Nelson-Singleton Solicitors knows how important it is to understand the mortgage that you're looking to take out, ensuring that you are getting the best mortgage to suit your individual needs. Our comprehensive legal services are available throughout Dromore, Banbridge, Market Hill, Lisburn, Hillsborough, Moira, Lurgan, Craigavon, Portadown, County Armagh, County Down, Armagh and the surrounding areas.
There are a large number of mortgage lenders offering various mortgage packages, often at different rates. There are mortgages with variable rates which are set according to bank rates and there are mortgages which have fixed rates of interest. If you choose a fixed rate then you may well find that there is a penalty if you withdraw early from the mortgage agreement.
In every case when you receive an offer of loan from a lender you should study it carefully and speak to your solicitor to ensure that you understand it. If the loan is not repaid the lender has the right to take the property from you and sell it. This right may only be exercised in certain circumstances and if you, at any time in the future, have difficulty repaying the lender you should consult your solicitor immediately. Your lender will require a surveyor to value the property. Please note that unless you ask for a full condition report, you will normally only receive a report that will only indicate an approximate value of the property.
If you borrow more than 75% of the value then the lender usually requires a mortgage indemnity policy. This is a one-off charge for an insurance policy to protect the lender in the event that they have to repossess the property and sell it for less than the amount of mortgage outstanding. The policy is intended to protect the lender only and will not protect you from losing your home.
It is easy to get confused about the total cost of your mortgage payment per month and you should always insist on a written quotation.
A repayment mortgage involves a single monthly payment to the lender, at the end of the term the loan will be totally repaid. In the early years the amount outstanding will not reduce much, but this will change as the year's progress.
An endowment mortgage involves a payment of interest only each month. In addition an endowment policy is taken out, this will repay the mortgage in the event of death and will provide a savings plan so that at the end of the mortgage term there should be sufficient to pay off the mortgage and provide some additional funds to you. However, this is not always guaranteed.
There are other types of savings plans available and you should talk to the experienced team at Nelson-Singleton Solicitors today, so that you are aware of all the pros and cons of the different mortgages available.
Transferring your mortgage to another lender has now become very popular as the cost of borrowing falls. With banks and building societies competing for your business, people are taking advantage of the low interest rates currently on offer. Plus many banks and building societies now offer cash back offers on completion of the re-mortgage, this cash back can often help to cover the cost of any legal fees.
You may also be looking to re-mortgaging if you wish to reschedule your existing loans into one monthly payment, wanting to extend or renovate your home, or you want to take advantage of increased house prices by withdrawing equity from your home. To find out more about our re-mortgaging services contact us today to book your free initial consultation.