It is not surprising that many prospective home buyers, landlords, and those looking to raise capital against an existing property look towards a professional mortgage broker for guidance and mortgage advice regarding their requirements. The UK mortgage market is a large, complex, and very fluid environment within which many changes happen daily. These changes could be as simple as product rate changes or more intricate changes to lending policy and criteria.
Here at Caboodle Finance, we don’t just ‘sort out a mortgage’! We take pride in the work we do and ensure the advice we provide is consistent with the needs and requirements of the individual customers we are working with. In fact, as mortgage brokers we are often the central point of contact for third parties such as estate agents and solicitors.
The whole process starts for a mortgage advisor/broker from the initial contact with the customer, and one of the most important parts of the process is the “fact find” as it is the information gathered at this stage that will ultimately shape the recommendation and mortgage advice provided.
The fact find process is not just about collecting information, it is also about understanding needs and preferences, establishing goals and objectives, and getting an insight into any short to medium term future plans the customers may have.
However, there are many factors to consider when identifying the best solution that meets most if not all the customer needs and requirements. These will include but are not always limited to:
Quite often borrowers are looking to raise the maximum mortgage possible based on their circumstances and income, and as each lender has different rules, criteria, and affordability assessment methods some are more prominent on the shortlist. It can often be the case that the lender offering the lowest interest rate may not be the one who will offer the largest or target mortgage amount.
Again, each mortgage lender will have varying rules on how they will handle and assess different types and sources of income. The most common sources of income that differentiate which mortgage lender may be the most appropriate to use for each customer will be basic salary, variable overtime and bonus income, car allowances, shift allowances, income from self-employed sole traders, income from self-employed limited company directors, state benefits and pension income. Other less common sources could also include income from investments, foreign currency income and income from buy to let investment properties.
Many borrowers choose to have a fixed interest rate so that they can budget accordingly and to avoid any potential changes in the future. However, depending on their future plans how long should the rate be fixed for? This decision will primarily be based on the information gathered at the fact find stage and will include factors based on future plans of the customer and any expected changes in circumstances such as changes to employment, plans to move house in the short term and even plans to start or grow a family. The recommendation of the most appropriate product is then key to making sure the customer is not left unnecessarily tied to a mortgage with large early repayment charges to exit.
Credit history is always a factor, and in some instances can be a significant one if adverse information has been registered recently. Employment history, job/business stability and address history are amongst some of the other influencing factors.
Traditionally mortgages were taken out over a maximum of 25 years, but in the modern mortgage market terms are available for as long as 40 years. The decision regarding the term of the mortgage is often driven by the available budget, but of course, not all lenders offer terms this long, or if they do many will have a maximum age at the end of the mortgage which will naturally restrict the length of mortgage available. As such, age is always a key factor when obtaining a mortgage.
Here at Caboodle Finance, we pride ourselves on our professional and very comprehensive mortgage advice. As your expert mortgage broker, we can really help to eliminate many of the potential roadblocks that can sometimes arise in the application process. Furthermore, a mortgage offer is not the end of our role as your mortgage broker as we will oversee the remainder of the process all the way through to completion.
And of course, we can also assist you with and advise on related and important stuff like home insurance and personal protection insurance too!
Finally, with all that in mind, if you would like to read about what some of our clients think of the first-class personal service they have received from us, please check out our testimonials page.
The overall cost for comparison is 3.7% APRC. The actual rate available will depend upon your circumstances. Please ask for a personalised illustration.
Representative example: A capital and interest mortgage of £131,500 payable over 25 years initially on a fixed rate of 2.99% for 5 years and then a variable tracker rate at 3.49% above the Bank Base Rate (currently 0.25%) for the remaining term would require 60 monthly payments of £625.10 and 240 monthly payments of £668.70. The total amount payable would be £198,109 made up of the loan amount (£131,500), interest (£64,900), product fee (£999), broker fee (£595), final repayment charge (£80) & completion fee (£35). The overall cost for comparison is 3.7% APRC representative.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114