Mortgages

Whatever you're situation...from buying your first property, trading-up to a larger home, down sizing or re-mortgaging, it is important to obtain the right advice from someone you can trust and has links to a wide range of financial packages. Mountain Finance has access to the whole of the mortgage market (not just a panel of lenders) and can source a range of mortgage packages to suit most circumstances.

Whether you are buying a new home, BTL, piece of land or re-mortgaging we will analyse and evaluate your situation offering you some viable options. Whether you want fixed, tracker, offset, RTB, BTL or Help to Buy Mountain Finance can help secure you the best mortgage options.

Residential Mortgages

This is where a person(s) will buy a property to live in and use as their main residence. Like with all mortgages the key elements that all banks look for in offering a mortgage are income proof, affordability, credit and deposit levels.

Right to Buy

Under the 1981 Housing Act, tenants living in Local Authority or Housing Association property have the right to purchase their home. Specific conditions relating to the right to buy scheme apply, but in general a secure tenant who has been living in their home and paying rent for more than two years has the right to buy the property.

Raising a Right to Buy mortgage is usually a straightforward process; there are a number of options available from lenders. Taking into account your needs and outgoings, the Mountain Finance mortgage team will supply you with comparisons and information on the mortgage that is likely to best suit your situation.

Shared Ownership

Shared ownership is a scheme designed for people who can not afford to purchase their own homes outright, historically only available to key workers such as Doctors, Nurses, Fire-fighters etc… However due to increased house prices in the UK over recent years this scheme has now been available to private individuals. By purchasing part of a property and paying rent to a Housing Association or Local Authority who will own the other part, people are able to get on the property ladder. As well as the mortgage for your share of the property (usually 50%, but can be higher or lower), you will also have a lease agreement with your social landlord for the part on which you pay rent.

Government help to buy scheme... there are 2 types:

1. NEW BUILDS - Where the government will underwrite up to 40% of the mortgage debt in the form of equity loan paid to the developer and as long as the buyer has 5% deposit the client can attain a 75% LTV mortgage product. The 40% loan effectively is paid back only when the property is refinanced or sold.

2. 95% LTV purchase – in order to get the market moving t this high LTV value the government introduced a 95% product to allow 1st time buyers t get on the ladder. Since its introduction other rival banks have also entered this market and now compare favourably to the government product.

Offset Mortgages

Offset mortgages make use of the money in your savings and current account to save you money on your mortgage. What this means is the more you have in these account the less you pay out in mortgage interest. This type of mortgage is not for everyone, they are predominantly for clients with large savings or for persons who receive regular bonuses.

Buy To Let

Investing in property has become increasingly popular over recent years as a method of investing for the future whilst in the short term creating a steady monthly income. Buy to Let mortgages are assessed on the amount of rent achieved per month as a rental property opposed to the level of income a person earns and whether it is deemed affordable. Historically you will need a minimum of 25%-30% deposit.

Buy to Let Mortgages are designed for those wanting to buy property and let it out to tenants, offering the opportunity to have an income whilst realising an increase in the value of their assets, although there is never any guarantee that property prices will continue to rise.

When buying a property to rent there are a number of key factors to be taken into consideration - property value versus the potential rental income, type of property and rental type to name but a few. Mountain Finance’s experience in this market enables us to find the right mortgage at the most competitive rate.

Auction Properties

Increasing in popularity is the purchase of property at auction. In order to purchase a property here you will need a 25% cash amount or bankers draft on the day if the property is secured and you must complete within 28days from the date of auction. Invariably people who buy at auction are experienced landlords and property developers. To secure finance in this short time period can prove difficult and certainty to meet the time scale is imperative in this situation, there fore at Mountain Finance we are able to offer clients standard mortgages as well as Bridging Finance where needed.

Mortgage Products & Types of interest rates

There are numerous mortgage products available in the market place.

Fixed rate mortgage

A fixed rate mortgage is what it says, no matter what happens to interest rates in general, your monthly mortgage payments will stay the same for an agreed period, usually between two and five years. At the end of the fixed period your mortgage will change to the lenders prevailing variable rate.

Variable rate mortgage

Based on the lenders' SVR, the monthly repayments of this mortgage are likely to be up or down in line with fluctuations in the Bank of England base rate. Experience shows when the base rate moves up lenders' will usually increase monthly repayments, but do not always lower them when the base rate moves down.

Tracker mortgage

Similar to variable mortgage, but the interest rate on your mortgage will usually be 1.5% to 3% above the Bank of England base rate. When the base rate moves up or down, you are guaranteed that this is reflected in your mortgage rate; your monthly repayments will increase or decrease accordingly

Discount mortgage

This type of mortgage offers a discount on the lenders' variable mortgage rate for a set period of time. The reduction in monthly payments during the discount period is designed to help with the cost of moving. At the end of the discount period your monthly repayments will increase, the interest rate will revert to the lenders' prevailing variable rate.

Credit

Adverse Credit

A person with a County Court Judgment (CCJ) who has been made subject to a Individual Voluntary Arrangement (IVA), declared bankrupt or defaulted on loans or other repayments will have an Adverse Credit Rating.

An Adverse Credit Rating is not a bar to having a mortgage or re-mortgaging an existing property. Many lenders are now prepared to offer mortgages to discharged bankrupts and those with CCJs, IVAs or defaults. Usually these mortgages attract higher interest rates however the choice of options is now greater and more competitive. The Mountain Finance mortgage team search the mortgage market place to find you a competitive and suitable solution.

Commercial Mortgages

Commercial Mortgages from specialist lenders, packages negotiated, to suit your business requirements Mountain Finance has access to a variety of Commercial Finance options. We are able to source mortgages for all types of commercial and semi-commercial premises including agricultural, industrial, leisure, offices, hotels, public houses, restaurants and retail.