Home Buyer mortgages

If you have already got or had a residential mortgage and want to move house, there are thousands of options for you to consider. We will help you through the whole process, from initial consultation to picking up the keys to your new home! We will use our expertise to find the best mortgage to suit your specific needs. Many of the mortgages we offer you are only available through independent, whole of market and regulated mortgage brokers like South Manchester Mortgages.

Fixed Rate Mortgage

A fixed rate mortgage has an interest rate that is fixed for an initial term – this could be to a specific date or period of time including two, three, five to ten years. These are mortgage deals that offer you the chance to secure your rate to give you fixed monthly repayments. By choosing one of these, you don’t need to fear fluctuations in interest rates. The rate will remain the same over the specified period, no matter what happens to the Bank of England’s base rate or lender’s standard variable rate (SVR). It’s important to think carefully about how long you want to lock yourself into a mortgage for. Most will charge you a penalty – known as an early repayment charge (ERC) – if you need to get out of the deal before the end of the fixed term.

Tracker or Variable Rate Mortgage

Tracker mortgages usually track the Bank of England base rate, and as a result, your mortgage repayments will change when the base rate moves up or down. Tracker mortgages typically track the Bank of England base rate at a set margin above or below it. So, for example, if the base rate is 0.5% and a tracker deal is advertising a rate of base plus 2.5%, then you will end up paying a rate of 3%. Tracker deals are usually available for two, three or five years before you move onto the lenders standard variable rate. However, you could opt for a lifetime tracker instead, which tracks the base rate throughout the entire term of the mortgage.

Capped Mortgage

Alternatively, if you are happy with a variable rate mortgage, but want to be certain that costs won’t exceed a certain level, then you might want to think about a capped mortgage, where rates can move up and down, but there is a cap above which the rate can’t go. Discounted Mortgage Discounted mortgages are another alternative to tracker mortgages. These are also variable rate mortgages, but offer a discount off a certain interest rate, usually the lender’s standard variable rate. The discount is typically for two to five years, although it can last for the whole term of the mortgage. There will generally be an early repayment charge if you pay off the mortgage during the discounted period.

Fixed Rate Mortgage

If you have already got or had a residential mortgage and want to move house, there are thousands of options for you to consider. We will help you through the whole process, from initial consultation to picking up the keys to your new home! We will use our expertise to find the best mortgage to suit your specific needs. Many of the mortgages we offer you are only available through independent, whole of market and regulated mortgage brokers like South Manchester Mortgages.

Offset Mortgage

An offset mortgage links your savings, and in some instances your current account, to your mortgage. As a result, instead of earning interest on your savings, you pay less interest on your mortgage. For example, if you had a £100,000 mortgage and £20,000 in savings offset against it, you would only pay interest on £80,000. However, your monthly mortgage payments will probably be based on the full £100,000 loan meaning you effectively over pay each month. As a result, not only do you pay less interest on your mortgage, you will also pay it off more quickly. Offsetting can also be extremely tax efficient. Ordinarily you pay income tax on any interest you earn on savings (apart from ISAs). However, if you offset your savings against your mortgage, you don’t earn any interest so there is no tax to pay. Please talk to us about the options available if you would like an offset option with your mortgage.

Fixed Rate Mortgage

Few lenders offer actual mortgages if you’ve no property in place – they offer a Mortgage in Principle (MIP) or an Agreement in Principle (AIP). This provisionally lets you know how much you can borrow, subject to finding a suitable property in a specified time. An Agreement or Mortgage in Principle is an important step in applying for a mortgage. It gives an indication of whether a lender could lend you the amount you need to borrow. Lenders use a soft credit check to do this, which has no impact on your credit file. The process is relatively speedy and requires some personal information, including details of your income and financial commitments, this information is used in the strictest confidence. Getting an Agreement/Mortgage in Principle does not mean you are committing to apply to that lender for a mortgage. However, once you have one, you’ll be ready to discuss all the options we can offer. We do not charge for this service.