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.

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.

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