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A Mortgage is simply a loan made to purchase property or land.
These loans are usually made of 25 years but can be longer or shorter than this.
A mortgage generally has a relatively low interest rate as it is secured against the property or land. In the event of non payment of the loan the bank can take back the property.
A mortgage is often the biggest financial commitment of a person’s life. These are the top 3 questions first time buyers often ask us – and our answers – so you can get started.
Whether you’ve found your dream home or are just starting your search, you need to know how much you can afford. Our calculator gives you a rough idea of the amount you can borrow, the deposit you’ll need, and the monthly payments you’ll be making. The mortgage product you choose will change these numbers dramatically, so exploring your options and making the right decision is crucial.
1) Making Choices
Choosing a property
Your criteria might include having a good school nearby, local transport links and convenient shops or restaurants.
Choosing a mortgage
Praxis will manage your entire application, taking you through the whole process from start to finish.
Call us on 02037401113 or firstname.lastname@example.org
Once you’ve chosen, you will need to make an initial application with the lender, who will invite you for an interview and start the process of credit scoring by reviewing your supporting documentation (e.g. recent pay slips, bank statements, proof of identity.) If your credit score is deemed sufficient, you are ready to move on to surveying the property.
Average time: 3 Weeks. Average cost: 0.
You will need to provide a deposit and more attractive mortgage deals can be obtained with larger deposits. Although the deposit does not need to be paid until exchange of contracts, you will probably need to prove that you have these funds at the outset, to show the lender you are not borrowing the money from elsewhere and therefore increasing your monthly outgoings. When considering the level of deposit you should bear in mind the other costs associated with buying a property, such as valuation costs, solicitor’s fees and potentially stamp duty.
Average cost: from 5% of purchase price upwards. So for a £250,000 property, you would need £12,500 for a 5% deposit
3) Making an Offer
Armed with the knowledge of how much you can borrow, it is easier to select a property when you have a price range to work within. Once you have found somewhere, you need to make a formal offer to the vendor confirming the price you are willing to pay (this is usually carried out via an estate agent). If the vendor accepts your offer, you can move on to the next stage.
Average time: 2-4 weeks for an offer from lender, provided you have submitted all required information
We save you the hassle
Our highly trained, professional advisers work with you every step of the way to make the mortgage process simple, saving you time and effort on one of life’s biggest decisions.
Going to a bank or estate agent limits your options and leaves you at risk of getting a bad deal. We have access to hundreds of products across the whole mortgage market and can find you the ideal product for your needs.
We can save you money
By hand-picking the best mortgage and negotiating the best rates on your behalf, we can save you up to tens of thousands throughout the term of your mortgage.