A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Elevate is a trusted mortgage broker based in Beckenham and Bromley with a long line of success stories, working with clients across London. We offer a selection of services to ensure our clients get the most out of their hard-earned money. One of our most popular services is mortgage advice.
Our experienced team is well-equipped to analyse your personal circumstances and the mortgages available to you. We will provide clarity on confusing terms, explain which types of mortgages are suitable for your needs – and we can find the best relevant deals across the whole of the market.
The Different Types of Mortgages
Trying to make sense of different mortgage types can be confusing. It is one aspect of the mortgage journey that causes the most stress. Here are some of the most common types of mortgages in the UK:
Standard Variable Rate Mortgage: With this type of mortgage, the interest rate can go up or down, affecting your monthly mortgage payments.
Tracker Mortgage: The interest rate on this mortgage tracks the Bank of England's base rate, which means your monthly mortgage payments can go up or down.
Fixed-rate Mortgage: This mortgage offers a fixed interest rate for a set period, usually between two and five years. Your monthly mortgage payments will stay the same during this period, which can help with budgeting.
Offset Mortgage: With this type of mortgage, you can link your savings or current account to your mortgage. This can help reduce the interest you pay on your mortgage.
The most advantageous mortgage for you will depend on your circumstances and long-term plans. Unfortunately, mortgages never come with a one-size-fits-all approach, and that’s why utilising mortgage advice can be so valuable.
Why Choose Elevate for Your Mortgage Search
Elevate is an established mortgage advisory firm in London and regulated by the Financial Conduct Authority (FCA). We abide by strict codes of practice and always go the extra mile to ensure our clients get the best mortgage deals available to them.
Experience, efficiency and transparent service have made Elevate a trusted mortgage advice provider. We are not partnered with banks or specific mortgage lenders and promise to search the whole of the market for the best mortgage deal for you. This means you won’t miss out on deals due to any undisclosed relationships with lenders.
Mortgage Affordability and Suitability Protection
Part of our mortgage advice service is to ensure that clients only agree to mortgages they are suitable for and can afford. We comply with best practices by ensuring every client commits to financial agreements that are in their best interest and are unlikely to cause them financial problems. Our experienced team will assess your financial situation and ensure that you are not overstretching yourself. We believe in looking out for you!
Your Mortgage FAQs Answered
How do deposits work?
A mortgage deposit is the initial sum of money you put down on a property purchase. Lenders will require a certain amount of deposit based on the value of the home you want to buy. The average deposit is around 20% of the overall value. Putting down a bigger deposit will help reduce the size of your mortgage and possibly your monthly repayments.
What are mortgage rates?
Mortgage rates are the rate of interest you will pay on top of the amount you borrow to buy a property. Mortgage rates vary depending on the type of mortgage and the lender.
What is loan to value?
A loan-to-value is a ratio that expresses the amount of money borrowed against the value of an asset. A good loan-to-value ratio should be 80% or less.
What is Stamp Duty?
Stamp Duty is a type of land tax that you must pay to the government when you buy a property. Everyone who buys a property in the UK must pay Stamp Duty. The amount of Stamp Duty you pay depends on the property’s location and value.
What is a mortgage agreement in principle?
A mortgage agreement in principle, also known as a decision in principle, is a statement from a lender that indicates how much they may be willing to lend you based on your current financial situation. It is not a guarantee, but it can help you understand what you can afford when house hunting.
What is the difference between a repayment and an interest-only mortgage?
With a repayment mortgage, you pay back both the amount you borrowed and the interest on the loan. With an interest-only mortgage, you only pay the interest on the loan each month, and the loan balance remains the same. However, interest-only mortgages are less common now due to stricter lending rules.
Can I get a mortgage if I have bad credit?
Getting a mortgage may be more difficult if you have bad credit, but it is not impossible. Some lenders specialise in offering mortgages to people with bad credit, but these usually come with higher interest rates and fees.
What is a remortgage?
A remortgage is when you switch your mortgage to a new lender or deal, either to get a better interest rate or to borrow additional money against the equity in your home.
How long does a mortgage application take?
The length of time it takes to get a mortgage application approved can vary depending on the lender and your individual circumstances. It typically takes around 2-4 weeks, but it can take longer if there are complications or delays.
Why Use an Adviser to Find a Mortgage?
Entering into a mortgage agreement is likely to be the most significant financial commitment you ever make. It comes with a lot of stress, panic and potential pitfalls that could cost you each month for many years.
Using a professional mortgage broker like Elevate will make the process smoother and even more enjoyable. Our dedicated mortgage advisers will assess your circumstances to source the best mortgages from the whole of the market. If you don’t want to make mistakes that could make you pay more for your home, mortgage advisers can help.
A mortgage broker will also help you navigate the complex and confusing world of mortgages, ensuring you understand all the options available to you. This includes understanding the different types of mortgages and their pros and cons, as well as explaining complex terms like Loan-to-Value (LTV) ratio and Stamp Duty.
Contact Us for Mortgage Advice
If you're considering buying a property or looking to remortgage your existing home, our team of expert mortgage advisers is here to help. We can provide you with a free, no-obligation mortgage consultation, where we'll assess your financial situation and provide bespoke advice tailored to your needs.
Contact Elevate now to discuss your property purchase and discover how we can assist you with your mortgage. Our friendly team are always here to answer your questions!
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