Think carefully before securing your debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
If you are looking to move house, you need reassurance that a mortgage will be available to you. Recent changes in the mortgage market mean that you shouldn't take for granted that getting another mortgage will be simple and straightforward. You may even find that these changes mean your existing lender might not be willing to help. Your age, employment situation, credit history or the new, more stringent affordability calculations could mean you no longer fit their criteria. Thankfully, not all lenders are the same, and PKS Associate’s experience and market knowledge can quickly identify which lender might offer the most suitable mortgage for you.
When you do find a house, to take your offer to buy seriously the estate agent will need to know that you are in a position to buy and how much you are able to borrow. The estate agent will be working for the seller to get the best price they can for the property, and it's not always the best idea to let them know your full financial situation. This might end up in you paying a higher price for the house than if you were able to negotiate more impartially – or even with you losing the house to someone the agent thinks might be in a better position than yourself.
It is important that you speak to an experienced mortgage broker at the earliest opportunity – don't leave it until you find a house. At PKS Associates, we can offer you a free initial consultation to find out how much you can borrow and approach a lender for you to get a mortgage agreement in principle. Again, this is at no cost and does not bind you to a particular lender if a better deal is available when you do actually need to make your full mortgage application.
In recent years, the remortgage market has boomed as many borrowers know that they can save money by moving their mortgage to a new lender or by renegotiating their current deal. As the remortgage market has developed, lenders have started to offer attractive incentives like reduced legal and arrangement fees, or even no fees at all. These incentive packages will ensure that changing your mortgage is very cost-effective for you.
You can remortgage for other reasons: if you have owned your home for a number of years, a remortgage could release equity, giving you cash for other things like home improvements and holidays. Alternatively, a rise in income may lead you to consider paying off your mortgage more quickly, removing or reducing uncertainty about changes to your monthly repayments.
If you are currently paying your lender's standard variable rate or coming to the end of your tied-in period, it's very likely that PKS Associates could save you a significant amount of money. As whole of market mortgage advisers, we have access to deals from across the whole market. We will look at your current mortgage arrangements, talk through your reasons for a remortgage and identify the deals that most suitable deal to suit your particular circumstances. Even if your current deal carries early repayment charges, a remortgage may still save you money in the long run.
We won't recommend a remortgage unless it's the most cost-effective thing for you to do. Staying with your existing lender and renegotiating your deal will not incur any of the legal expenses or other costs, so we will always consider this option when calculating what offers you the best value for money.
With an offset mortgage, the idea is that your mortgage is linked to one – or sometimes several – savings accounts, and offset against them. Every month, when your lender calculates what you owe based on the total amount you borrowed, they will only charge you interest on the difference between your mortgage and your savings.
If, for example, you had an £800,000 mortgage and £200,000 worth of savings, you would only pay interest on the £600,000 difference. As the amount in your savings account fluctuates over time, so will the portion of the mortgage on which interest is charged.
Because you pay less interest, offset mortgages can be a good way to reduce your monthly outgoings. Ultimately, you may also be able to clear your loan early. Another plus is that your money is still accessible to you should you need it at any point. Deals can also be fairly flexible – you can offset both savings and current account against your mortgage.
Offset mortgages can also be a savvy way of making tax savings. Interest earned on savings accounts is of course taxed, but with the offsetting technique there is no tax to worry about. Given that the interest you are charged on your mortgage will generally outstrip anything you can earn on your savings, moving to an offset means you are essentially saving at your mortgage rate, tax-free.
With an offset mortgage the accounts and mortgage must be with the same provider.
Whether buying or selling, you will need professional help with the conveyancing process. Through our range of national conveyancing law firms – all of who are specialists in residential property conveyancing – we will guide you from start to finish, ensuring you receive a great service.
We have worked very closely with these firms over many years, and the team at PKS Associates will have regular contact directly with them and keep you updated throughout the conveyancing transaction, enabling us to coordinate your move more efficiently.
Key benefits include:
Quilter Financial Planning accept no responsibility for any conveyancing
Conveyancing is not regulated by the Financial Conduct Authority.
Think carefully before securing your debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Simply call 01788536545 or email us at enquiries@pksassociates.co.uk to receive your personalised FREE QUOTATION.
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Get a call backMortgages are possibly the largest single transaction in most people's lives. Buying a property can be a stressful and time-consuming experience, although nowadays the financing of a mortgage is a case of finding and selecting the most suitable deal.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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Typically, many of our clients may want to invest money on a regular basis to build up a capital sum for the future. You might be planning for your retirement, looking to generate investment income to top up your pension, saving for a deposit to buy a property or holiday home.
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PKS Associates
6 Somers Road, Rugby,
Warwickshire CV22 7DE
T: 01788 536545
F: 01788 536945
M: 07973628302