Mortgages
If you’re looking at moving home, thinking about re-mortgaging to get a better deal, or investing in a buy-to-let property, there are lots of decisions to be made and whilst we can’t help you with most, we can assist with obtaining the right mortgage deal for you.
Finding the right mortgage for you
We have access to over 90 lenders and over 12,000 mortgage deals, which we believe is the largest amount available from one provider.
The market for mortgages is vast, and we understand that most UK homeowners don’t have the time to become experts on the subject, so we’ve created a list to give you an over view of the types of mortgages on offer.
Purchase mortgages
There are two main types of purchase mortgage available on the UK mortgage market: repayment and interest only.
A capital and repayment mortage is the most common type being offered at the moment. With this type of mortgage, you’ll make monthly repayments for an agreed period of time (known as the ‘term’) until you’ve paid back both the capital and the interest.
The initial payments will be mostly be made up of interest and then towards the end of your term they will be mainly made up of the money borrowed.
This means that the amount you owe will get smaller every month and, as long as you keep up the repayments, your mortgage will be repaid at the end of the term.
Interest only mortgages
The difference here is how you repay what you have borrowed. With an interest only mortgage all you actually pay back, for the term of your mortgage, is the interest on the amount borrowed.
Whilst this means that your payments will be less, as you aren’t paying off any of the capital, you are expected to settle the entirety of your mortgage at the end of the term.
However, very few interest-only mortgages are now offered because, in the past, the majority of people who had interest-only mortgages actually had no means of paying back the capital at the end of the term.
These days, interest only mortgages are normally used for buy-to-let and other investments, as the property will be sold if you don’t have the arrangements in place to settle your debt at the end of your term.
Buy-to-let mortgages
As the name would suggest these are mortgages designed for purchasing buy-to-let properties rather than a residential home. It is unlikely that your lender will loan you money for a buy-to-let property with a residential mortgage.
A buy-to-let mortgage offer massive benefits to both experienced investors and first-time landlords. The benefits do come at a cost though, the deposit required for a deal like this is 25%-40%.
Similarly, to a residential mortgage, the bigger the deposit the better the rates you will get offered.
The most used mortgage for buy-to-lets are interest only. You’ll only pay the interest on the capital borrowed every month from the rent you collect, whilst also saving the money to pay off the capital debit at an agreed date.
Purchase
Purchase mortgages are also known as residential mortgages, and come in two forms: repayment and interest only.
Re-mortgage
Re-mortgaging your property allows you to continue to take advantage of the better starter rates that lenders offer, again and again.
Buy-to-Let
Buy-to-let mortgages offer massive benefits to both experienced investors and first-time landlords, with interest only options.
Current Best Rates
We have access to over 90 lenders and more than 12,000 mortgage deals, which we believe is the most extensive range available in one place. Take a look for yourself. Just enter in your mortgage details to see today’s best rates.
Please note: Frankly Best Buys are not guaranteed mortgage offers. You must go through the application process as normal. Please get in touch if you would like mortgage advice.
The Frankly Guarantee
Getting a mortgage and buying a house are not the easiest things in the world, and they are certainly not the cheapest.
So we created the Frankly Guarantee, which provides over £2,500 of financial peace of mind, should your house move go awry, putting you in a position to try again.
As always, you are our priority and we’re committed to delivering the right support and advice at the moments that matter most.
We’ll help you try that again
If your house purchase falls through, it’s not your fault, and you couldn’t have reasonably anticipated it happening, then Frankly could put you in a position to try again.
We can give you over £2500* to cover your lost fees including:
- Mortgage broker fee - up to £395.
- Valuation fee - up to £500.
- Lender application fee - up to £250.
- Conveyancing fee and searches - up to £1100.
- Accommodation and storage - up to £300.
*Please note that all claims are paid at the sole discretion of Frankly and evidence of all costs being claimed for must be provided.
How to get the best mortgage deal
Some people would have you start house hunting before you examine your mortgage options; this can lead you to look at unaffordable properties and end up disappointed. We always recommend you speak to a reliable and trusted broker before you start house hunting so you know exactly what your budget is. The same applies to re-mortgages; your current lender may offer a product transfer, but this is rarely the best deal available.
Here are some points we recommend you follow in order to have the best chance of getting the right mortgage for your needs.
1. Think about your deposit
As a general rule concerning deposit size, the more you can save up, the better.
Your mortgage deposit will generally need to be worth at least 5% of the value of the property you are buying. We recommend saving more than 5%, as the bigger your deposit, the greater the number of mortgage options you’ll have. You’ll also benefit from more favourable mortgage rates.
This is because lenders consider applicants with bigger mortgage deposits as less of a risk than those with only a smaller amount to put down. If you are able to afford to save up 10%, 15%, or 20%, lenders will see you as less of a risk and will offer you better deals, with better rates.
Lenders’ very best deals are usually reserved for people with either a 35% or 40% deposit, or the equivalent in equity, if they are an existing homeowner looking to re-mortgage.
2. Pimp up your Credit Score
If you aren’t already, then you will need to be registered on the electoral roll. This helps the lender confirm your address and your credit history. If you aren’t registered, then it is unlikely that a lender will be able to find enough information to proceed with your mortgage application.
Too many applications for credit will also make a lender question whether you will be able to pay back the mortgage.
There are also some significant factors that lenders will consider which you may not be able to change in the immediate future; your credit score is one of them. Before you apply for any mortgage, you should get 3 credit reports from 3 different agencies; this should be done regardless of how you perceive your credit history.
If you think you have bad credit, it’s better to be prepared with the necessary information and aware of the situation, before you apply for a mortgage. Use the preliminary credit checks to make sure all the info is correct, and any alterations you need to do can be done online.
3. Get rid of those debts
Any outstanding debts will reflect negatively on your mortgage application, as it may indicate you will have problems making repayments on your mortgage.
So, make sure as many of your debts are settled before your application. Similarly, to this, a history of using payday loans can suggest that you are desperate for finance. This can make a lender question your ability to make repayments.
A lender will also consider any financial associates you have and their credit histories. If you become liable for these debts in the future, then it may prevent you from making your mortgage repayments.
We understand that applying for a mortgage can be nerve-racking, and getting rejected is a scary prospect. If you feel you need advice or guidance, then please don’t hesitate to contact one of our expert mortgage advisers today.
4. Speak to a professional
There are many exclusive mortgage deals on offer to the public, but that aren’t advertised on the high street, including specific deals that could be perfect for you. The great news is we have access to lots of exclusive deals.
Get in touch with us today and one of our professional and experienced advisers will be happy to take you through your options.
Why choose Frankly?
We have access to over 90 lenders and more than 12,000 mortgage deals, which we believe is the most extensive range available in one place. We understand this is your mortgage and we want to give you the best advice, but you are under no obligation to follow it.
Get in touch
We know that any financial decision is a big step in every sense, and we want to make sure you are in the best position possible to take it.
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But we do aim to provide the very best advice we can to help you make the right decisions about your home and your financial security.
So, if you’d like to get some genuinely frank advice, then please complete our simple contact form and we’ll get right back to you.
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