Mortgage Advice FAQ in Leicester
How much can I borrow?
This amount you can borrow will depend on each person and is usually based on annual income. Other things will also be considered including credit rating, debts, outgoings and your deposit amount.
Do I need a large deposit?
The minimum deposit can be as low as 5%, or 0% in some rare cases. We would advise to save as much as possible though as a low deposit can mean higher repayments. Usually, the higher the deposit percentage, the lower the interest rate. This means your repayments should be lower.
How much will my repayments be?
The cost of your monthly mortgage repayments generally relates to the following:
- Amount borrowed
- Term of the mortgage in years
- The interest rate
What is the difference between a repayment mortgage and interest only mortgage?
A repayment mortgage means you will pay off the full mortgage amount by the end of the term, as long as your payments have been made. An interest only mortgage involves only paying the interest in your monthly payments. At the end of the term, an interest only mortgage means you will still owe the same amount that you initially borrowed.
Do I need insurance to cover my mortgage?
You will definitely need buildings and contents insurance for your home. Life cover is also recommended by us as well as payment protection. These policies are designed to pay your mortgage payments if you are off work due to an accident or sickness, or worse.
Can I move my mortgage from one lender to another?
Yes, we can help you move your mortgage from one company to another. Many of our clients will do this when they come to the end of their fixed term. These fixed terms are usually two, five or ten years. Often we can find a new product with a different interest rate which may lower your monthly payments.
Can I pay off a mortgage in full early?
Yes, you can pay off a mortgage early. Bear in mind you may have to pay an early repayment fee. Check with your current lender, or with us if we originally found the mortgage product for you.
Can I make mortgage overpayments?
Yes. You may be able to pay off your mortgage sooner. Again, check for repayment penalties.
Can I have more than one mortgage?
Usually you can only have one residential mortgage. You may be able to take out one or more buy to let mortgages as well. These are only accepted if you intend to rent those properties out to tenants.
What is a buy to let mortgage?
A buy to let mortgage is a product designed specifically for those wanting to buy a property then allow tenants to live in the property. These products generally have a slightly higher interest rate and the rental income must cover the monthly repayments. This is only some of the criteria and we urge you to speak to us to find out more.
How much deposit do I need for a buy to let mortgage?
Normally you will need a minimum of 25% deposit for a buy to let mortgage.
How do I find the right mortgage for me?
The obvious answer is to get in touch with Move and Mortgage! We’ll look at your current financial situation and find a product which suits you. You can contact us here. We are expert financial advisors in Leicester.