We think so. Take the stress out of homebuying with a qualified adviser.

Buying a house is one of the biggest financial commitments you can make and, for most of us, a mortgage is an essential way to get there. But the mortgage market can be complex, and the time and effort demanded by the homebuying process can be substantial.

Working with a qualified mortgage adviser can make things a lot easier. Here are five reasons to consider seeking mortgage advice.

They know the market

There’s a plethora of providers and products out there beyond the big high-street brands. But navigating the market is a mortgage adviser’s bread and butter. They’ll use their deep knowledge of different lenders and products to recommend the right mortgage for your situation, doing all the research so you don’t have to.

That can be especially valuable if your financial circumstances might limit your options, for example if you’re self-employed or have blips in your credit history. Mortgage advisers know which lenders are more comfortable taking on people in your situation, and they’ll help you adjust your finances to give you a better chance of meeting a lenders criteria.

They know what a good deal looks like

Low rate might seem like the most attractive option but other factors, like fees, loan conditions and the term, can have a substantial impact on the overall affordability of a mortgage.

An adviser will help you look beyond the headline rate and understand the total costs associated with a given product. That could save you thousands or even tens of thousands in the long run.

They do the hard work for you

Advisers do so much more than just find you a mortgage. They’ll help you complete your paperwork, liaise with solicitors and surveyors on your behalf and suggest other products to help boost your financial security.

You can do all this yourself if you wish, but support from a qualified adviser could alleviate a lot of the stress associated with buying a house, especially if it’s your first time.

They’re highly qualified

Our mortgage advisers are fully qualified and work to rigorous standards of excellence that ensure they provide fantastic service. They’re backed up by knowledgeable head office teams and they have a fantastic range of lenders and products to choose from. No matter your situation, they’ll find the right mortgage for you and make the homebuying process as smooth as possible.

Still not sure if advice is right for you? Contact one of our advisers today for a no-obligation chat about your mortgage needs.

YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Chapelgate Private Finance is a trading name of Chapelgate Associates Ltd which is an appointed representative of Altura Mortgage Finance, which is authorised and regulated by the Financial Conduct Authority.

We break down seven common costs associated with buying a home.

A deposit is the tip of the iceberg when it comes to buying a home. From legal fees and buildings insurance to stamp duty and removals, there’s a host of smaller costs that can rapidly build up if you’re not careful.

The average move comes to just over £10,000 for a house worth £292,000 in 2025. The actual cost of moving for you will depend on the value of your house, whether you’re a first-time buyer, the type of survey you get and much more. Let’s unpack seven common costs and help you get ready for your next move.

Advice fee

An adviser takes a lot of the hassle out of the mortgage process. They do all the research for you, and they might be able to find exclusive deals and discounts. They can help you find a specialist mortgage if you have a small deposit, you’re self-employed or haven’t been with your employer for long. They’ll often help with the paperwork and explain all the industry jargon too. And you’re secure in the knowledge that they’ll only recommend mortgages that are right for your needs.

Naturally, all these benefits attract a cost. Our advisers always outline their fees at the start of the process so you know exactly what you’ll be paying.

Mortgage fees

You’ll need to pay your lender a few administrative fees when you apply for a mortgage. Comparing these fees across lots of different deals can get confusing, and some of them can have a significant impact on the overall cost of your mortgage. Fortunately, our mortgage advisers can help you understand them.

A booking fee effectively reserves the loan whilst your application is processed and is typically £100 to £200.

An arrangement fee covers the cost of setting up your mortgage. Some lenders charge flat fees whilst others charge a percentage of the loan, which can get expensive if you’re taking out a large mortgage.

A valuation fee pays for the lender’s survey of your property to make sure it’s priced appropriately. The valuation also confirms how much they’re willing to lend you. This can cost between £100 and £300 depending on the property, but some mortgages come with free valuations.

Homebuyer survey

You don’t need a homebuyer survey, but an inspection of your new home gives you peace of mind. It’ll also highlight any potential problems, which could save you thousands in repairs. The cost of a survey varies from £400 for a basic inspection up to £1500 for a thorough one. Our advisers can point you towards reputable chartered surveyors.

Legal fees

These pay for a solicitor to do the legal paperwork for you, a process known as conveyancing. Legal fees can vary depending on the level of service you want and the experience of the solicitor, but it’s wise to allow around £2,000 to make sure you’re covered.

Home insurance

Your lender will need you to take out buildings insurance to protect your home from fire, floods and other damage. It’s often a good idea to get contents insurance to cover your possessions too, and many insurers offer combined deals. The average cost of combined buildings and contents insurance is around £400 but, as with most insurance, it’s worth shopping around to find a good deal.

Stamp Duty

Most homebuyers need to pay stamp duty, but exactly how much you pay depends on the value of your home, whether you’re a first-time buyer, whether you own other property or if you’re eligible for an exemption.

From 1 April 2025, stamp duty rates are as follows:

There are plenty of online calculators you can use to work out how much stamp duty you might need to pay, but our mortgage advisers can help with this too. Check the government website for a full list of rates, additional charges and exemptions.

Moving costs

Once you’ve got the keys, it’s time to start packing things up. Removal costs vary dramatically depending on how much (and how far) you’re moving. You could pay as little as £400 to move out of a 1-bedroom flat and over £2,300 to move from a 4-bedroom house, so this is one area where planning (and saving) ahead is crucial.

Understanding the costs of buying a home can help you get prepared for moving day and avoid any unwelcome financial surprises.

Take the stress out of homebuying, Talk to one of our advisers today if you’re in the market for clear, non-nonsense mortgage advice.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Chapelgate Private Finance is a trading name of Chapelgate Associates Ltd which is an appointed representative of Altura Mortgage Finance, which is authorised and regulated by the Financial Conduct Authority.

Sources:

https://hoa.org.uk/cost-of-moving-house/

https://www.nimblefins.co.uk/best-cheap-uk-home-insurance/average-cost-home-insurance

Stamp Duty Land Tax: Residential property rates – GOV.UK

We’re here to help. We are mortgage advisers and we can help you navigate the self-employed mortgage market and any of the challenges you may face.

What is a self-employed mortgage?

There isn’t a specific product called a self-employed mortgage, you will be applying for the same mortgages as those who are employed. The key difference is that lenders look at self-employed earnings differently and have lending criteria that considers borrowers that do not have an employer to back up their earnings.

So, when it comes to applying for a mortgage, you will need to prove your income will cover your monthly mortgage payments.

How do I prove my self-employed income?

The documents lenders require as proof of income will depend on how you run your business and will be different for sole traders, partnerships, limited company directors and contractors. These proof of income documents could include tax calculations, tax year overviews, tax returns, business accounts, and bank statements.

You will usually be required to provide at least two to three years of business accounts and bank statements to prove that you have been earning consistently for some time. But if you haven’t, don’t feel you’re automatically written off, even if you’ve only been trading for a year – it’s possible we can source a mortgage for you.

Seeking advice is a good thing

If you’re self-employed, it makes sense to get a helping hand from a mortgage adviser.

We’ll help you compile all the documents you need and help you access a wide range of mortgages including those that are only available from specialists – who may offer more flexible options. An expert in your corner can find a solution that’s completely tailored to your needs.

Ready to get started? Speak to an expert self-employed adviser today.

Call 020 7317 7311 or drop them an email on info@chapelgateprivatefinance.com

Chapelgate Private Finance is a trading name of Chapelgate Associates Ltd which is an appointed representative of Altura Mortgage Finance, which is authorised and regulated by the Financial Conduct Authority.

With gifts and loans from the Bank of Mum and Dad totalling a whopping £9.4bn in 2023, it would be one of the UK’s biggest if it was a real bank or lender. Given the clear affordability challenges still facing house buyers – particularly first timers – that figure only looks to set to increase.

Whether it’s the Bank of Mum and Dad, Nan and Grandad or the Bank of Family, first-time buyers (FTBs) up and down the country continue to call on their loved ones for that extra support. While the most obvious method is by helping to fund deposits, there is actually a number of ways a parent or family member can help make buying a house a reality.

Deposits

Let’s start with the most obvious one. Through a gift or a loan from family, FTBs are able to boost their deposits. This can help with just getting onto the ladder, or perhaps squeaking into a better loan-to-value bracket – helping to unlock more desirable interest rates.

Given the cost pressures, high inflation and ever-higher rents that have limited the ability of renters to save up for a deposit, it’s not hard to see why this support is needed. According to research by L&G, around 68% of the total value of the Bank of Family goes towards deposits, equalling £5.6bn.

Most lenders will allow you to use a gift or loan to help make up or cover a mortgage deposit. You will be asked to provide proof that it is indeed a gift, or if a loan, how this will be repaid.

Joint Borrower, Sole Proprietor (JBSP)

Beyond the gifting or loaning of money, family members can also support their loved ones through a joint borrower, sole proprietor mortgage. Also known as an Income Booster mortgage, this is where multiple people come together to buy a property, but just one person owns the home.

This can be up to four people using their combined income and can include parents, but also siblings, other family members or even friends in some cases. There’s no expectation for the other parties to commit towards the deposit, but they will be liable if the property owner is unable to make the repayments.

It may not be a product that every lender offers, but there are certainly options available. There’s much to consider too, particularly given the joint liability, making a mortgage adviser a good person to speak to if you’re considering a JBSP mortgage.

Guarantor

A similar proposition is a guarantor mortgage, where another person – typically a parent of family member – takes responsibility for the mortgage payments if you’re unable to pay. Similarly, they won’t own a share of the property or be named on the deeds.

They may however be expected to offer up some collateral to give the lender that extra protection should you fail to keep up with the payments. This can be in the form of savings, or by securing the mortgage against their own property.

As the famous saying goes, terms and conditions apply – as do certain exclusions depending on the lender. Like JBSP, it’s a big decision to make – especially for the guarantor – but a mortgage adviser is best placed to run through the all the options.

Speak to an adviser

While it is certainly tougher for first-time buyers to get onto the ladder, there is a wealth of options available to try and support that first step. That is definitely the case if Mum and Dad or wider family members are able to provide some assistance, either through a gift or loan, or through supporting your mortgage application.

As mortgage advice experts, we can help you explore all the options available to you and if you’re not quite in a position to buy, we can help put the steps in place to help you get there.

To book your appointment with us, please call 020 7317 7311 or email, info@chapelgateprivatefinance.com.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Chapelgate Private Finance is a trading name of Chapelgate Associates Ltd which is an appointed representative of Altura Mortgage Finance, which is authorised and regulated by the Financial Conduct Authority.

According to a recent report from Skipton Building Society, the first step onto the property ladder is the hardest.

There’s no question that it can all seem very daunting for first-time buyers who want to purchase their first home. For those saving hard to get a deposit together, it is important to note that this is just one outlying cost of moving house.

One of the biggest additional costs to factor into a house move is stamp duty. Stamp duty is a tax paid by the buyer of a residential property.

The eagle-eyed among you may have spotted that stamp duty relief for first-time buyers will be changing after March 31, 2025. This means that the threshold at which first-time buyers pay stamp duty land tax will decrease from a property value of £425,000 to a value of £300,000. With the average house price in England being £309,000 in September 2024, it’s very likely that buyers will have to factor in increasing costs.

What other costs are associated with moving and buying a home? 

In addition to stamp duty and a deposit, other costs to consider for any house purchase include:

• Conveyancing fees – you will need to budget for the legal process involved with buying a house, which includes legal fees, any searches carried out on the property or local area, and registration fees. According to the HomeOwners Alliance, this can cost in the region of £1,800.
• Surveys – an important aspect of your first house purchase is considering which survey to opt for to examine the construction and condition of the building before you commit to buying. Depending on the level of survey, prices can range from around £300 for the most basic survey, to £1,500 for the most comprehensive.
• Mortgage valuation – whichever lender you choose, they will conduct a process to determine how much they believe the property is worth, usually at a cost of roughly £300.
• Mortgage arrangement fees – also known as a product fee, this is charged by the lender for setting up a mortgage deal or for providing access to better mortgage rates. This can be paid up front or adding to the mortgage – just beware that with this option, you will pay interest on the fee.
• Removal fees – the all-important transportation of your worldly goods to your new home will cost anything from £450 to £1,400, according to the HomeOwners Alliance.

How can first-time buyers minimise costs when buying their first home? 

It is always advisable to shop around to get the right deal; get a few quotes from different companies to compare prices and packages. Reviews can also be a valuable tool, whether it’s a good conveyancing firm or removals company to ensure you are dealing with a reputable and proven firm.

Consulting a mortgage adviser is also an excellent way to talk not just about your mortgage, but how to truly understand all the associated costs that come with buying your first house. It can certainly be daunting if you’re a first-time buyer, but with the help of a mortgage adviser, they will be able to help you factor in those costs into the overall cost of your move, making sure it fits within your budget. Your mortgage advisers will also be able to recommend a surveyor and conveyancer.

To book your appointment with a mortgage adviser, please call 020 7317 7311 or email info@chapelgateprivatefinance.com.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Chapelgate Private Finance is a trading name of Chapelgate Associates Ltd which is an appointed representative of Altura Mortgage Finance, which is authorised and regulated by the Financial Conduct Authority.

A glance at the news over the last 12 months or so would suggest that mortgage rates are a very hot topic indeed.

For the last 14 years, mortgage rates – the interest rate charged on the money borrowed to purchase a property – have tended to be low, because interest rates, in general, have remained low.

But Liz Truss’s mini budget in September 2022 had a significant impact on mortgage rates; many mortgage products were withdrawn in the aftermath of the fiscal event, and interest rates rose very sharply which made monthly mortgage payments much more expensive for homeowners.

The good news is, according to a report from Moneyfacts Group, mortgage rates have come down since peaking in 2023. And while rates do not currently match the lows of the last 14 years, for first-time buyers, it is imperative that they seek the most affordable rate for their circumstances when purchasing a first home.

What are the different types of mortgage?

There are two main types of mortgage rate: fixed rate, where the interest stays the same for a set number of years, usually 2, 5, or 10 years, and variable rate, where the interest rate can change.

Fixed rate mortgages are the most popular option, with 74% of homeowner mortgages taken out on a fixed rate contract according to UK Finance, and 96% of new borrowers choosing this option since 2019.

One reason why they are popular is because it can be easier for borrowers to budget as the monthly payments stay the same until the fixed-term period ends. Also, they will not be affected by interest rate rises during the term of the mortgage. Equally, they also won’t be affected if the interest rate falls. However, with stability around monthly payments, many are happy with this potential trade-off.

A variable rate means that the amount you pay each month can go up or down, usually in line with the Bank of England base rate of interest, which means monthly payments are much more unpredictable.

If we are in a period where we could see the base rate cut – or multiple rate cuts – some borrowers may opt for a variable rate mortgage to help reduce their total mortgage payments. However, this comes with an element of risk as interest rates can always fluctuate in both directions.

You may also have heard of a standard variable rate. This is the interest rate a lender charges after the initial fixed rate ends. SVRs are usually higher than other mortgage products and can change at any time. As a result, many borrowers will look to remortgage or transfer to a new product with the same lender to capitalise on another fixed-rate period.

Seek advice to get the right deal 

Not sure which option is best for you? A financial adviser can be your best friend when it comes to choosing a mortgage that works for you.

They have access to a huge variety of deals available on the market and can help you select the right one to suit your individual circumstances. They will work with you to budget confidently and make sure you have enough money each month to be able to comfortably afford your mortgage payments – along with other living expenses.

To book your appointment with a financial adviser, please call us on 020 7317 7311 or email info@chapelgateprivatefinance.com.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Chapelgate Private Finance is a trading name of Chapelgate Associates Ltd which is an appointed representative of Altura Mortgage Finance, which is authorised and regulated by the Financial Conduct Authority.

For first-time buyers in 2025, the property market is in stark contrast to when previous generations bought their first homes.

The average first-time buyer in 1960 paid a deposit of just £595 (roughly £12,738 today) compared to an average of £53,424 in 2024.

A recent report by Skipton found that just one in eight potential first-time buyers can buy a home in their local area, and of this same group, 80% have insufficient deposit savings to get onto the property ladder where they live.

What are the barriers to homeownership?

As house prices have risen and risen, wages have failed to keep pace. In addition, the last few years have seen the UK hit with economic turmoil as a result of Brexit and the Covid-19 pandemic, meaning recovery has been slow. Households have had to withstand extremely high interest rates and inflation which has led to goods and services costing much more than usual.

As a consequence, many potential first-time buyers are unable to save sufficiently for a deposit because, according to Skipton’s report, around four in ten renters spend 45% or more of their income on essential housing costs, which further compounds their ability to save up for a deposit.

High house prices, job instability, and a cost-of-living crisis have therefore contributed to a vicious cycle whereby those who are renting are unable to realise the dream of home ownership because almost all of their income is spent on just getting by.

What help is available to would-be first-time buyers today?

Happily, there are a number of government-backed schemes such as the Lifetime ISA, First Homes Scheme, shared ownership and products from specialist lenders that are aimed at alleviating some of the burden of buying a first home.

Whatever your circumstances in the lead up to buying your first property, an important step you can take is speaking to a trusted mortgage adviser.

A mortgage adviser can help you to understand your level of affordability, and the various different products that may be available for you.

This is not a one size fits all process, and a mortgage adviser will be able to the right steps to take including identifying the right lender and product for your individual situation, as well as discussing with you how to bring down the overall cost of your move.

To book your appointment with a mortgage adviser, please call us on 020 7317 7311 or email info@chapelgateprivatefinance.com

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Buying a home comes with extra costs and fees you need to be aware of – from securing your mortgage to booking the removal van. In 2024, the average cost of buying or moving house is estimated around £10,255. These costs can be higher or lower depending on where you live, the value of your property, and some of the choices you make.

Whether you’re a first-time buyer, downsizing or moving to your dream family home, it’s an exciting – and busy – time. It also comes with costs that could take you by surprise, so here’s a look at the ones you’re likely to come across and how we can help you through the journey.

Advice fee

Our mortgage advisers can assist when you’re applying for your mortgage in principle, putting you in a strong position once an offer is accepted. The benefit of using a broker is that they have the expertise to ensure you’ve covered the required checks and paperwork related to buying your home and getting a mortgage.

They will let you know at the start of the process about their fees.

Booking and arrangement fees

These fees go to your mortgage lender. The booking/application fee is usually around £100, but the arrangement fee can be much higher – usually around £1,000 or a percentage of the loan. Your mortgage adviser can help you decide whether it’s better in the long term to opt for a mortgage with a slightly higher interest rate and lower arrangement fee, rather than a high arrangement fee and lower interest rate.

Valuation fee

Your mortgage lender will need to value the property themselves to make sure it’s not over- or under-priced. The valuation will also confirm the amount they’re willing to lend to you. Some lenders don’t charge a valuation fee, but if they do, it can cost anywhere between £100 to £300 – depending on the size of the property and its value.

Surveyor’s fees

It’s important to know that the valuation fee doesn’t look at the structure of your new home, or any issues to do with maintenance and repair. Your mortgage adviser will be able to arrange an expert to conduct a thorough structural survey of the property. This will help you decide whether to negotiate the terms of the sale with the seller and their agent – before you exchange contracts. Survey fees can range from around £250 to over £600 – all depending on the level of service required and the size of the property.

Conveyancing costs

Buying a property involves lots of paperwork, and the legal side of things (known as conveyancing) covers the fees to solicitors or licensed conveyancers to carry out the work (‘disbursements’) as well as their own specific fees. Conveyancing can cost from £850 to £1500, and disbursements can amount to £250 to £450.

Electronic transfer fees

On the day you complete the sale and exchange contracts, a fee of around £40 to £50 will be added to your costs to cover the transfer of funds from your lender to the solicitor.

Insurance

Your lender will need to see that your new home is insured with buildings insurance. In 2024, the average cost of combined buildings and contents insurance is just under £400. Our advisers will help you find the best insurance plan to cover your new home and calculate how much contents coverage you will need as part of your insurance.

Removals

Once you’ve got the keys to your new home, it’s time to move in! Removal firms can charge anything upwards of £500, depending on how much you’re moving and how far it’s going.

Advisers will help take the stress out of homebuying and can find you the best deals and savings available.

Don’t forget the stamp duty

As a buyer you’ll have to pay a stamp duty land tax, depending on how much you’re paying for the property, whether you’re a first-time buyer, where you live, and where the property is located within the UK. In England and Northern Ireland for example, homebuyers pay stamp duty on a residential property’s sale price over the first £250,000, this will remain in place until 31 March 2025.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

A credit score can range from 0 to 1,000, depending on the agency, and is worked out using the information in your report. Each agency might have slightly different credit scores for you and their own levels of what they rate as a ‘poor’, ‘fair’, ‘good’ or ‘excellent’ credit score.

What they all have in common is that they offer similar perspectives on how lenders may view you when you’re looking to do something that involves credit – applying for a loan, credit card, mobile phone contract or securing a mortgage deal.

Why your credit score is important

The higher your credit score, the better you may look to a bank, building society, credit card company or other lenders. Your score can help you understand how lenders might assess how risky it would be to lend you money and whether you’re reliable when it comes to paying it back, as well as deciding how much interest you’ll pay and what your credit limit could be.

Lenders also have their own processes and consider factors besides scores to help make their decisions about you – so just because you’re turned down from one doesn’t mean another will.

“The higher your credit score, the better you may look to a bank, building society, credit card company or other lenders.”

What can affect your credit score?

It’s normal for your credit score to move up or down, but it’s a good idea to check it regularly to make sure it isn’t changing too much, as this could be due to inaccurate information in your credit report, or even due to someone fraudulently using your details.

The way you work with and use your credit can affect your score. It could be a change to your credit card balance, opening a new account somewhere, closing an account or simply making (or missing) a payment on a credit card. Other factors include your payment history, presence of any public records (like bankruptcies) and your credit usage, including if you’re keeping your debt to manageable levels.

The age of your credit accounts matters too, as it shows your experience in managing credit. Your credit limits and how much available credit you have access to can affect your score, along with any new account openings; making many credit applications at once may signal to lenders you need money.

What can affect your credit score?

You’re legally entitled to access your statutory credit report for free – online or by post – by requesting them directly from each of the three main credit reference agencies. To find out your credit score, try Credit Karma, TotallyMoney or sign up for a trial with checkmyfile.

“Only use your credit card for purchases you can afford so you’re in a stronger position to make your required payments every month.”

 Six ways to improve your credit score

1. Pay your bills on time, to show lenders you’re reliable at paying things like your rent or mortgage, utility and credit card bills.
2. Only use your credit card for purchases you can afford so you’re in a stronger position to make your required payments every month. Avoid using the maximum credit limit on your card – aim for a limit of a smaller portion of your total credit limit.
3. Use your credit card responsibly. Keep your oldest credit accounts open because having established accounts in good order shows lenders you’re experienced and reliable when it comes to managing credit.
4. Avoid withdrawing cash using your credit card. Lenders could see this as a red flag, and it can also be expensive.
5. Correct any errors on your credit report by writing to the agency concerned. These could include an incorrect address, letting them know you’re no longer linked to a joint bank account, or flagging any credit activity that hasn’t come from you.
6. Put yourself on the electoral register. Registering your details on the electoral roll helps lenders quickly verify your identity if you want to take out a loan.

Get in touch

Speak to your financial expert to help you improve your credit score.

Please get in touch to arrange a time to chat, call 020 7317 7311 or email, info@chapelgateprivatefinance.com

Here are some key facts to help you feel more confident about your financial decisions.

The different types of mortgages

The types of mortgages vary, depending on how long the term lasts, how much you pay every month and the interest rate.

Fixed rate

The most common length of fixed-rate mortgages are two- and five year deals, where you lock in a fixed rate of interest for that period.

When you’ve reached the end of the term, your lender’s standard variable rate (SVR) comes into effect, and your monthly payment will probably go up.

As with all mortgages, fixed-rate deals come with fees, but you may find that even if a two-year deal has a lower rate of interest than a five-year one, their fees are similar.

The benefits to this type of mortgage is knowing exactly how much your payments will be over the term.

Standard variable rate

Lenders set their own SVR which does not need to be tied to the Bank of England’s base rate of interest.

This makes it important to find out what their SVR is before you commit to their product. Lenders can raise their SVR at any time (sometimes when the Bank of England hints that it might raise the base rate). This could leave you with a higher monthly mortgage payment.

The benefits of this type of mortgage is that you can have lower arrangement fees than a fixed-rate or tracker deal, you can overpay or clear your mortgage without having to pay a fee, and if interest rates go down, your mortgage repayments may go down too.

Tracker rate

A tracker mortgage tracks the base rate set by the Bank of England and will add a set percentage onto that base rate (for example, the base rate plus 3%). Similar to a fixed-rate product, a tracker could offer you an introductory period and then move your rate to the lender’s SVR. Some tracker products last for the entire lifetime of the mortgage term. This could translate into higher monthly mortgage payments if the Bank of England raises the base rate often.

The benefits of this type of mortgage is that its rates can be lower than other mortgage deals, they are cheaper when the base rate is low, it might be easier to overpay on your mortgage and if the base rate falls, so will your interest payments. But if the base rate goes up, some providers will let you switch to a fixed-rate mortgage without any fees.

Discount mortgages

A discount mortgage gives you the lender’s SVR at a discounted rate for a set period of time (for example two or three years). Some lenders offer these mortgages with longer discounted periods but others offer them with a staggered approach.

For example, the first six months could be at a lower rate that then moves to a slightly higher rate for the remainder of the term. The benefit of this type of mortgage is that you pay lower early repayment charges compared to fixed-rate mortgage deals.

This can help to keep charges to a minimum if you decide to pay more than your monthly repayments.

Also, you pay a lower interest rate than the mortgage provider’s standard variable rate for the duration of your deal and you have the possibility of paying even lower interest rates if your provider’s standard variable rate is lowered because of changes to the Bank of England’s base rate.

For most of us, buying a home will be the biggest financial decision we’ll ever make. Buying a property isn’t just about the right mortgage; it also involves solicitors, surveys and insurance.

“For most of us, buying a home will be the biggest financial decision we’ll ever make.”

What are the main mortgage fees?

There are a range of fees when you’re a first-time buyer or moving to a new mortgage lender, including:

• Application fee – To set up your new mortgage. Could also be called an ‘arrangement’, ‘product’ or ‘booking’ fee. This could be anything up to £2,000.
• Valuation fees – Lenders will carry out a valuation of the property to check whether it’s worth the amount you’re paying for it. Fees can be upwards of £150.
• Surveyor’s fees – These cost around £250 and involve a surveyor inspecting the property to make sure there are no structural issues.
• Solicitor’s legal fee – Covers the legal work to do with managing the transfer of your mortgage and conveyancing and local searches to check for planning issues. Legal fees can range from £850 to around £1,500 and searches could be around £250-300.

A brief A-Z of mortgage terms

Buildings insurance – Covers you for damage to the structure of your home – you’ll need to have a policy in place when you take out a mortgage.

Capital – The amount of money you borrow to buy a property.

Completion – Completion happens after contracts have been exchanged, remaining funds have been transferred from buyer to seller and the buyer receives the keys to their new home.

Equity – The amount of the property that you own outright – your deposit as well as the capital you’ve paid off on your mortgage.

Exchange of contracts – When buyer and seller become legally committed to the complete the sale of a property.

Land Registry – The official body responsible for maintaining details of property ownership.

Stamp duty – You’ll need to pay stamp duty land tax when you buy a property over

a certain price.

Five basics of buying a home

1. Saving for your deposit

How much cash can you afford to put down? At least 5% of the price of your new home should make up your deposit. The bigger your deposit, the better your chances of securing a mortgage with lower interest rates on your borrowed amount.

2. Your credit rating

Your mortgage lender will use monitoring agencies like Experian, Equifax and TransUnion to

review your credit rating. If you’ve got a good record of keeping on top of credit card or loan payments – and using your credit limits effectively – it could help with your mortgage approval.

3. Mortgage in principle

Applying for a mortgage in principle – which is a letter from a mortgage lender confirming you would (in principle) be approved for a mortgage – puts you at an advantage. It shows the seller you are serious about buying and have the means and approval from a lender to buy a home.

4. Applying for a mortgage

If you’ve found a home and made an offer that has been accepted, the mortgage application can move forward. It’s good to have an idea of the type of product you’re after, something a mortgage adviser can help you decide.

5. Conveyancing

Conveyancing is to do with the legal paperwork around buying a home, from carrying out searches to putting together contracts. Speak to an adviser about finding a trusted solicitor that provides conveyancing services.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Get in touch

We are here to help you. When you get in touch with us, we will want to learn more about you, your circumstances, and your overall financial position. We’ll also want to hear your thoughts on which type of mortgage you believe is right for you, call us on 020 7317 7311 or email, info@chapelgateprivatefinance.com