When you meet with one of our advisers they will determine the following:
The length of time you fix your mortgage for depends on your individual circumstances. Most lenders offer 2 and 5 year fixed rates and some over 10 year deals as well.
Our advisors can review your circumstances and discuss the best option for you. Would you prefer certainty of your mortgage payment over a longer term, such as 5 years, or do you require the lowest rate for a lower monthly mortgage payment, this is generally over 2 years.
However long you decide to fix your mortgage interest for, rest assured, we will contact you up to 6 months before your deal ends, so that you don’t end up on the lenders standard variable rate.
In short, you would be able to pay of your mortgage quickly, by increasing your monthly payments or by paying in a lump sum to reduce the term of your mortgage.
However, this depends on various factors and it is important that you check what overpayment facility your lender allows. Most lenders will allow you to pay off up to 10% of your outstanding mortgage balance, each year penalty free.
If you are on the lender’s standard variable rate, then you are usually free to pay as much as you like on top of your monthly mortgage payment. You should always refer back to the original mortgage offer.
Please do contact one of our advisors, who can review your mortgage and current financial circumstances, to assist you in making a decision, suitable for you.
Your existing lender may agree to allow you to port your existing mortgage product to a new property.
When you sell your existing home and are looking at buying a new one, you will still need to apply for a new mortgage. This is because the loan itself does not transfer over to a new property, only the interest rate and the terms and conditions of your current product transfers over to the new property.
You will still need to go through the lenders affordability assessments, valuations, and legal processes for the new purchase, but by porting the existing product, you would not have to pay any penalties for redeeming the mortgage on your existing property early.
As part of the moving process, your existing mortgage is paid off in full and a new mortgage is taken out against the new property. Porting will allow you to remain with the same lender, keep your current product and apply for any additional ‘top up’ loan needed to complete the purchase of your new home.
A ‘top up’ loan is usually an additional borrowing amount above and beyond the amount to be ported and will sit as a separate mortgage part on a different product from the lenders current offering. This scenario is more common, when the new property is more expensive than the current property and requires a mortgage higher than the amount to be ported. Availability of any additional top up borrowing will depend on your lenders affordability criteria and your personal income/circumstances at the time.
Lenders use a range of different credit agencies when they assess at your credit if further detail. You can download your credit file using Checkmyfile (link below) which offers a multi credit agency report in one..
You can contact the Unclaimed Assets Register for any unclaimed policies. You will be required to provide personal details and proof that you are the person in line for receiving the payout.
If you currently have a fixed-rate or Tracker mortgage (not all), then Early Repayment (Redemption) Charges may be payable for paying off this mortgage early. This usually ranges between 1-5% of the total loan amount and will depend on the length of the fixed period, i.e. the longer the fixed period remaining, the higher the early repayment charges payable. Exact details of this can be found on your mortgage offer and/or annual mortgage statement.
When the fixed period ends, there are usually no Early Redemption Charges payable. A Mortgage Exit Fee (or Redemption Fee) may be payable to close the mortgage account. Your lender may also charge a nominal fee to cover the administration costs associated with closing the mortgage account down.
If you are on the lender’s standard variable rate mortgage, then no Early Repayment Charges are payable.
Yes- dependent on your individual circumstances and terms of your new contract, we have lenders that will consider a mortgage application for those who have started a new job.
If you are within your fixed rate period, then you will not see an increase in your mortgage payments. If, however you have a tracker mortgage or are on the lender’s standard variable rate then you should expect to see an increase in your monthly repayments. Equally, if the Base Rate decreases, then you would expect a reduction in your monthly mortgage payment.
Yes you can get a buy to let mortgage on a multi-unit property, however not all lenders will consider lending on this type of security as it is not a property type that can be easily sold to a single family. An example of a multi-unit property could be a single house which has been converted or split into two of more units, but the overall property is on a single title.
The lenders that usually accept this property type, will require for the individual units to be self-contained with separate access, own utilities, and they must not have individual leases on the units, if you are looking to lending against the whole building.
Some lenders will also require a minimum amount of landlord experience, before they will consider lending on this property type.
We work with a large number of lenders that offer mortgages where there have been issues with credit in the past.
The rules around Buy to Let mortgages were changed in 2017 by the Prudential Regulation Authority (PRA). They defined a portfolio landlord as an individual who has more than four mortgaged properties.
Whether you own investment properties, solely, jointly or in a Limited Company, the team at Key Life Financial Services are well versed and experienced in this area and, can provide you bespoke and specialist advice tailored to your circumstances.
