Our services: buying a home

Buying a home could be the biggest financial commitment you will ever undertake. For many of us, buying a home is the first time we need financial advice and our mortgage is likely to remain our biggest financial commitment for many years to come.

When making such an important decision, it is sensible to have a clear understanding of all the lending options, whether that results in cheaper monthly payments, a shorter mortgage term or perhaps the ability to afford your next property.

Finding the right mortgage means two things: understanding the market and understanding your own needs. A specialist mortgage broker or financial adviser will be able to take you through the different options and make a recommendation based on your circumstances.

The best rates are generally available to buyers with the biggest deposits. Loans with an 80% loan-to-value (LTV) rate, where the borrower puts up a 20% deposit will be more expensive than loans with a 60% LTV rate, where a 40% deposit is required.

Many mortgage deals ‘track’ the Bank of England base rate, at a set percentage above the rate for either the lifetime of the mortgage, or for a predetermined part of it. These deals may prove less expensive over the lifetime of a mortgage, but can leave borrowers exposed to sudden rises in interest rates. If finances are tight, a borrower may opt for a ‘fixed term’ product, which holds the rate at a certain level for a set number of years (or occasionally the lifetime of the mortgage) before reverting to the bank’s standard rate.

The fees or charges attached to a mortgage can also vary. Most will charge an arrangement fee when the mortgage is set up, while there are often penalties for exiting a mortgage during any special introductory rate.

For those interested in buy-to-let, there are appropriate loans available from both the High Street banks and specialist lenders.

Once you have bought your home, it is just as important to protect yourself and your family from any financial risk in the future. It is, therefore, also important to decide the right levels of insurance, and the types of cover most appropriate for you.

Please remember that your home may be repossessed if you do not keep up repayments on your mortgage.

To find out more, please contact us.