Professional Mortgage Advice

Professional Mortgage AdviceA mortgage is a means by which a "borrower" receives a loan from a "lender", normally a building society or bank, in order to purchase a property. The loan is repaid over a set number of years (often 25 years but this might vary) in monthly installments. The purchased place become collateral for the loan. If case buyer fails to make their repayments, then the lender would be entitled to repossess the property.

Over the course of your loan, the interest rate paid on on your loan will vary meaning your monthly repayments would also vary. It is important to allow for this when calculating the amount you can afford to borrow. Amongst other remortgage affecting factors, the rate of interest is affected by the performance of the British economy and therefore difficult to predict. For this reason, lenders have introduced a number of different schemes, some of which offer some guarantees to the amount of interest you will pay. These are outlined below.

The interest rate on your mortgage will vary, unrestricted, up and down over the period of your loan. The lender will guarantee you a set rate of interest on your loan, normally for a specified number of years. Once this period has expired, your interest rate will revert to the normal variable interest rate. The lender will guarantee that your rate of interest will not rise above a set interest rate. However, if the normal interest rates fall, the rate of interest, the lender charges you, may also fall.

The new partnership, which was announced at the Mortgage Business Expo event in London, will greatly benefit the broad range of lenders at Bright Finance, allowing them to find loans to suit a wide variety of customer needs with competitive rates of interest.

The lender can guarantee a discounted amount of anything, but normally up to five per cent, off your interest rate. This means the interest you pay will still vary up or down but at a lower rate than the general interest rate. Normally, this is for a set number of years. Once this period has expired, your mortgage will revert to the normal variable interest rate.

MMR won't work for high net worth clients
The Financial Services Authority recognised this for the first time in its December Mortgage Market Review paper.

Before getting a business loan quote, it is best to ask yourself:

  • Do I need more money to help with cash flow?
    If the answer is yes, then factoring is an option that is probably better suited to your needs. Factoring allows you to get cash advances on your invoices allowing you to unlock the tied-up money your company processes.