If you are looking for a mortgage in Cambridge, you may find it turns up a number of different options. So making sure you get the most suitable mortgage for your own unique needs isn’t always straightforward and sometimes assistance is necessary.
Different types of mortgages
To begin with, there are numerous forms of mortgage in the UK and demand remains high.
At the top level of differentiation, they may be designed for very different markets such as buy to let, standard residential, commercial properties, investment properties or properties that may be a mixture of several of the above.
Then there are the complexities of the different types of mortgages in terms of how they are calculated and eventually repaid, their terms, the interest rates and whether those same rates are fixed or variable etc.
Plus, your circumstances may mean you require a more specialist type of lending, such as a self-employed mortgage, or a first time buyer mortgage in Cambridge.
A Cambridge mortgage advisor will be able to help you to understand all these options and their implications.
Standard mortgage applications
For many looking for a typical residential mortgage, the basic concepts of the application process and the deal on the table are not necessarily overly complex.
However, even in the simplest of scenarios, there can be complications which mean that specialist advice might be highly advisable.
Taking a single example, the subject of the loan to value (LTV). LTV essentially means the maximum percentage of the property’s valuation that a mortgage provider will be willing to advance.
If a given provider will only offer a maximum LTV of 80% and you are looking at a property valued at £500,000 then the most you will be able to borrow from that mortgage provider is £400,000. You will need to find the remaining £100,000 from your own financial resources by way of the difference or deposit as it is commonly called.
The LTV exists to limit the risk exposure for the mortgage provider – but not all companies apply the same criteria. Some may offer a higher or lower LTV than others in the same marketplace.
A specialist adviser should be able to help you to find those providers whose views here match your requirements.
If you are seeking a mortgage and have a particularly troubled credit history, then you may find it more difficult to obtain finance and possibly more expensive when you do.
Someone acting on your behalf may know those providers who are more flexible in this respect than others.
A Cambridge mortgage advisor might be able to assist you in finding solutions whereby you can free up some of the equity in your property for your own purposes.
In other situations, your existing mortgage deal may simply be no longer competitive when viewed against other products that have arrived on the market since you took out your initial loan. In these circumstances, changing your mortgage provider might offer real benefits – providing you identify suitable deals.
Buy to let mortgages
This area of the economy, including holiday homes, is still very active and offers opportunities but few would dispute that finding a suitable mortgage is not quite as easy as it was just a few short years ago.
Investment properties and refurbishments
Some mortgage providers are less than enthusiastic about mortgage applications relating to investment properties or those which require substantial building work in order to position them for either a sale or letting.
If they are not particularly interested in this sector of the mortgage marketplace, you may be wasting your time applying to them, as they will either decline or perhaps intentionally price themselves out of serious consideration.
Market intelligence, by way of knowing who is providing this type of mortgage and at what rates, is something that mortgage consultants may have at their fingertips but the typical private individual won’t.
For all these reasons, using a Cambridge mortgage advisor, such as ourselves at Fogg Financial, might be highly beneficial.