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Mortgages - Types of Mortgages

We can cater for the different types of mortgages as below

A - Owner occupier- Regulated

The  typical mortgage accessible from high street lenders or deals available exclusively through brokers. We can access both to meet our clients  specific needs.
   
Loans that required Consumer Credit license, including credit broking

1-First Time Buyer

Applicants who have not held a mortgage for a certain period, such as in the last three years
Some lenders specify that  applicants to the mortgage need to be First Time Buyers to    qualify for First Time Buyer products/discounts

2-Homebuyer

Such as Home Mover - Applicants moving home and taking a loan on another property

3- Shared Ownership

The Pros & Cons of Shared Ownership Schemes

Evaluating the advantages and disadvantages of any potential project is essential before deciding whether to proceed. Given that a home is likely to be the most expensive thing you will ever purchase, it's imperative that you carefully weigh up your options before going ahead.

The Pros - Benefits of Shared Ownership Schemes

- It helps you get that first foot on the property ladder, especially if you do not have enough deposit.
- It may enable you to buy a bigger property than you would otherwise be able to afford.
- If you are on a low income, housing associations will usually give you priority. They will typically consider what money you have coming in, as well as your housing need (i.e. whether you have children).
- Your combined monthly rent and mortgage repayment might be less than if you had bought the property outright.
- You may need little or no deposit.
- You will be exempt from paying stamp duty if the share you are buying is worth less than the lowest stamp duty threshold.
- It is an investment, allowing you to receive a share of the increase in the value of the property should you sell.
- You can build up the share of the property you own until you own it outright, thus investing in your own home rather than just paying rent.
- You save money on maintenance and redecorating as the housing association is typically responsible for the property's structure.
- It is a useful scheme for people who expect their income to increase in the future.

The Cons - Potential pitfalls of Shared Ownership Schemes


The problems you experience will largely depend on the terms of the shared ownership scheme you use, which is why you should ensure that you read terms and conditions thoroughly before going ahead. However, below are some of the more general problems that might occur:

- There may be limited or no properties available for shared ownership in your preferred area.
- You may not qualify to participate in a shared ownership scheme.
- You still have the responsibilities of a homeowner but the home does not belong  to you only.
- As you do not fully own the property you may have to ask for permission from the housing association regarding redecoration or home improvement.
- Valuer’s and Solicitors fees are payable should you wish to increase your share of the property.
- There may be restrictions upon selling.
- Some Housing Associations may restrict your ability to buy further shares or may retain the right to buy back the property when you sell.
- Even if you own your home outright, you may still have to pay some service costs to the housing association. 4

If you wish to discuss this or any other mortgage option in greater depth please contact our mortgage advisors.


B - Non Owner Occupied mortgages, including Business Mortgages- Non regulated

Typically these can include

1-Buy To Let

Purchase of residential properties to rent out

2- Commercial Mortgages

These are typically used for businesses. Here too deals can be accessed high street lenders as well as funding available through brokers

3- Bridging

 To access funding , typically up to a year

These can meet the needs of:

  1. Commercial bridging loans –Investment and owner occupied properties
  2. Buy to let purchases- including at auction and refinancing
  3. Re-development loans to allow for the conversion or refurbishment of an existing building

Flexibility:  to allow a loan to be tailored to a client’s specific needs, such as rolling up interest, paying monthly or a hybrid

Speed :  loans can be sanctioned from one week

 



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