Adverse / Bad Credit Mortgages or Re-mortgages

100% Mortgages

YES! – 100% Mortgages mean just that. You will receive a loan for the full purchase price of the property.

YES! – 125% Mortgages mean just that. You will receive a loan for the full purchase price of the property plus an amount over and above.

You will also find that as well as having to pay a higher interest rate, you may be charged for a bigger mortgage indemnity guarantee (MIG) premium than if 

you had put some of your own cash towards the purchase price.

Buy to let mortgages

Buy to let mortgages allow you to invest in a property and then rent it out, without being penalized by mortgage surcharges, or pay commercial rates of interest.  The amount you can borrow is not determined by personal income, but by the potential rental income of the property.

Capped rate mortgages

Capped rate mortgages have a fixed ceiling on the interest rate for a period of time, above which your rate will not be allowed to go.  But if the base rate falls, your rate will fall with it.

Cash back mortgages

YES! - Cash back mortgages mean just that. Shortly after taking out your cash back mortgage you will receive a cash lump sum, normally about 5% of the mortgage agreed. This lump sum of money may be attractive to first time buyers who need extra cash for home improvements or furniture.

Council Right To Buy mortgages

If you are a council tenant and want to buy your council home then this is the mortgage for you.  Right to Buy gives you the 'right to buy' your council home at a discounted price below its true market value.  The longer you have been a tenant, the bigger the discount.  If you buy your home, you can sell it at any time - but if you do this within three or five years you will have to pay back the discount.

Discounted rate mortgages

With a discounted rate mortgage your payments are reduced in the early years by setting your interest rate at a few percent below the lender’s Standard Variable Rate.  Your interest payments may still move up and down, but the difference between your rate and the standard variable rate remains constant. 

First time buyer mortgages

Deciding upon your first time buyer mortgage is a major undertaking and it’s only natural when you’re a first time home buyer to be more concerned with the size of house rather than studying the small print on the first time buyer mortgage agreement.  But the wrong first time buyer mortgage can cost you more money than it should and independent impartial advice is essential.

Fixed rate mortgages

With fixed rate mortgages your interest payments are fixed at a specified level for the first few years. When your fixed rate period expires, your payments change to match the lender’s standard variable rate.

Flexible mortgages

Flexible mortgages offer you financial flexibility that adapts to fit your circumstances.  So you can take payment holidays, overpay, borrow back money, underpay and draw down money. These are just some of the benefits.

Some flexible mortgages double up as current accounts - your salary is paid in monthly and you effectively pay off an enormous overdraft.

Interest only mortgages

Interest only mortgages It is not a condition, but the borrower is expected to have some investment or other means of paying the outstanding loan when the mortgage term ends. If the performance of the investment depends on the stock market and the market is buoyant then borrowers stand to benefit, which isn't the case with anyone who has taken out a repayment mortgage.   However, if the economy is in decline, then there's a very real chance that the investment won't meet the final mortgage settlement.

Offset mortgages

Offset mortgages link both your savings and mortgage together, allowing you to offset any savings you hold against your mortgage balance which reduce the amount on which you pay interest.  

Remortgages

Remortgaging is replacing your existing mortgage with a new mortgage on a property in which the borrower already lives.  The process involves switching from one mortgage lender to another for a new mortgage loan at a better rate, saving you £££’s per month or to raise further capital.  

Repayment mortgages

Repayment mortgages are regarded as the safest option, hence their appeal to the more cautious investor. They are certainly much easier to understand and you should have no trouble working out your monthly incomings and outgoings.  Your monthly repayments cover both house value and interest on the loan.

Self Certification mortgages

With self certification mortgages you will not be required by the lender to provide physical proof of your income in the form of accounts or pay slips. If you have income you can't prove whether employed or self employed you declare that income on the application form and sign to say it is correct.

With some lenders you simply sign to say you can afford the mortgage.  With true self certification no checks will be made on your income.

Tracker Mortgages

The interest rate you pay tracks (follows) the Bank of England base rate. Rates can still go up and down, but will always be closely in line with the base rate, so you will know how your mortgage payments may change.

A Tracker mortgage is taken out for a set period of time and if you repay the loan in full or part, or transfer it to another mortgage before this period is over, you may have to pay early repayment charges.

Variable Mortgages

Your home is at risk if you do not keep up with payments on your mortgage or other loans secured on it.