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INTRODUCTION
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MORTGAGES
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LIFE INSURANCE
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CRITICALL ILLNESS
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INCOME PROTECTION
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BUILDINGS & CONTENTS
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How much can I borrow?
The amount you can borrow will depend on several factors. The lender will decide how much they can lend you based on factors such as: your income, existing credit commitments and your deposit. If you are looking to buy jointly this can increase the amount you are able to borrow. Each lender will have different criteria for the maximum they will lend but as a guide you could borrow 4 x the highest income + 1 x the second income or 3.5 x the joint income.

What types of Mortgage are there?
You will find two main types of mortgage, these are:
1. Repayment (Capital and Interest mortgage)
2. Interest only (ISA, Pension, Endowment mortgage)

What is a Repayment Mortgage?
With a repayment mortgage your monthly payments consist of both the capital amount borrowed together with accrued interest. Your lender will keep you advised about how much you have repaid.

What is an Interest Only Mortgage?
With this type of mortgage you only pay the interest accrued on the mortgage each month. It is usual for the borrower to take out a savings or investment plan at the same time as applying for the mortgage; this could be an ISA, Pension or Endowment plan. The main fact about this method is that the capital balance of the mortgage stays the same during the mortgage term; only the interest is paid to the Lender each month.

What is a Fixed Rate Mortgage?
With a Fixed Rate Mortgage the amount you repay to the Lender each month stays the same for an agreed period. When applying for the mortgage you may be offered a Fixed Rate from 1-25 years.

What is a Capped Rate Mortgage?
A Capped Rate Mortgage is similar to a fixed rate except when the variable rate drops below the capped rate, should this happen the borrower would make payments based on the lower variable rate.

What is a Discounted Mortgage?
This option is linked to the lenders Variable Rate. The Lender may offer you a discount to their Variable Rate for a specified period of time. With this option there is no certainty what your future payments could be.

What are Redemption Penalties?
Some Lenders expect you to stay with them for a minimum period of time. If your Lender has offered you a special scheme (Fixed Rate, Discounted, Cashback mortgage) they may charge you an Early Redemption Charge if you decide to repay the loan prior to the scheme ending. It is possible to find Lenders and schemes with No Early Redemption Charges.

How much Deposit do I need to get a Mortgage?
Having a deposit of at least 10% toward the purchase of your home is preferable. However in rare circumstances it maybe possible to borrow 95% of the purchase price.

I have a deposit how does this help?
Having a deposit helps in several ways. One of the main advantages is an increased choice of the lenders wishing to assist and an increased number of mortgage schemes to choose from.

What fees should I expect to set up a Mortgage?
Lenders will want a valuation to be carried out on the property you wish to purchase, the cost of this report is usually charged to you. In addition you may be asked to pay either a Booking or Arrangement fee, these fees are specific to a scheme being offered by the lender. Finally, you may be required to pay a Higher Lending Charge, this is an Indemnity Insurance taken out by the lender. When buying a home you would usually use a Solicitor to carry out the legal work, the Solicitor will work on your behalf and for the Lender; you are expected to pay for this work

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Network Mortgages Limited is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Services Authority.

We normally charge a fee for mortgage advice. The amount will depend on your circumstances. Our typical fee would be £395.00.