Buying your first home is one of the most exciting and important things you will do in your life, however it can also be a nerve-wracking experience and that’s where we come in.
Buying your first home can be both an exciting and nerve-racking experience.
The exciting bit is having your own front door and space to call your own; the nerve-racking part can be finding somewhere you can afford, saving enough for the deposit and getting a mortgage product that’s right for your financial circumstances.
We know what’s happening in the market, so we will make your mortgage application to the most appropriate lender when the time is right.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Whether you’re looking to move to that forever family home or are downsizing later in life, McGill Mortgages can assist with that home move.
Moving house is an exciting time, and we’re here to make sure you find the right mortgage. Whether this is your first move or you’ve moved house before, we can take the hassle out of finding the right mortgage for you.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Whether staying with your current lender or moving to a new one, we’ll find the right remortgage for you.
There are numerous reasons why someone would want to do a re-mortgage. Searching lenders and available deals could save a considerable amount of money. Here are few reasons why you would want to use a broker:
You may have to pay an early repayment charge to your existing lender if you remortgage.
Purchasing a new build can be a great option for both first time buyers and home movers however there are a few additional factors when finding the best mortgage.
Purchasing a new build can be a great option for both first time buyers and home movers however there are a few additional factors when finding the best mortgage. Lenders have set limits on how much deposit is required depending on if you’re buying a flat or a house and there are also restrictions on builder incentives if you are fortunate enough to be offered those.
Offer validity periods can also be tailored around completion dates if your new build home isn’t going to be ready imminently.
We are new build experts who work with a variety of builders and can guide you through those additional complexities.
Preferential interest rates if your “Green” home meets certain standards of energy efficiency.
As climate change continues to pose an ever increasing threat, both brokers and lenders alike are committed to doing their part to help the future of the planet. To support this a number of lenders are now offering ‘green mortgages’, which provide preferential interest rates if your home meets certain standards in terms of energy efficiency.
Please contact us to find out more about green mortgages and whether your current or potential new home qualifies.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
A Buy-To-Let mortgage is for people who buy a property as an investment either in your name or limited company.
Rising property values and a booming lettings market has meant that many lenders have developed mortgage deals tailored to the needs of would-be landlords.
A Buy-to-Let mortgage is a loan for purchasing a residential property that is let to tenants rather than lived in by the borrower.
The typical deposit required is likely to be around 25%, although better deals will be available to those who can put down as much as 40% of the purchase price.
Most Buy-To-Let mortgages are available on an interest only basis.
Lenders will consider the potential rental income the property will generate when deciding whether to grant the loan.
A Buy-to-Let mortgage will be secured against your property.
The Financial Conduct Authority does not regulate some forms of Buy-to-Let mortgages.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
Your property may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Some borrowers have more complex borrowing needs. These are some of the more specialist mortgages that are available.
Some borrowers have more complex borrowing needs. These are some of the more specialist mortgages that are available.
Bad Credit Mortgages
All lenders will conduct a credit check on anyone applying for a mortgage. Many high-street banks may refuse to offer a mortgage if you have a bad credit history, but there are specialist bad-credit mortgage lenders who will be more flexible when assessing your mortgage application. However, the mortgage offered may mean you need to put down a larger deposit and be prepared to pay higher- than-average interest rates.
Alternatively, you may want to consider trying to improve your credit score before applying for a mortgage, in order to increase your chances of being accepted for a standard mortgage.
It pays to be cautious about applying for a mortgage if you think you might be rejected. This is because every time you apply for credit it is likely to be recorded on your credit history and unsuccessful applications can bring down your credit score.
An impartial mortgage adviser can make recommendations based on your own individual situation.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Ltd Company Buy-to-let
With a reduced range of products, you need to choose the mortgage that is best for you. This isn’t just a question of opting for the lowest interest rate and cheapest monthly repayments. Like residential mortgages, buy-to-let mortgages need to be compared in terms of any extra fees that may be applicable, as well as additional benefits they offer.
Consulting an experienced, impartial mortgage adviser is advisable as they can provide expert advice on which product is best for your needs.
A Buy-to-Let mortgage will be secured against the property. The Financial Conduct Authority does not regulate commercial Buy-to-Let mortgages.
Portfolio Buy-to-Let
New affordability rules were introduced in 2017, which mean that portfolio landlords need to meet specific affordability rules for all properties they own, rather than the overall affordability of their portfolio, when applying for new finance.
However, some lenders use a method called ‘top-slicing’ when assessing your application. This allows the lender to take into account any additional income you have, apart from rental income, when they calculate what they are willing to lend you. Top-slicing is unlikely to be appropriate if you have little in the way of disposable income or savings and therefore do not have income to cover unforeseen events.
If you are already a portfolio landlord or you are aiming to grow your property portfolio, you could consider a portfolio mortgage which allows you to have the whole portfolio under one mortgage.
A Buy-to-Let mortgage will be secured against your property. The Financial Conduct Authority does not regulate some forms of Buy-to-Let mortgages.
Learn more about mortgage services. We're here to help you.
Having a survey carried out on a property before you commit to buying it makes financial sense, as it can save you thousands of pounds in repair bills. There are various options available, and we can offer help and advice on choosing the type that meets your needs.
Surveys – what you need to know
A mortgage valuation isn’t the same as a structural survey. A mortgage valuation is undertaken by your lender to assess whether the property you want to buy is sufficient security for your loan. It won’t tell you about the state of the property or show up any underlying faults in the way that a survey does.
There are two main accrediting bodies for surveyors – the Royal Institution of Chartered Surveyors (RICS) and the Residential Property Surveyors Association (RPSA) – and you should check that your surveyor is a member of one of them.
RICS surveyors offer three levels of survey:
RICS Condition report:
This is the most basic form of survey and is aimed at new build and conventional homes in good condition.
RICS Homebuyer Report:
The next level up, this will identify structural problems and common problems such as subsidence or damp
RICS Building Survey:
The most comprehensive survey, this covers a full inspection and give professional advice on any repairs that may be required and the likely costs involved.
If the surveyor reports problems that need to be remedied, you could still decide to go ahead, using the survey findings to renegotiate the purchase price.
In Scotland, sellers must have a Home Report available for would-be purchasers, carried out by a qualified surveyor. New build, converted homes, or properties purchased under Right to Buy don’t have to have a Home Report. However, purchasers should still consider having a survey carried out.
Why your credit score matters
Mortgage lenders look carefully at how you manage your finances when assessing your mortgage application. If you want to qualify for a competitive mortgage rate, then you need to have a good credit rating. When a potential lender reviews your application, they’ll look at your credit report at one or more of the main credit reference agencies like Experian or Equifax.
Generally, the higher your credit score, the better your chances of getting a good mortgage product at a lower interest rate.
Simple steps like paying your utility bills and making existing loan repayments on time, increasing your monthly credit card repayments, registering on the Electoral Roll and not taking on additional borrowing before you make your mortgage application, can help improve your chances of having a good credit score.
It pays to check your credit score. If it’s not as good as it could be, take steps to improve it before you make your mortgage application.
What are the main stages in buying a property?
Here are the major milestones in the house buying process:
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Learn more about the various mortgage types that we offer.
Repayment
This is the most popular and widely-available option, where you make monthly repayments for an agreed period of time until you’ve paid back both the mortgage capital and the interest.
With a repayment mortgage, or capital repayment mortgage, to give it its full name, you pay back part of the mortgage capital and interest each month. At the outset, most of your monthly payments will comprise interest; over time, more of your monthly payment will be repaying the capital.
With a repayment mortgage, you are guaranteed to repay the full mortgage by the end of your mortgage term, provided you make your repayments in full each month.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Tracker Mortgages
The actual mortgage rate you pay will be a set interest rate above or below the rate tracked. When the rate tracked goes up, your mortgage rate will go up by the same amount. And it will come down when the rate tracked comes down.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Variable Rate
With this type of product there isn’t usually an early repayment charge with your lender, so you can move to another type of mortgage at any time and can potentially overpay your mortgage to pay it off faster and shorten the term. However, variable rate mortgages can potentially change if the Bank of England base rate rises or falls, making it harder to budget for your repayments. There can often be better and more cost-effective deals available in the marketplace.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Discount Rate
A discount rate is a type of variable rate mortgage where the interest rate is set at a discount below a rate of interest, typically the lender’s Standard Variable Rate (SVR) for an initial period of time, typically two or three years.
The obvious benefit here is that the rate is lower, so your repayments will be cheaper. However, if interest rates rise, you can expect your repayments to increase too. You also need to be aware that lenders have differing SVRs, so you may need help in working out which discount deal is most suitable and most cost-effective option for you.
Capped Rate
The interest rate is often higher than that available on other variable and fixed rate mortgages and the cap can be set quite high. However, it provides the certainty that your payments will not rise above a certain level.
A capped rate is normally only available for an introductory period, which can typically be from two to five years.
This type of mortgage may also have a minimum rate of interest that the lender will charge for a specified period. This is referred to as a ‘collar’.
Cashback Mortgage
The amount you receive is normally expressed as a percentage of the amount you have borrowed, although it can be a fixed amount. It’s important to be aware that this type of mortgage may not be offered at a competitive rate and might mean that you’ll be paying higher monthly payments as a result.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Use our Mortgage Calculator to find out your monthly mortgage payments including the repayment and interest payment. This is a guide to how much you’d pay each month. The exact amount will depend on the type of mortgage and the lender.
Why McGill Mortgages stand out...We can provide face-to-face and telephone advice for our customers.
We search thousands of mortgage deals to find the right one for our customers' individual circumstances and needs. Many of these deals cannot be found on the high street and are exclusive to us through our network - Mortgage Advice Bureau.
Because we play by the book we want to tell you that…
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
