A residential mortgage will be taken against a property in which you will live. You might be a first time buyer, home mover or existing home owner looking for a better rate or to increase your borrowing. The amount you can borrow will be based on your personal finances including income, credit commitments and a monthly budget planner. Residential mortgages can be secured with deposits from as little as 5% of the property value, subject to credit score. Whatever your circumstances, there is a mortgage out there for you and Northern Standard Mortgages will help you find the best and most suitable mortgage for you.
Your home may be repossessed if you do not keep up repayments on your mortgage
A Buy-to-Let (BTL) mortgage will be taken against a property which will be let out rather than lived in by the owner. Unlike residential mortgages, the amount you can borrow will usually be calculated by the lender based on the amount of rent which will be received for the property. BTL mortgages generally require a larger deposit (usually 25%) and you should always seek independent tax advice before purchasing a BTL property. Whether you are a first time landlord, an experience landlord with an existing BTL portfolio or even looking to purchase through a limited company, Northern Standard Mortgages will find the right deal for you to achieve your investing goals.
Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority
With a repayment mortgage, your monthly payments will cover the interest on your mortgage as well as paying back some of the capital you have borrowed. Over your mortgage term the amount you owe will slowly reduce and at the end of the mortgage term the mortgage will be fully paid off. Mortgage terms can be up to 40 years, the shorter term you take the quicker you will repay the loan which will save you in interest in the long run.
With an interest only mortgage you will only pay the interest on the mortgage amount each month, this means that your balance will not reduce as you make your payments and you will owe the same at the end of the mortgage as you did at the start. You will only be allowed to take this type of mortgage if you have a clear repayment strategy which is within the lenders acceptable criteria in order to repay the capital at the end of the mortgage term. These types of mortgage as not as widely available as they once were with lenders usually applying very strict eligibility criteria such as minimum income requirements and minimum equity requirements.
This type of mortgage would be a combination of the two types described above. Your monthly payments will only reduce the balance of the repayment part of the mortgage as well as covering the interest on both parts. Although the repayment part of the mortgage will be cleared over the term through your monthly payments, the amount of the mortgage taken on interest only will remain outstanding at the end of the term and a repayment strategy will be required.
A fixed rate will be set for a period of time, usually 2, 3, 5 or 10 years. The interest you will pay will remain set for the agreed period, so your payments will not change even if market rates change. There is usually a charge for exiting a fixed rate before the end of the agreed period so you should carefully consider your plans before tying into a faxed rate.
With a variable rate, the rate you are charged can change even within an agreed period which would then in turn change your monthly payments.
This rate is the lender's default rate which can change at any time meaning your payments can go up or down. This is the rate which you will usually revert to after the end of any agreed scheme such as a fixed rate term.
Tracker rates are a type of variable rate in that your payments can change during the scheme period. With a tracker rate, the interest you are charged is tied directly to the Bank of England based rate so the rate of interest you are charged will only change if the base rate changes.
Another type of variable rates but with this type of mortgage, the rate you are charged will be tied to the lenders Standard Variable Rate for a fixed amount of time. If the lender makes a change to their SVR, then you rate will also change.
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Hoults Yard, Walker Road, Newcastle Upon Tyne, England NE6 2HL, United Kingdom
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
A fee may be applicable depending on your circumstances and the complexity of your requirements, any costs will be agreed at the earliest opportunity.
The Financial Conduct Authority does not regulate all Buy to Let Mortgages.
The guidance and/or information contained within this website is subject to UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
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Registered in England and Wales Company No. 13011230. FCA Number: 954748
Registered address: Hoults Yard, Walker Road, Newcastle Upon Tyne, NE6 2HL
Northern Standard Mortgages LTD is an Appointed Representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.