Call us today on 0808 2818824
or contact us here

Mortgages

Trusted, experienced and above all, friendly.

With over 20 years’ nationwide industry experience, we know that we get the best possible results for our customers time and again.

Mortgages
First Time Buyer
Home Mover
Self Build
Right to Buy
Remortgages
Second Charge
Buy to Let
Holiday Lets
HMOs

Equity Release

Making time for you

Equity Release

Why use us for your mortgage?

We do more than just compare rates

We can find you better products and better rates, but that’s not all. Through our long-term relationships with lenders and our unrivaled, first-hand experience with every type of mortgage, you can rest assured that we will get you the finance you need.

Have the best chance of completing your mortgage

We speak to lenders day in and day out – it’s our bread and butter. We know how to present unusual cases to mortgage lenders and what information they need to know. Self-employed, adverse credit or straight-forward remortgage, we can do it all.

Holding your hand at every step (if that's what you need, of course)

We will walk through every stage of the mortgage process with you, ensuring that you know what’s coming next. No nasty surprises and a robust process that you can rely on. 

ANSWERS

What is a Mortgage?

A mortgage is a type of loan designed to help you to buy property or land. You can use your property as security against the amount you borrow plus interest. When you apply for a mortgage you will need to put down a deposit towards the purchase of your new home. New Mortgage Finance offers a range of mortgages including a first time buyer mortgage, remortgage, home mover mortgage, buy to let mortgage, second charge mortgage, self build mortgage and equity release.

Who is a mortgage for?

Anyone with an income can apply for a mortgage: employee, self-employed or pension income. If you have had a bad credit history in the past, we go further to help you to buy your own home. 

Anyone can apply for a mortgage. Working with a broker will give you the best chance of success.

You will also need a deposit.

How do mortgages work?

When you apply for a mortgage you usually put down a minimum of a 10% deposit against the value of your property. There are some cases where you may only need a minimum of 5% deposit, depending on your specific circumstances. This means that you will have a 90-95% loan to value (LTV). Mortgage lenders usually offer up to 90% LTV mortgage products, the most competitive rates are available for products below 60% LTV.

There are various mortgage options , including opting for a fixed or variable rate, capital repayment or interest only, as well as deciding on the period that you wish the fixed or variable rate to apply. This is usually anything from 2-10 years.

Over the term of a repayment mortgage (usually between 5-35 years), you will gradually pay off the money that you owe the lender and once fully paid, you will own the property.

What are the different types of mortgages?

At New Mortgage Finance, we complete a very detailed Fact Find with each and every customer to ensure that we are recommending the correct mortgage for you, based on your unique preferences.

Capital Repayment

The vast majority of residential mortgages are capital repayment. This means that you are reducing your overall debt, with interest paid on the amount of the decreasing balance. At the end of the mortgage term, the balance will be £0, and the property will be debt free. A property with no mortgage secured against it is known as unencumbered.

Interest Only

Only the interest is paid on an interest only mortgage. This means that the overall debt balance does not decrease, you will owe the same amount at the end of the term as you did on day 1 of the loan. There are strict Financial Conduct Authority (FCA) rules around interest only mortgages and lenders will only accept your application if you can demonstrate a robust strategy for repaying the debt in full at the end of the mortgage term.

Interest Only and Capital Repayment (part interest & part repayment)

As the name suggests, part of the mortgage is on capital repayment and part of the mortgage is on interest only. The capital repayment portion of the mortgage will reduce, but as above, you will need to provide a robust strategy for repaying the interest only debt at the end of the mortgage term.

What are the different mortgage rates?

Based on you and your needs your New Mortgage Finance mortgage advisor will compare rates and lenders and recommend the mortgage rate which is most suitable for your specific circumstances.

Fixed Rate Mortgage

A fixed rate mortgage is a low risk mortgage, which provides peace of mind as it is a fixed monthly payment, which has been agreed at the beginning of the mortgage term. This means you can budget for an affordable monthly payment which will remain consistent.

With a fixed rate mortgage, the interest on your mortgage is fixed at a set interest rate for an agreed period of time, typically between two and 10 years. This type of mortgage could be good if you need to stick to a budget.

Once the fixed rate deal is over, you’ll be automatically switched to your mortgage provider’s standard variable rate (SVR) unless you choose to find a new deal.

Variable Rate Mortgage

A variable mortgage means that the rate is determined by the lender and your monthly payments and interest could go up or down at any time. This may mean it is more difficult to budget for your monthly outgoings, however you could also take advantage of the lender’s rates going down, which would reduce your monthly payments.

 

Tracker: This type of mortgage has an interest rate that’s tied to the Bank of England base rate. The mortgage changes with the base rate. Most trackers last two or five years, but you can get lifetime (also known as term) tracker mortgages.

Discount: Another type of variable mortgage, discount mortgages are different from trackers in that they’re not tied to the Bank of England base rate – they’re a bit more unpredictable. Instead, they’re linked to the lender’s standard variable rate (SVR), usually for between two and 10 years. With a discount mortgage, your monthly repayment could fall as well as rise.

Standard variable rate (SVR): This is the long-term rate of interest that mortgage lenders will be charged once their fixed or introductory discounted or tracker period ends. This is often much higher than the rate you could get during the initial deal term of a mortgage.

Combination of Fixed and Variable Rate Mortgage

Offset: Probably the most complicated option, offset mortgages link your savings to your mortgage debt.

With this type of mortgage you don’t earn interest on your savings – instead, your money is set against your mortgage so that you pay less interest on the debt. Available with fixed or variable rates, offsets are great for paying off your mortgage quickly.

They also offer a bonus benefit for those in the higher or top tax brackets, as you don’t pay tax on your savings.

Tracker Mortgage

Offset: Probably the most complicated option, offset mortgages link your savings to your mortgage debt.

With this type of mortgage you don’t earn interest on your savings – instead, your money is set against your mortgage so that you pay less interest on the debt. Available with fixed or variable rates, offsets are great for paying off your mortgage quickly.

They also offer a bonus benefit for those in the higher or top tax brackets, as you don’t pay tax on your savings.

Discount Mortgage

Offset: Probably the most complicated option, offset mortgages link your savings to your mortgage debt.

With this type of mortgage you don’t earn interest on your savings – instead, your money is set against your mortgage so that you pay less interest on the debt. Available with fixed or variable rates, offsets are great for paying off your mortgage quickly.

They also offer a bonus benefit for those in the higher or top tax brackets, as you don’t pay tax on your savings.

Lifetime Mortgage

Offset: Probably the most complicated option, offset mortgages link your savings to your mortgage debt.

With this type of mortgage you don’t earn interest on your savings – instead, your money is set against your mortgage so that you pay less interest on the debt. Available with fixed or variable rates, offsets are great for paying off your mortgage quickly.

They also offer a bonus benefit for those in the higher or top tax brackets, as you don’t pay tax on your savings.

I used Max and his team this year for a mortgage. I’m a first time buyer and Max and his team made everything so easy and would recommend the service they provided to everyone.

– L Marshall

Mortgage News