Mortgages tailored to your needs

For most people, their mortgage is probably the largest financial transaction and commitment they are likely to undertake. We recommend you seek mortgage advice which is individually tailored to your needs and requirements.

The ideal mortgage solution

Individually tailored mortgage advice is more important now than ever. As a consumer base, we are far more financially aware than we ever have been. Every newspaper has a section on “best mortgage rates”. They may be the best in terms of interest rate, but are they the best for you long term? Is there a large variance in fees, what is the APR, how is the interest applied, are there additional charges after the initial deal? The list could go on and on. We may be more financially savvy, but the mortgages themselves are also more complicated than ever.

One of the advantages of dealing with an Independent Financial Adviser is they can assist in finding the most appropriate mortgage to suit, through having extensive knowledge and experience of the house buying process and the available products.

We have experience in all aspects of mortgage advice, from first time buyers, moving up the property ladder, to arranging Buy to Let and Lifetime mortgages.

Types of mortgage

The interest payable on your mortgage is split into 2 main categories. Firstly, we have variable rates, which can rise and fall in line with economic conditions. Variable rates will be linked to either the Bank of England Base Rate (commonly known as a tracker), or will be a lender’s Standard Variable Rate (known as discounted). The other available type of interest rate is a fixed rate, which will fix your payment for a certain length of time, thereby assisting in budgeting.

As well as the type of interest, another important consideration is portability. On average, we now move home far more often than we did 20 years ago. Therefore, it is important that your mortgage can go with you to your new property.

More of us are self-employed than before, as well as many people having a large degree of bonus, overtime, allowances and commissions making up part of their income. The ability to be as flexible as an individual’s needs, in as far as overpaying your mortgage, or even taking a holiday from your mortgage, are important considerations.

Ways to repay your mortgage

There are 2 main ways to repay your mortgage loan. The first is the interest only method. With this method, you pay only the interest to the lender, so your amount outstanding remains the same, and does not reduce. You make separate plans to pay this off by building up a lump sum in some form of investment, from endowments and pensions, to PEPs and ISAs.

The main advantage of this method is the varied choice of investment vehicles, which can be increased if the mortgage is increased. The major disadvantage is there is no guarantee that the investments vehicles will increase to a level guaranteed to pay the loan off completely.

With this in mind, our investment specialists will review any existing repayment vehicles you may have and help you decide if these should continue to be used towards the loan, and if they are suitable for you. We can also advise on the most suitable option for any new investment plan to clear the loan.

Alternatively, the loan can be repaid from day 1, by using the repayment method. This involves repaying the interest, and some capital, every month. By making every payment when it is due, you are guaranteed to have the loan paid off at your chosen end date. The main advantage of this method is that the amount outstanding reduces with every payment made. Whilst this method reduces the outstanding capital, the earlier payments are more of interest than capital, although this does reverse in the latter years.

Please be aware it is your responsibility to ensure the repayment of your mortgage at the redemption date, or your death, or if you should fall seriously ill.

How we can help

Only after careful consideration of your entire finances, goals and aspirations, would we be able to confirm which of the above methods we would advise for efficient repayment of your mortgage.

At McCrea Financial Services, we pride ourselves on our ability to constantly review all aspects of your finances, from investments to mortgages, protection to pensions. We look at your mortgage not only as a loan to buy your home, but as part of your overall financial profile, in order that it ties in with your intended retirement date, when you plan to start a family and when you wish to move home.

Please complete the small enquiry form, and we can get to work for you as soon as possible.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE, OR ANY OTHER LOAN, SECURED ON IT.