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SIMPLY MORTGAGES PLUS
Your friendly local mortgage and insurance broker
26 Douglas Crescent, Kelso, TD5 8BB
Mortgages
Mortgages - An Overview
Why use a mortgage broker for your mortgage?
Choosing a mortgage is probably the biggest financial decision you will make. However, with thousands of mortgages to choose from, it can seem like an impossible maze to find your way through.
A mortgage is a secured loan borrowed from a bank or building society in order to purchase a property. The money is then paid back to the lender over a fixed period of time, together with accrued interest.
There are many different types of mortgages and there will be one out there that best suits your requirements. If you’re going to make the most of your mortgage, you need to minimise the amount of interest that you pay.
We can find a mortgage product to suit your individual requirements. Whether you are a first time buyer, moving house, or wish to remortgage, we will endeavour to recommend a product to suit your needs.
A brief explanation of secured lending
Repayment Methods
There are basically two major types of mortgage repayment methods available in today's market:
Repayment
- We would normally recommend a repayment mortgage, which is structured so that the monthly mortgage payments pay off the original amount borrowed, as well as the interest that would be accrued over the mortgage term, by the end of the term.
Interest only
- So-called due to the fact that you only pay interest to the lender each month. The original loan amount remains the same for the term of the loan. Therefore a suitable repayment vehicle is required to run in conjunction with the mortgage in order to repay the loan balance at the end of the term.
Further Advance
As well as looking at a remortgage, another way to potentially raise further capital against your property with a secured loan is a "further advance" with your existing lender.
Because secured loans are less risky for providers and can be taken over a longer period, on a monthly basis they are usually cheaper than an unsecured loan. However, you may in fact pay more interest over the total term of the loan.
Further Advances are mostly suitable for borrowing large amounts of money over the longer term - for example, for home improvements.
"Second Charge" Secured Loans
A "second charge" secured loan is a way of raising more capital against your property with a lender other than your current mortgage provider. This second lender will then take what is called a "second charge" on your home.
These types of loans often have higher interest rates and more fees than the other options but can be of use if factors make it unsuitable to either remortgage or raise a further advance against your current mortgage.
Second Charge loans are mostly suitable for borrowing large amounts of money over the longer term - for example, for home improvements.
With a secured loan, the lender has the right to force the sale of the asset against which the loan is secured if you fail to keep up the repayments.
Before deciding to borrow money, it is important to work out if you will be able to repay it in the future.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME TYPES OF PERSONAL LOAN
Regular Reviews
Our service to clients
At Simply Mortgages Plus, we aim to offer our clients a regular mortgage review because the market is always changing.
Your requirements
People’s circumstances and requirements do not stay the same, and in the current economic climate it is worth taking the time to review your arrangements.
Right product for your needs
As independent mortgage experts, we give advice for the benefit of our clients, not the lenders, and can search a comprehensive range of mortgages from across the market to get the product that is right for you.