Moving home

Moving home can be a stressful yet exciting time with so much to consider and organise. By talking to The Mortgage Brain first you couldn’t be in better hands. Our team of trained advisers will source you the best deal depending on your needs, and you will be assigned your very own mortgage administrator who will be with you every step of the way, keeping you up to date with the progress of your application.

Deposit, how much will you need?
Generally you will need between 5% to 10% of the purchase price.
moving home
What are the different types of mortgage?

For buyers who want certainty that their mortgage will be paid for at the end of the mortgage term.  By repaying some of the interest you owe and some of the capital you’ve borrowed each month, at the end of the mortgage term, you will have paid back everything borrowed and you’ll own your home outright.

Payments go up and down in line with interest rates.  Interest rates can change even though the base rate hasn’t moved and likewise, the base rate may fall but the SVR rate stays the same.

You will pay the fixed payments for a guaranteed period, there are usually a choice of terms typically 2, to 5 years.  This rate will usually change to the standard variable rate (SVR) at the end of the set period. Normally, you will pay a fee for a fixed rate deal and if you change your mortgage product and or lender during the period in which you are tied, early repayment charges may apply.

Tracker mortgages move / track a nominated interest rate which is normally the Bank of England base rate.  If the base rate goes up your mortgage rate will go up the same amount and it will come down when the base rate comes down.

An interest only mortgage means you pay only the interest each month and repay the capital at the end of the mortgage term from savings or investments.  As there is a risk you may not have the funds to pay off the debt at the end of the term, lenders can insist that you demonstrate how you intend to repay the loan.

The interest rate is variable but will not go above an agreed limit for a guaranteed period.  This will usually change to the standard variable rate at the end of the period. You may have to pay an early repayment charge for repaying the mortgage early and there is likely to be an arrangement fee.

A discounted mortgage is a reduction on the lenders standard variable rate (SVR) for a set period, typically 2 to 5 years.  After the discount period ends, the rate will usually change to a standard variable rate.  This is good for buyers who want a low rate but can afford to pay more if the rates go up.  There is likely to be an arrangement fee payable to the lender and if you change your mortgage product and/or lender the period in which you are tied, early repayment charges may apply.

Flexible mortgages allow you to make over payments as well as making reduced payments or take holiday payments depending on certain conditions.  You could pay your mortgage off early and you may still incur interest charges during a payment holiday period.

Some lenders offer incentives to taking out a mortgage with them, you will receive a cashback after completion.  There is likely to be an arrangement fee payable to the lender and If you change your mortgage product and or lender during the period in which you are tied, early repayment charges may apply. This could particularly appeal to first time buyers or those who may need a lump sum to help with moving costs.

Offset mortgages are linked to a savings account and combine savings and mortgage together. You pay mortgage interest just on the difference between the two.

An example, a mortgage of £100,000 and savings of £5,000, the mortgage interest is calculated on £95,000 for that month.

The amount of interest you pay is reduced, however the mortgage rate is likely to be more expensive than on other deals. The more you offset, the quicker you’ll repay your mortgage.

When using your savings to reduce you mortgage interest you will not earn any interest on them.  However, the good news is you won’t pay tax either which is great for higher rate taxpayers.

Buy to let mortgages are designed for people who wish to buy property to let out. Variable and fixed rates are generally available. Any income you get from rent must be more then you have to pay for the mortgage payment. There is no guarantee that the rental income will be enough to pay the mortgage or that it will be possible to arrange continuous letting of the property.

What other cost are involved?
Mortgage arrangement
Valuation fees
Stamp duty
Solicitors fees
Survey cost
Removal costs
Buildings insurance & life cover
Find the best mortgage deals, try out our calculator today
What our happy customers say about
The Mortgage Brain
Great work, great mortgage deal

I would not go anywhere else for a mortgage deal. Enzo gets me the best deal every time I visit and provides a service that is second to none.

Steve, Gloucester

Excellent service!

Excellent service!
Couldn’t ask for.more. thank you so much !!

Mr&Mrs Martin

Well rounded company

Very informative personnel, happy to help and easy to communicate with. I would definitely recommend

Customer

Highly recommended

A very helpful, trustworthy and straight,-talking service that got us the result we wanted

First time buyer

Great communication and customer…

Great communication and customer service throughout the process.

Customer

Excellent!

Always there to help with helpful and honest advice, would recommend to anyone. We are first time buyers and they really helped with simplifying all the jargon and giving us great advice.

Chris M

Excellent service

Excellent service, highly recommended. Great communicators and very helpful for us as first-time buyers.

CJS
You can call one of our expert Mortgage advisers anytime on 0333 340 8888 or