Getting a mortgage is one of the major decisions in a person’s life. Mortgages have long-term implications so it is important to consider all the aspects before applying for one. However, mortgages help people achieve their dreams of owning a home, refurbishing their current one, or starting to invest in real estate. You should discuss with your mortgage advisor Leeds to see which mortgage suits you best. Each of these mortgages requires different types of loans and eligibility criteria. If you want to make sure you get the best possible deal for your current situation you should apply for a mortgage through a mortgage broker Leeds. A reputable broker should be able to assist you in applying for different types of mortgages.
1. Move Into a New Home with Help to Buy Mortgage
If you want to move into a new home the best mortgage to consider is the Help To Buy scheme. This equity loan is designed for people who have never owned a property before and would like to purchase a new one with the help of a mortgage. There are many benefits to this type of mortgage. First of all, since it is aimed specifically at people who have never owned a property before, it comes with certain benefits. These benefits are reflected by the way you repay this type of loan. You will start paying interest only five years after you start your mortgage. This is a huge help for new families and young people who still have to settle financially.
The interest rate will only apply from the sixth year onwards. This interest rate will start from only 1.75% with an increment each year. Furthermore, the initial deposit you will have to provide is lower than the deposit needed for other types of mortgages. Depending on your financial situation this initial deposit might get as low as 5%. A mortgage advisor Leeds can give you an estimate of what you can expect when applying for this loan. There are also price caps for the new house you choose to purchase with the help of this loan. Depending on the area, the house price caps can range from £186,100 and go up to £600,000 for the London area.
2. Mortgage Advisor Leeds Can Help You with Right to Buy Mortgage
If you already live in a property as a tenant and would like to purchase the property then a Right To Buy mortgage might be the solution for you. Right To Buy mortgages are aimed at individuals who have at least three years of tenancy at the property they wish to purchase. To be eligible for this type of mortgage, you should have a decent annual income and a decent credit score. However, if you apply with the help of a mortgage advisor Leeds, you can expect to get the mortgage even without a perfect credit score. A mortgage advisor can also help you with the paperwork and guidance through the whole application process.
The Right To Buy mortgage is designed to offer a purchase discount for those eligible. If you’ve lived in a house you will start from a 35% discount for a three years tenancy. The discount can go as high as 70%. For people who live in flats, the discount starts at 50% for a three years tenancy and can get up to 70%. This discount can provide financial relief from the burden of paying a large sum of money to own your property. To maximize your chances of success you should apply with the help of a mortgage broker Leeds to have access to better deals and lower interest rates.
3. Get A Buy to Let Mortgage Through Your Mortgage Broker Leeds
If you’re keen on investing in real estate rather than buying a property to live in you should talk to your mortgage broker Leeds about getting a Buy To Let Mortgage. BTL mortgages are aimed at individuals who want to purchase a property and rent it out to tenants to make a profit. It is important to know that this should not be your first home because you will not be allowed to live on the property. Another important aspect is to figure out if the property is profitable in the long run. Investing in real estate might be risky and without a thorough analysis of the property you might lose more money than you make. Your lender will also analyze the profitability to ensure you will make more money than you owe monthly. If you don’t meet this requirement you are less likely to receive a loan.
If you want to get a second opinion on the property you intend to buy you should talk to a mortgage advisor Leeds. If you’ve decided to move forward with your mortgage you should ensure that you meet the eligibility criteria for this type of mortgage. Your annual income should be at least £25,000 and your credit score should be very good. The lender will closely analyze these aspects along with the property’s profitability and decide whether you pose a risk or not. You should be able to deposit at least 20% of the property’s value before moving forward with your mortgage. The deposit can be even bigger if your credit score or annual income is not satisfying enough for the lender. Working with a mortgage broker can help lower these rates and increase your chances of success.
With so many different mortgages to apply for, one thing is certain: you should always talk to a mortgage advisor Leeds if you want to apply for either of them. Having guidance through the whole mortgage process not only gives you relief from the mental pressure but you can always ask questions to an expert. If you want to have access to the best deals and improve your chances of getting the perfect mortgage for your needs, you should always apply through a mortgage broker Leeds. Not only will you have somebody to negotiate on your behalf, but many lenders don’t even consider talking directly to people looking to get a mortgage.