Mortgages UK

A mortgage is a simple transaction, involving the  lending/borrowing of money secured on a specified property.

The deal works for both parties. The borrower gets to purchase a property, subject to ability to service debt repayments, without having to save the capital.The lender gets to make a slow profit, based on the difference between the rate at which they can borrow money, and the rate at which they can lend that money out, with tangiable assets in the form of the property, acting as security for both parties

What's different about this UK Mortgage website?

I've looked at a lot of uk mortgage websites (If you are wondering why I keep referring to UK mortgages, rather than just mortgages - it's to distinguish this website from the majority of mortgage websites which are US based) and frankly, most are disappointing. They generally contain similar information - definitions of mortgage terms, links to various enquiry forms, which enable the website to make money, and perhaps some sort of mortgage sourcing system.

On this website, I provide the reasoning behind the terms, definitions and jargon, in plain english. It's often said that knowlege is power. Nowhere is this more true, than when choosing your mortgage. For example, how do you REALLY determine whether a fixed rate is the best option for you?.

Even if you are certain, without advice, that a fixed rate is the best type of mortgage for your particular circumstances, what factors should influence you decision on the term of the fixed rate?. How do you work out whether a fixed rate with no lender fees added, is better than a lower rate with added fees? What about flexibility during the fixed rate term? What if you want to make regular or lump sum overpayments? will the lender allow this during the fixed rate term?, or will they apply a penalty? If they do apply a penalty, why is this?.

What if you MUST have a mortgage offer quickly to ensure that the property becomes yours? Will your lender process things smoothly?, or infuriate you by asking for obscure paperwork, at all stages of the application?.  Is the lender CURRENTLY processing applications quickly?, or are they swamped with applications, due to market leading mortgage deals? or have they been recently understaffed, and are processing applications slowly, due the the time taken to train new personnel?

Simply offering a mortgage quote, is a tiny part of assisting you to purchase the property that you want, with the minimum of stress, and the maxi mum efficiency. It's no use applying for what appears to be the best deal, if the process takes so long that your hair turns grey, that the vendor sells the property to someone else.

Yes, things can go wrong, even with the simplest of mortgages. Vendors pull out for no apparent reason, vital paperwork gets lost in the post, surveys reveal problems, the legal process slows to a crawl, lenders change their terms, chains collapse, people die, get ill, lose their jobs, and get divorced - particulary at times of high stress.

What you need in these circumstances, is the tenacity, perseverence, and clear thinking to get the transaction completed. Alternatively, an experienced mortgage broker with an efficient processing team behind him. 

A mortgage is the largest financial transaction, or more correctly, series of lifetime transactions, that most of us will make

Consistently choosing the right mortgage for your circumstances can save you tens of thousands of pounds over the mortgage term.

Here's a very simple example of this:

Take a £100,000 interest only mortgage over a typical 25 year term - At a 6.5% interest rate, the total interest paid will be £162,500, and at a 5% interest rate, just £125,000, a saving of £37,500. That's why it pays to consistantly seek the best rates. 

The UK Mortgage market is mature and sophisticated. This means that you have the opportunity to select exactly the right mortgage for your circumstances, and also the opportunity to select from thousands of inferior mortgage products.

From my experience, a first time buyer will move to their second home after an average of 7 years. However the average household will change their mortgage once every 3 years.

If you don't change your mortgage to something other than your mortgage lenders STANDARD VARIABLE RATE when your discount, tracker, fixed rate or capped rate runs out, then you are simply subsidising the people who do. Most borrowers are now alert to this fact, and will remortgage when their current deal ends.

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