Mortgage Advice

All you need to know – in simple terms.

Mortgages

Look no further if you need mortgage advice! We are your INDEPENDENT mortgage experts based in Chester!

At Financial Fortress we have years of experience helping clients purchase their dream homes. We constantly searching the market to bring our clients the very best products that carefully match your needs. Your adviser will clearly explain all the features and any limitations helping you select the most suitable product.

We know which companies will lend to whom and understand their application process’s ensuring your application will contain all the information a lender requires to obtain a swift decision.

As whole of market mortgage company, we have developed relationships with the major lenders meaning we have individual contacts to get your mortgage arranged as quickly as possible. We understand this is an exciting time and work hard to get you in as quickly as possible!

Why you shouldn’t go to your bank

Looking to buy a first home, moving house, simply re-mortgaging or considering a buy-to-let? Then first rule of getting a mortgage is DONT USE YOUR BANK! Why?

Different banks have what we call different “lending criteria” and every bank will have up to 100 different mortgage deals. For example if you have 10% deposit and want to borrow over 25 years, the best deal may be X%, whereas a 25% deposit lender with a different term may get Z% deal. Given each bank has hundreds of “deals” and there are lots of banks – it is no surprise most clients tend to go to their own banks who they bank with.

Problem is, your bank will only sell their own products!! Whereas we sell EVERYONE’S!

Being INDEPENDENT brokers means we have access to the ENTIRE market (including the banks) to make sure that you get the very best deal based on your circumstances. Basically, we are the experts who shop around for you! GET IN TOUCH TODAY AND SEE HOW MUCH YOU CAN SAVE!

The Mortgage Process

Mortgage FAQ’S

How does a Mortgage work?

A mortgage is a type of loan provided by a lender (like a bank for example) to an applicant to help them complete the purchase of a property. The main difference being that with a mortgage rather than a bank loan, there is a “legal charge” created on the property, meaning that should the applicant miss any payments on the mortgage, they are at risk of having their house repossessed by the lender. The lender therefore has “security” of the property and so is sometimes called a “secured loan”. There are 2 main types of mortgage, arranged on either a repayment or interest only basis (more on this later). Your dedicated expert will explain the most suitable mortgage for you, finding the best solution for your needs!

What is a repayment (AKA capital & repayment) mortgage?

A repayment mortgage (AKA capital & Interest mortgage) is the method used to ensure your loan is eventually repaid in full, ie: at the end of your agreed term the debt will be repaid in full. When making monthly payments, some of the payment goes towards the interest aspect and some towards reducing the capital or actual loan itself. As a rule of thumb, the longer the mortgage term selected – the more overall interest that is paid back and possibly the lower monthly payments. (A shorter term being the opposite – higher monthly payments and less overall repayable in interest). It’s also worth being aware that on this type of mortgage, you pay off more of the capital each month as the term goes along and so long as the payments are kept up to date, you are GUARANTEED that the mortgage debt itself will repaid at the end of the chosen term.

We would recommend that your main residence is always bought using a repayment mortgage wherever possible. It is also possible to have some of your mortgage as mixture of both repayment and interest only strategies. Remember, we are INDEPENDENT – your named and dedicated expert will advise on the best strategy for your needs ensuring you fully understand the pro’s and con’s of each.

What is an interest only mortgage?

An interest only loan is a method where the applicant only repays the interest due and NOT the actual debt itself, meaning your loan will never be repaid in full unless you have another way to repay it. When making monthly payments, only the interest aspect is paid to the lender, not the debt itself so at the end of the term you still owe amount borrowed. Taking out a shorter or longer term mortgage will have no effect on the monthly payments as it is only the interest due that is being serviced. As long as you keep your payments up to date, you continue to have control of the property. You should ensure you have an alternative way of paying the debt when the term ends (for example using investments/alternative source of funds/or selling the property itself).

We would recommend that only additional properties (ie: additional to your main residence) are considered for interest only. They are more common for buy to let, second homes or investment properties where the applicant is looking for lower monthly payments to cope with rental voids or to maximise profits for example.

It is also possible to have a mortgage that is on mixture of the 2 strategies, either part interest only and part repayment. Remember, we are INDEPENDENT – your named and dedicated expert will advise on the best arrangement for your needs ensuring you fully understand the pro’s and con’s of each.

I’m self-employed, can you still help?

If you have 2 years worth of full years accounts, you are in a position with most lenders subject to individual criteria. It is sometimes possible to obtain a mortgage using either just the latest year only or just one full year but this will usually result in higher interest rates and higher monthly payments. Your named INDEPENDENT expert knows what lender are specialists in this area and if its possible to help, we will!

What is a LISA?

A Lifetime Individual Savings Account (LISA) is a type of Individual Savings Account (ISA) that can be used to help save for your first home, retirement or both.

If you take out a Lifetime ISA, the government will give you a bonus worth 25% of what you pay in, up to a set limit, every tax year. Currently you can pay up to £4,000 every tax year and claim a bonus of £1,000 per tax year.

What is an Early Repayment Charge (ERC)?

Early Repayment Charges are payable when you repay a mortgage early usually within the time period of any “special deal” or “fixed rate” that the lender is providing. These may be payable if you sell the house within a time period or look to overpay the mortgage by more than the lender allows. Most lenders allow up to 10% of the capital being repaid annually without charging ERC’s within the agreed period. A typical ERC period is a fixed term from when the loan started (maybe 2, 5 or 10 years for example).

Why use a mortgage adviser?

Simply put, a great INDEPENDENT broker will work with all lenders, know each lenders individual criteria and be able to advise on the very best /cheapest deal that is available. We will get to know you personally and only ever recommend mortgages that you definitely qualify for. Remember multiple mortgage applications WILL damage your credit file! We can also obtain exclusive rates not available to the public direct and take you through the entire application process as seamlessly as possible. Your adviser will deal with other experts such as conveyancers/solicitors/estate agents and accountants meaning your mortgage is arranged as quickly and painlessly as possible. We will save you money and take away all the stress and hassle from the process.