Mortgages

Understand your options

Before searching for a mortgage, it’s useful to understand the various options available to you. You need to decide whether you prefer a repayment or interest-only mortgage and whether a fixed or variable rate is better for you. Don’t worry if you’re not sure — our mortgage brokers can discuss these in more detail with you to help you choose the right ones.

Repayment or interest-only?

With a repayment mortgage, also known as a capital and interest mortgage, you repay part of the loan amount (the capital) as well as some of the interest you owe when you make your monthly payments. This is a popular option and means you will have repaid the loan at the end of your mortgage term, such as 25 years.

As you might expect from the name, you only pay the interest due each month when you opt for an interest-only mortgage. As none of the capital is repaid during your mortgage term, the entire loan has to be repaid at the end of it. This option can be appealing because the monthly payments are lower than a repayment option but you’ll need to provide proof to the lender that you have a way to repay the loan when your mortgage term comes to an end.

Fixed or variable rate?

With a fixed rate mortgage, you pay a set interest rate for a specified period at the start of your mortgage, such as 2, 3 or 5 years. This way, you know exactly what you’re paying each month. It’s a good option if you prefer to limit your risk – you can have peace of mind that your payments won’t increase if the Bank of England increases the base rate – but a fixed rate mortgage usually comes with a higher rate of interest than a variable rate mortgage.

The interest payments you make for a variable rate mortgage can go up and down throughout your mortgage term. There are different types of variable rate mortgages to choose from, such as one with a lender’s standard variable rate (SVR) as well as tracker, discounted rate and capped rate mortgages.

• Standard variable rate mortgage: The rate for this option is set and adjusted by your lender. It’s usually higher than other rates but if your existing mortgage uses the lender’s SVR and you choose to stay with the lender when you remortgage or find a new home, you won’t need to pay an early repayment charge.
• Discounted rate mortgage: You can benefit from a discounted rate for a specified term, which is usually between 2 and 5 years, before the rate switches to the lender’s higher standard variable rate.
• Tracker mortgage: This type of mortgage tracks an interest rate, which is usually the Bank of England’s base rate, and you pay a fixed percentage on top. As the base rate fluctuates, so do your payments. Some tracker mortgages have a collar rate, which is a minimum rate set by your lender. You can opt to have a tracker rate for an introductory period before switching to the lender’s SVR or for your entire mortgage term.
• Capped rate mortgage: With this type of mortgage, a cap is set so that the rate you pay cannot exceed it. This gives you peace of mind that your rate can’t go higher than the cap even if interest rates continue to rise. You can also benefit from lower payments when interest rates decrease

First-time buyer mortgages

Buying your first home is an exciting time and our mortgage brokers – located throughout Kent, London and Edinburgh – can take you through the process step by step from the moment you get in touch with us until the day you collect your new front door keys. As a first-time buyer, you can benefit from incentives provided by lenders to help you on the journey towards being a property owner. You may be given a discount at the start of your mortgage term, for example, so that you have funds available to cover your moving costs or other expenses. You may be offered lower fees or be approved for a higher loan-to-value (LTV) ratio so that you can pay a lower deposit.

Our mortgage brokers have access to the latest deals available and can ensure you benefit from the optimum mortgage deal as a first-time buyer. Simply give us a call on 01322 907 000 and our mortgage specialists can ascertain the loan amount you can apply for and provide you with a mortgage in principle. They can advise you on the various schemes available to first-time buyers and help you with other important issues, such as guiding you on the different types of surveys to choose from, recommending a solicitor to handle your purchase and arranging your home insurance. If it’s out of office hours, send us an email at info@trinityfinance.co.uk or an enquiry via our contact form and one of our friendly advisers will get in touch with you as quickly as possible.

Remortgages

Is your current mortgage deal ending soon and you want to check for a better deal before reverting to your lender’s SVR? Have your circumstances changed and you need to make lower monthly payments over an extended mortgage term? Are you earning a higher income and wish to make overpayments but can’t under the terms of your existing mortgage? Do you want to release some of the equity tied up in your property? Whatever your reasons for remortgaging, our experienced mortgage brokers can assess your circumstances and search for competitive solutions that best suit your needs.

As your mortgage is such a large financial commitment, it’s of the utmost importance to stay on top of your product and rate. This competitive market is always moving, providing you with opportunities to benefit from new products and better rates when you remortgage. We have the latest state-of-the-art product sourcing software to help you find alternative products with appealing rates and more flexible terms. We also operate a diary system, which enables us to remind you of the impending end date of your existing mortgage product. This gives us plenty of time to shop around on your behalf to find and secure the best deal, preventing your current mortgage from automatically switching to your lender’s SVR, which will typically be higher than other rates available.

As part of our remortgaging service, we check whether the option is available to stay with your existing lender and choose a new product, assuming that they offer competitive rates and it’s in your best interest to do so. We take into account the fees payable, such as an early repayment charge, in contrast with those charged by a new lender and compare the available deals to find the best financial outcome for you.

To find out more about how remortgaging can benefit you, give us a call on 01322 907 000. Our mortgage consultants can streamline the process to release funds from your property, reduce your monthly repayments or secure more flexible terms.

Buy-to-let mortgages

Owning a property that’s used for buy-to-let purposes is becoming an increasingly popular choice. Rental properties are in high demand and you can benefit from high rental yields as a landlord. More and more lenders are offering enticing deals that cater to different types of investors whether you’re a first-time landlord or are experienced and already own a portfolio of buy-to-let properties.

Our expert mortgage brokers, with first-hand knowledge of buy-to-let investments, can help with every aspect of your purchase from start to finish. As well as ascertaining how much you can borrow for a buy-to-let mortgage and processing your application, they can guide you on preparing your property for rental purposes and the duties you’ll need to fulfil in your role as a landlord. There are numerous costs associated with buy-to-let investments that you may not have considered, such as income tax and landlord insurance, and our financial advisers can discuss these with you to ensure you have correctly budgeted for everything. You can also benefit from helpful tips on how to manage your investment once you’ve completed on the purchase.

Give us a call on 01322 907 000 to secure a competitive buy-to-let mortgage and look forward to reaping the rewards from your new investment. Whether you’re a first-time buyer, an experienced investor, have inherited a property or wish to buy a new home and rent out your existing one on a let-to-buy basis, we can find the best solutions for your buy-to-let mortgage, insurance and tax needs.

Offset mortgages

When you have adequate savings, an offset mortgage may be an appealing choice for you. This is linked to your savings account and the balance of your savings is offset against the value of your mortgage, helping to reduce the amount of interest that’s payable. For example, if you have a £300,000 mortgage and savings of £15,000, the interest payable is only calculated on the difference of £285,000. This is different from a standard mortgage when you are charged interest on the total outstanding amount. An offset mortgage can, therefore, save you a considerable amount on the interest payments over the full term.

Offset mortgages are flexible in that you can choose whether to reduce the interest payments you make each month or shorten your mortgage term. You won’t earn interest on the savings held in your linked account but this means you also won’t be taxed on them. You can also access your savings account and withdraw funds from it whenever you need to. Just bear in mind that this reduces the amount to be offset against your mortgage and, therefore, increases the interest that you have to pay. As well as withdrawing funds, you can add funds to your savings account, which increases the amount to be offset against your mortgage and decreases the amount of interest that’s payable.

The interest rate charged for this type of mortgage can be slightly higher than the rate payable for a standard mortgage. Our mortgage brokers can compare the deals available to check the potential savings you stand to make with each option. Some lenders also provide the option for you to make overpayments, which is a good way to repay some of your actual mortgage loan. If you’re interested in this extra flexibility, our mortgage brokers can check whether or not you’ll be liable for early repayment charges by the lenders offering this possibility. Give us a call on 01322 907 000 if you think having an offset mortgage may be the best decision for you. Our expert brokers can advise you on the minimum level of savings required by lenders and determine how advantageous this type of mortgage can be for you compared with the alternatives available.

Moving home

Moving home can be stressful enough without worrying about your mortgage. With access to an unrestricted range of first and second charge lenders, we are perfectly positioned to give advice and recommendations on an unlimited range of lenders’ products and criteria. Our mortgage brokers can also guide you on the related costs, including stamp duty, survey fees, estate agency fees, solicitor fees and the potential costs of moving.

If you already have a good mortgage deal with your lender and are reluctant to switch to another product for your new home, we can assist you with transferring your current deal, known as porting your mortgage, when possible. This not only saves you from having to find a new deal but may be more cost-effective than switching to a new mortgage. First, our mortgage specialists will check that your mortgage is portable, that you still qualify for the mortgage and what early redemption fees you may be liable for if you change to a new deal. Then they’ll research what other mortgage deals are available and present you with the various options. You can then weigh up the costs and terms of any new deals compared with your existing one to decide whether or not you still wish to port your mortgage. If you wish to port your mortgage and borrow more, our mortgage brokers will check whether the total costs work out lower than those needed to remortgage.

Have you considered retaining your existing property to use as a rental investment when you move to a new one? Our highly experienced advisers can arrange a let-to-buy mortgage for you and, if your property has sufficient equity, can also help you release funds to cover some of the costs, such as the deposit for your new home and the fees for both transactions.

Simply call us on 01322 907 000 when you’re looking to move home and our specialist consultants will provide you with impartial mortgage advice to help you make the best decision. Whether you prefer to take advantage of a new deal, port your existing mortgage or benefit from a let-to-buy arrangement, our advisers can provide the answers to all of your questions and advise you on the best way to move forward.

Additional borrowing

There are times when you may need to borrow a substantial amount and it’s more economical to keep your current mortgage product and use additional borrowing. You may, for example, wish to carry out renovations, go on a dream holiday, help a loved one get onto the property ladder or enjoy a better lifestyle during your retirement. Ways to obtain additional funding can include a further advance, a second charge mortgage, a remortgage or equity release. We work closely with specialist lenders offering niche products and our mortgage experts will present your application to the right lender to ensure you secure the additional funds you need in as short a time as possible.

Specialist mortgages

Everyone’s circumstances are different and, as such, the standard types of mortgages available may not necessarily be suitable for you. You may have a complex financial situation or need specific requirements in a mortgage. As mentioned above, we have formed close relationships with lenders providing specialist mortgages that can cater to any situation.

You may be self-employed or a contractor, for example, needing a lender with a tailored approach to their assessment criteria. You may be having difficulty passing a lender’s affordability checks or have been unable to save an adequate deposit. In this case, a guarantor mortgage may be a good solution for you. You may be struggling to secure a mortgage due to having bad credit and this is when a bad credit mortgage enables you to purchase a property despite being impacted by credit issues. Instead of buying an existing property, your dream may be to build your own and a self-build mortgage lets you do just that. You may be looking to buy or convert a property for HMO purposes, needing an HMO mortgage instead of a standard buy-to-let one.

As a high net worth individual, your complex income stream and loan requirements may reduce the availability and flexibility of large mortgage loans that you can find. A bespoke high-value mortgage via a specialist lender or private bank takes your unique circumstances into account. When purchasing a property for business purposes or as an investment, you need a commercial mortgage. This type of mortgage can be complex and your case will be assessed individually by a commercial lender. You may live abroad and wish to buy a property in the UK or refinance your existing UK property. In this case, you need to secure an expat mortgage. If you’re retired and only have your pension as a source of income but already own a property, you can benefit from a retirement mortgage, such as a retirement interest-only mortgage or a lifetime mortgage.

As you can see, there are many specialist mortgages available. They all have different criteria and varying levels of flexibility to suit your needs and circumstances. Our specialist mortgage brokers provide a tailored service, carefully preparing and presenting your application to the most suitable lender. Call us on 01322 907 000 to discuss your unique funding needs and our mortgage specialists will find a bespoke mortgage solution for you