Ipswich Financial Adviser

Posts Tagged ‘mortgage’

If you are a First Time Buyer, Re-mortgaging or a Home mover you need to make sure you are aware of any hidden costs that may be payable when you apply for your mortgage.

Lenders, for a long time, have had arrangement fees; usually any thing from a few hundred pounds up to 3% of the mortgage amount. However, I am now seeing completion fees being charged, up front, as well. These are usually in the region of £250. This is something to bear in mind when comparing different lenders.

Also,  the arrangement fee needs to be looked at VERY carefully. This is because, you may get a very competitive interest rate with a large arrangement fee attached to it and this can look very appealing. There is a sting in the tail though, that if your mortgage is not large (typically in excess of £250,000) then you will actually being paying more for your mortgage overall with the high arrangement fee product. The better option would be to take a slightly higher interest rate product with a lower arrangement fee. This will mean that  overall, you will actually pay less for your mortgage. Again, this is a very important point to check out and compare when looking for your new mortgage product.

As can be seen, there are ways that you could end up paying a lot more for your mortgage without realising it. Talk to the experts at Thompson Financial Consulting and we will ensure you get the right mortgage deal.

Your home may be repossessed if you do not keep up repayments on your mortgage.

One of the charges that mortgage companies add onto their mortgage products is the redemption penalty. This is charged if you pay off your mortgage or switch to another product or provider during the initial period of time your interest rate is set up over.

You may not think that this is important as you may feel that you would not be in a position to want to change your mortgage. However, you never know what may be around the next corner and you may want to change your mortgage for some reason.

You want to ensure that if you do have a redemption penalty than you are as certain as you can be that you will not be changing your mortgage. If you do change the mortgage product, it can be a very expensive cost to pay the redemption penalty.

You need to take all your financial circumstances and potential future financial needs into account to ensure you get the right mortgage product for you now, as well as into the future.

Our advice would be to get professional mortgage advice to ensure you get the right mortgage product for you. Please contact Thompson Financial Consulting and we will be happy to help you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

When looking at and setting up a mortgage you not only need to ensure the monthly ongoing cost is affordable but also that you can afford all the setting up costs.

These are not just related to the mortgage e.g.  arrangement fees or valuation fees, you also need to consider solicitors fees, stamp duty fees or the cost of a survey on the property if required.

All these costs can mount up and if you have not considered all of them you could find yourself short of money before you have even moved into your new home.

Always ensure you ask the professionals you are using to break down the cost so you know exactly what you have to pay. You can then budget and ensure all the cost are taken into account. In that way you can plan the mortgage and house purchase without any unnecessary worry about money.

Please feel free to contact Thompson Financial Consulting about any mortgage advice you require. We will ensure you get all the information and advice you need.

Your home may be repossessed if you do not keep up repayments on your mortgage.

In a recent survey of the under 40’s by Standard Life it was found that most people questioned thought that mortgages were much more flexible than a pension, because you can overpay, underpay, add lump sums or take a payment holiday with a mortgage. 

What you may not be aware of, is with modern pensions, they offer this flexibility and more – but as an industry we have done a really bad job in telling people about it.

With modern pensions you are in control as to the amounts of money you want to pay in regularly, when you want to pay them in, how often you want to pay, to be able to make adhoc payments or even stop payments for a while. This can all be done without any penalties or extra fees and without changing your original pension policy, so you can keep your policy running no matter what your situation is.

All these benefits make pension planning much easier and more affordable.  Get Thompson Financial Consulting to check out your pension to see how flexible it is. You may be able to do more with your pension than you first thought.

Your home may be repossessed if you do not keep up repayments on your mortgage.

When ever you are looking at your mortgage rate, be that when you are taking a new mortgage or reviewing your existing one, you always need to consider how much flexibility you want within your mortgage product in the future.

Over the coming years do you need to;

• Borrow additional money in the future.
• Repay lump sums or increase your  monthly contributions.
• Move home.
• Changing your mortgage rate if required.
• Offset future savings against the mortgage balance.

Any of the above could mean that you need flexibility within your mortgage product. Has this been considered or thought about when you take out the mortgage product? It could be that you need to change lenders and mortgage product to get the flexibility you need. If you don’t get this right it can be very expensive to exit a mortgage deal.

The best option is to use professional advisers so that all the questions and issues can be evaluated and the correct mortgage product chosen.

Please contact us at Thompson Financial Consulting and we will be happy to give you the right mortgage advise for you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

When you are looking for the best mortgage deal, it is often forgotten that you need to look at the Standard Variable Rate that you will go on to once your initial interest rate deal comes to an end.

As it is more difficult to find mortgage deals at the present time, many people are remaining on their lenders Standard Variable Rate and so it is important to make sure that this is as competitive as possible.

Lenders Standard Variable Rate can range from 2.5% to 5.5%, with others higher depending on how good your credit rating is.

With such a large difference in this type of rate, it is important to make sure this is reviewed at the time of taking out your mortgage.  It is always important to check all the terms of a mortgage, not just the headline rate that you will pay to start with.

If you need any help or advice in organising the best mortgage for your circumstances, then please contact Thompson Financial Consulting and we will be happy to help.

Your home may be repossessed if you do not keep up repayments on your mortgage.

It struck me the other day, after seeing some potential new clients to help them with a house purchase, that many people may not even calculate what an affordable mortgage will be on their new home.

Would you find the house you wanted and then see if a mortgage is affordable to you long term on that property? Well it surprised me that there are people that will do things this way round. The problem is that once your heart is set on the home you want, people will quite happily ignore the cost of the mortgage and consider it affordable, even though it may not, and all sense goes out of the window. With the clients I saw, this leads to a difficult conversation with them to help them appreciate what they are entering into and that the mortgage may not be affordable to them.

In this current climate, you want to know exactly what size mortgage is affordable to you and do a realistic budget planner to ensure all your costs have been taken into account.  In that way you can be as certain as possible that you have the right level of borrow and so the right monthly costs.

If you require any help with organising or budgeting for a mortgage then please contact us at Thompson Financial Consulting.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There can be some very attractive interest rates available for mortgages at the present time, however, watch out for a possible sting in the tail!

When comparing mortgages you not only need to consider the interest rate that you will be charged, but also the other fees that are attached to it. There are arrangement/booking fees, legal fees, valuation fees and telegraphic transfer fees. You must consider all these as a total cost to see if the interest rate on offer is actually as good as it looks.

It can often be the case that it is better to pay a slightly higher interest rate, which comes with lower fees, than to go for the cheapest interest rate  and pay the higher setting up costs. When comparing the costs OVERALL the higher interest rate could be CHEAPER.

Without an accurate and professional review of all products, interest rates, options and charges on mortgages, you could pay more for your mortgage than you need to.

If you require any help or advice on mortgages then please feel free to contact us at Thompson Financial Consulting

Your home may be repossessed if you do not keep up repayments as your mortgage.

You never want a mortgage, it’s just a means to an end, you want your dream home and the mortgage is the means to achieve that. 

A lot of the time people will find the home they want and then try and find the mortgage to achieve the home purchase, often without luck. The issue is that at the present time the credit crunch has made lenders reluctance to lend people money.

I would advise my clients to get their mortgage organised before they start looking for properties. By doing that they’ll know how much they have to spend and this will put them in a much stronger position when they make offers on a property they want.

If you need any help or advice about mortgages then please contact Thompson Financial Consulting

Your home may be repossessed if you do not keep up repayments as your mortgage.

Well you have now. These products allow people who are over the age of 55 to withdrawal money from their property and not have to make repayments to the money they have borrowed. The capital and interest that is owed, usually, rolls  up overtime and is repaid from the value of the house in the future. You have the right to remain resident in your home until you either die or go into long term care.

You can have a lump sum of money, take a regular income or a combination of these and either roll the interest up or pay the interest every month so that the debt does not increase.

Equity Release can be very flexible and can be used for many different things. Some of the popular reasons are often to help to increase peoples standard of living in retirement, for a new car, holidays or repay a mortgage or other debts.

Equity Release is fully regulated by the Financial Services Authority. It must be stressed that Equity Release is not for everyone, however, there are many people that might find it very useful.

If you would like further information on Equity Release please feel free to contact Thompson Financial Consulting.

*Equity Release refers to Home Reversion and Life Time Mortgages. To understand the features and the risks ask for a personalised illustration.