Mortgage Advice, Mortgage Help & Mortgage Facts
In the last few years, mortgage lenders have been looking at affordability, rather than just salary multiples. A mortgage lender will look at all your regular incomings and outgoings and calculate how much they are prepared to lend. You may be able to get a bigger mortgage than you initially thought.
First of all, buying a house or flat is an expensive business so it's a good idea to work out whether you can afford to borrow enough to get on the local property ladder in the first place. We have provided a mortgage calculator for you to check, but for more precise mortgage information please contact us with your mortgage or remortgage requirements.
Salary Multiples
Most mortgage lenders will offer you between three and a half to five times your gross salary. Some lenders will offer you more but you will pay a higher rate of interest. If you're buying with a spouse, partner or friend they'll add on the amount of his or her annual salary in addition to the amount they're prepared to lend you, lower multiple of your joint salaries. Some mortgage lenders will also take in to account additional income from bonuses or commission, Investment income, large town allowance, maintenance payments, car allowance and state benefits.
Deposits
Most mortgage lenders require a 5% deposit on purchase of a new property however we do have a mortgages available between 100% &125% of the property value. These mortgages are not suitable for everyone. If you would like more information on these types of mortgages please contact us. The larger the deposit you put down, the more most lenders will offer at better rates of interest.
Other costs
Please be aware of the associated costs in purchasing your new home. The main costs associated with buying your new home will be a valuation fee charged by the lender, legal fees, and stamp duty.
Stamp Duty
Stamp duty is payable to the treasury whenever you buy a house valued at over £125,000. Its a tax you pay for the privilege of buying your own home!
It works on a sliding scale like this:
If the value of the property is under £125,000 no stamp duty is payable. Between £125,001 and £250,000 you pay 1% of the purchase price not the mortgage amount. On properties between £250,001 and £500,000 pay 3 % and if you are purchasing above £500,001 stamp duty is payable at 4%.
Mortgage Advice
We specialise in all types of mortgage and remortgage, arranging a mortgage or remortgage can be difficult at the best of times. Here at J P Financial we take the stress out of arranging a new mortgage or remortgage for you , not only do we find you a competitive rate but we liaise between valuer’s, solicitors and the new lender on your behalf so you can get on with your life knowing we are doing all the work for you. We can also help you when others have said no.
If you would like more information on a mortgage, remortgage, purchasing a new home or Buy to Let mortgage please contact us with your requirements.