BRIDGING LOANS
A bridging loan is used to cover shortfalls when buying one property before you have sold your next and is, in effect, a short term mortgage secured against your new property.
We have access to a variety of High Street and specialist lenders throughout the UK to help you achieve the best possible deal. Bridging loan rates are usually more expensive than a standard mortgage with additional risks to the lender. Interest can either be added at the end of the term of the loan or paid on a monthly basis, but loans do not normally extend beyond 12 months.
SECURED LOANS
Sometimes due to various reasons it is not appropriate or possible to remortgage a property or to obtain a further advance from your existing lender. In these instances a secured loan may be appropriate.
A secured loan will normally be more expensive than a standard mortgage as the lender is taking a Second Charge against the property. This means in the event you fail to maintain your mortgage payments your original mortgage will be paid from the sale proceeds of the property before the secured loan. Despite the additional cost of a secured loan, they can often be arranged faster than a remortgage.
SELF CERTIFICATION MORTGAGES
Self Certification (Self Cert) mortgages are designed for people that can afford a mortgage or loan, but have difficulty in proving some or all of their income, to the satisfaction of the lender. For instance people who regularly work short-term contracts or are self-employed, but have yet to produce their first set of accounts may find it difficult to get a conventional mortgage and so a self cert arrangement may be appropriate.
The main feature of a Self Cert mortgage or loan is that the borrower does not have provide proof of their income to the lender. However, they do have to complete a declaration stating their total earnings and confirm that this amount is correct. Despite the recent growth in Self Cert mortgages they are not always appropriate to everyone, as often the interest rates are higher than those available under a standard mortgage or loan.
As such we will always endeavour to establish whether or not it is possible to obtain a standard mortgage before suggesting that a client takes a self cert mortgage. It is important, however, that you remember that by declaring your income at a certain level if such a declaration should turn out to be inaccurate the mortgage lender does reserve the right to take action against you on grounds of fraud.
ADVERSE CREDIT
Unfortunately, many people can find themselves in the position of having adverse credit, such as arrears, missed payments and even County Court Judgements (CCJ’s).
Different lenders view adverse credit in different ways and we will always endeavour to obtain a standard mortgage or loan for a client wherever possible. Should it not be possible to obtain a standard mortgage then we have access to a variety of dedicated lenders who specialises in arranging mortgages and loans for clients with credit problems.
To speak to an Independent Mortgage Adviser free of charge and without obligation please contact us or telephone on 01376 529800.
Calculate your mortgage payments with the free FSA mortgage calculator.
< Back to Mortgages
