will discuss your personal situation and requirements, including your income, outgoings, savings and future plans. This analysis will help us confirm the following affordability criteria:

  • 1. The amount you can borrow
  • 2. The amount you have saved
  • 3. How much you will need to pay each month
  • 4. Which mortgage is right for your circumstances

Extra support for buyers

Once your home has been valued by Stirling Ackroyd, you can opt to have a cost of moving meeting with a Mortgage and Protection Adviser to help manage your finances. This appointment will help you work out how much you have for a deposit, based on typical moving costs and any other commitments. Our experts will also help you work out how much you can borrow and check your maximum purchase price fits within your monthly budget.

Find the mortgage for you

There are many different types of mortgages available and it can be hard to choose the right for you.

1. Repayment Mortgages

With a repayment mortgage, you repay part of the amount borrowed as well as the interest your lender charges you each month. Initially, most of your monthly repayment is made up of interest but as the mortgage matures, this changes, so you are paying off more capital every month.

2. Interest Only Mortgages

With an interest only mortgage, you are only paying off interest each month. Your repayments might be lower, however the amount you borrow will still be outstanding at the end of the mortgage term, so it’s important to have a repayment plan in place to avoid having to sell the property.

3. Buy-to-let mortgages

This type of mortgage works differently to a residential property mortgage - i.e. a mortgage for a property you intend to live in. You will need a larger deposit; potentially face higher application fees and you’ll most likely pay a higher rate of interest. Buy-to-let mortgage lenders usually expect that landlords monthly mortgage payments are covered by the rent they receive. Buy-to-Let mortgages are riskier however and problems with rent collection, or periods where you don't have tenants, mean that you will have to cover the shortfall.

4. Standard Variable Rate (SVR) mortgages

A Standard Variable Rate is a type of mortgage interest rate that you are most likely to go onto after finishing the introductory fixed, tracker or discounted deal you initially took. Certain lenders might also let you take out a mortgage on their Standard Variable Rate too. With this type of mortgage rate, your payments should rise and fall in line with the Bank of England bank rate changes (but not necessarily at the same time or by the same amount).

5. Fixed Rate Mortgages

A fixed rate mortgage does what it says on the tin. It fixes your monthly mortgage repayments for the duration of deal period agreed (often two, three or five years). This can be a less risky option if you expect interest rates to go up. Be aware though that if the opposite happens and interest rates go down, you will still pay the same amount every month until the fixed rate period expires.

6. Tracker Mortgages

Tracker mortgages are a type of variable rate mortgage. They follow (or track) movements of another rate, most commonly the Bank of England Base Rate. Tracker rates do not exactly match the rates they track, but rather are at a margin above that rate. So, if the interest you pay on your monthly mortgage repayment is set as the base rate plus 1% (and the base rate at the time is 0.75%), the amount of interest you will pay every month will be 1.75% until the base rate changes.

7. Capped Mortgages

Capped rate mortgages are a type of variable rate mortgage with an interest rate ceiling known as a cap. This type of mortgage offers you the option of knowing the maximum monthly repayments you would have to make during the set period of typically two to three years.

8. Discount variable rate mortgages

Discounted variable rate mortgages offer you a discount on a certain interest rate. This is most commonly the lenders Standard Variable Rate (SVR). The discount can be for an introductory term (such as two, three or five years) or it could be for the entire term of the mortgage (called a lifetime discounted rate).

9. Offset mortgages

An offset mortgage is where you have savings and a mortgage with the same lender and your cash savings are used to reduce or 'offset' the amount of mortgage interest you're charged every month. It's important to remember that you are also unlikely to earn interest on your savings which are offset.

10. Flexible mortgages

This type of mortgage enables you to vary the amount you pay each month and take payment holidays in some circumstances. It may also help you to reduce your mortgage through lump sum payments (without incurring early repayment charges).

Your home may be repossessed if you do not keep up repayments on your mortgage.

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.

There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1.5%, but a typical fee is £499.

Townends (Residential Sales) Limited and Townends (Lettings and Management) Limited are Introducer Appointed Representatives of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited, which are authorised and regulated by the Financial Conduct Authority. Introductions are made to dot financial services, which is a trading name of Townends (Financial Services) Limited, which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited. Townends (Financial Services) Limited. Registered Office: Unit 2 Wintersells Rd, Byfleet, Surrey, KT14 7LF Registered in England Number: 03192085

MAB: 9319