Contact Us By Phone
0800 0 430 530

Mortgages

The principle is easy. Find a property, agree a price, borrow enough money to buy it, make a monthly payment to the lender and live happily ever after.

How much can you borrow? It is not just a case of a simple income multiple these days, many lenders prefer to work on an ‘affordability’ basis.

But…Whilst the monthly cost is most important, cheapest is not always the best. Consider flexibility, approachability and service levels as well as hidden fees and you soon begin to realise that using a firm like Redwoods Financial Services makes a lot of sense.

We look at the whole market, not just the few that advertise in your newspaper. Many lenders will not deal direct with the public anyway preventing you from using them without assistance.

How many years should the mortgage last for? Will it extend into retirement? Should you pay only the interest or capital as well as interest? Should you be looking at a fixed rate of interest or a variable rate? Will you be fined if you repay the mortgage early? (Up to 6% of the outstanding loan!!). Can you avoid a fine by taking the mortgage with you to your next home?

What is important to a lender? Of course they want to satisfy themselves that you have enough income to pay the mortgage. What other commitments do you have (loans, credit cards, maintenance payments etc)? How have you conducted your financial affairs to date? – A quick check with a Credit Reference Agency will reveal all for the past six years. Apart from credit checks there are credit scores. Points mean prizes! The more points you get the more they like you. If you don’t achieve a pass mark you won’t be offered a mortgage. The proposed property obviously has to be acceptable to the lender in terms of construction and conditions. If leasehold, the remaining lease has to be long enough.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE