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  • Mortgages
    • Introduction to Mortgages
    • Mortgage Repayment
    • First Time Buyer
    • Remortgaging
    • Standard Variable Rate Mortgages
    • Fixed Rate Mortgages
    • Tracker Mortgages
    • Cashback Mortgages
    • Offset Mortgages
    • Second Charge Mortgages
    • Buy to Let
    • Self Build Mortgages
  • Protection
    • Introduction to Protection
    • Mortgage Protection
    • Redundancy / Unemployment
  • Life Assurance
    • Introduction to Life Assurance
    • Family Income Benefit
  • Health Insurance
    • Introduction to Health Insurance
    • Private Medical
    • Critical Illness
    • Income Protection
  • General Insurance
    • Introduction to General Insurance
  • Equity Release
    • Introduction to Equity Release
    • Types of Equity Release
    • Lifetime Mortgage
    • Drawdown Lifetime Mortgage
    • Home Income Plan
    • Home Reversion Plan
    • Costs
  • Mortgage Borrowing Calculator
  • Mortgage Repayment Calculator
  • Mortgage Overpayment Calculator
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  • Introduction to Mortgages

Introduction to Mortgages

Are you looking for a mortgage? Keen to understand all your options and make sure you don’t overpay with the wrong provider? We can help. We’re a team of independent mortgage advisers based in Newcastle-Under-Lyme and serving clients in the wider Staffordshire area, including Stoke-on-Trent. If you’re looking for expert mortgage advice, please contact one of our expert mortgage advisers today on 01782 346 491.

Mortgages are loans which are intended to help buyers purchase residential and commercial property. When an individual takes out a loan, the lender charges interest: the same is true of a mortgage.

A mortgage is a ‘secured’ loan, which means that the loan is secured against the value of the property being purchased until the mortgage is paid off. Sources of residential mortgages include high street banks, building societies and other types of less well known financial institutions.

Basic conditions

Mortgage providers follow a set of rules and procedures when deciding whether or not they will agree to provide a mortgage to purchase a residential property. Although different lenders apply different lending criteria, the amount a potential buyer can expect to borrow of a property’s purchase price is determined solely by the mortgage provider’s requirements.

Here are some of the factors lenders take into account when making their decision:

Affordability

The mortgage provider will want to be certain that the borrower can afford to service the loan — i.e. to make the monthly repayments as and when they fall due. To help them make that decision, the lender will want to see the borrower’s personal financial incomings and outgoings. Any rent the borrower may be paying will be discounted, but the lender will factor in the potential cost of the monthly mortgage repayment.

Deposit

The amount the borrower can contribute towards the cost of buying a property — the ‘deposit’ — is a major consideration. Because most mortgage loans are secured on the value of the property, mortgage providers prefer borrowers who can provide large deposits: the smaller the loan, the lower the lenders’ risk. And the larger the deposit, the lower the borrower’s monthly repayments will be, which reduces his or her outgoings and improves the affordability criteria from the lender’s point of view. In the current financial climate, most lenders expect borrowers to deposit at least 5% of the property’s purchase price.

Value

Mortgage providers lend against the value of the property, not the agreed purchase price. To avoid lending more than is absolutely necessary (and therefore increasing their financial risk) most mortgage providers will insist on having the property in question valued by a qualified surveyor.

Property type

Some lenders will not consider mortgaging certain types of properties. Leasehold properties, properties below a certain price, property being purchased through an assisted purchase scheme or under a Right to Buy scheme, or where property is being purchased ‘off plan’, may not be acceptable to the mortgage provider.

Time frame

Mortgage providers generally have a maximum number of years over which they lend and will set a date when the mortgage must be repaid in full.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST FORMS OF COMMERCIAL MORTGAGE AND MOST FORMS OF BUY TO LET MORTGAGE.

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Are you looking for mortgage advice? Please contact us today on 01782 346 491 – or you can visit our offices in Newcastle-under-Lyme for a chat. We work with clients from the local area and all around Staffordshire, including Stoke-on-Trent.

Company address: Synchro Mortgage Solutions Limited, Synchro House, 512 Etruria Road, Newcastle Under Lyme, Staffordshire , ST5 0SY
T: 01782 346 491 Email: [email protected]

Synchro Mortgage Solutions Ltd is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Limited, which are authorised and regulated by the Financial Conduct Authority in England and Wales.

Synchro Mortgage Solutions Ltd is entered on the Financial Services Register (https://register.fca.org.uk/s/) under reference 503078. Registered in England and Wales.

The guidance and/or Information contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Company Registration Number: 06582889. Registered address same as company address.

Synchro Mortgage Solutions are highly experienced insurance and mortgage brokers based in Newcastle-Under-Lyme and Stoke-on-Trent.

Mortgage Brokers in Newcastle under Lyme

Insurance Brokers in Newcastle under Lyme

Mortgage Brokers in Stoke-on-Trent

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Our initial advice is provided free of charge. There may be a fee for arranging your mortgage, the precise amount will depend upon your scenario and circumstances but this will typically be £495, payable on completion.

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