Mortgage advice

Finding the best mortgage for you

Your mortgage is probably the largest financial commitment you will make and it is important to receive professional advice before taking such a large step.

There are many types of mortgage available and it is easy to become confused. The best deal isn't always the lowest interest rate. You need to consider the 'True Cost' of a mortgage including valuation and arrangement fees, higher lending charges, tie-in periods and early repayment penalties. Also, whether the lender is likely to lend you the amount you need.

Sovereign offer truly independent mortgage advice sourced from the whole of the market. We can also advise on all of your protection needs to ensure that both you and your mortgage are protected against any misfortune that may befall you.

We offer clear jargon-free advice and do not charge a 'fee' as we are paid directly by the lender or insurer. Please read our client agreement.

First Time Buyers

Moving into your first home is one of the most memorable moments in your life and there are few things more exciting than the freedom of living in the home of your choice. Unless you are lucky enough to be buying with cash, it is likely that you will need a mortgage to help you make the move. However, before you can begin to consider buying a new home you will need to know how much you can borrow and how much it will cost you each month.

This is where we can help you. One of our qualified Advisers will discuss your individual circumstances and assess your mortgage needs in order to ensure that we find the most suitable mortgage available to you. Besides telling you how much you can borrow and what your mortgage will cost, we will also give you details of the other costs of buying your new home, like Solicitors fees, stamp duty and where applicable any fees associated with your new mortgage. Our Adviser will help you budget to make sure that you do not over commit yourself, remember that you will also have other household costs to account for, such as Council Tax, Utility Bills, Food Shopping, Life Insurance, Buildings and Contents Insurance etc.

Where appropriate we will obtain an 'Agreement in Principle' from a lender, which will give you the confidence of knowing that a mortgage is available to you and just how much you can borrow.

Home Movers

Moving home can be more complicated than a first-time purchase because there is normally a sale and purchase involved and timing is therefore more crucial. We can provide advice on both, the moving process, your existing mortgage and your new mortgage and insurance arrangements. We will assist you to calculate the true cost of moving to ensure that you have included all necessary costs within your figures.

Once you have discussed your plans with one of our Advisers you will know the amount that you can borrow and how much this will cost each month. Remember you will also have other household costs to account for and our Adviser will assist you with your budgeting. We will also help you calculate the costs associated with your move like Estate Agents fees, Solicitors fees, Stamp Duty and where applicable any fees associated with your new mortgage. Our Adviser will help you budget to make sure that you do not over commit yourself, remember that you will also have other household costs to account for, such as Council Tax, Utility Bills, Food Shopping, Life Insurance, Buildings and Contents Insurance etc and if you are moving to a larger property these may well increase.

More about Home Mover Mortgages

Generally, as a home mover there will be more choice of lenders and mortgages available to you than you may have experienced as a first-time buyer. This may be because you have built up equity within your home and therefore have a larger deposit available or could simply be that your status has improved due to being a homeowner. Either way it is important that you capitalise on your position to ensure that you obtain the very best deal available to you. The easiest way to achieve this is by speaking with an Independent Mortgage Adviser. At Sovereign we believe in offering no nonsense jargon free advice from the whole market so you can always be assured that you are getting the very best deal.

It may be that moving your mortgage to a new lender will result in a better deal or it may be that staying with your current lender would be more appropriate, either way we will offer you independent advice based on what is best for you, not the lender. If you would like more information please contact us.

Re-Mortgaging

Re-Mortgaging simply means switching from your current mortgage lender to another; this is normally done to achieve a better rate of interest and ultimately to save money. It can also include borrowing additional funds, this is known as 'capital raising' and the extra money may be used for any number of purposes the most common of these are for:

• Home Improvements - such as an extension, new conservatory, replacement kitchen/bathroom or redecoration.

• To invest in another property - release equity to provide a deposit. This could be to help a family member to purchase a property or it could be to purchase a second home or a Buy to Let.

• For other personal reasons - such as holidays, weddings/anniversaries, buying a new car or 'consolidation' of more expensive credit cards and loans.

Each lender has different criteria as to what they will allow you to borrow extra money for and we can advise you on each lender's particular requirements.

The process of re-mortgaging typically takes between four to six weeks to complete and there may be costs involved, including Valuation and Legal fees. However, there are a number of 'fee-assisted' re-mortgage packages available through leading lenders that will either pay for or refund most of these costs.

As an alternative to re-mortgaging, either a 'further advance' from your current lender or a 'secured loan' from another lender may be appropriate.

Before anything else, our Adviser will discuss your needs and objectives to assess the most appropriate course of action and will then make a recommendation.

Secured Loans

A secured loan is similar to a mortgage in so much as your property is offered as security against the loan. The lender will take a second charge against your property, which means that their interest will be noted on your deeds below that of your mortgage lender.

A secured loan may be appropriate where your current lender is either, unwilling or unable to help you and may avoid the cost early repayment fees.

Unlike personal loans, which are unsecured and generally need to be repaid over a relatively short term often between two and five years, secured loans can be spread over the term of your main mortgage making repayments lower.

Monies can generally be raised for any legal purpose and lenders criteria can be more generous often allowing more money to be raised than would be available from a normal mortgage. If you would like more information please contact us.

Buying for Investment - Buy to Let

'Buy to Let' is the term used for a specialist mortgage designed for people who wish to invest directly into property. These mortgages enable investors to buy a property with the intention of renting it out. Investors can benefit from an income and possible capital appreciation.

The criteria for 'Buy to Let' mortgages is very similar to that of residential mortgages, however rather than calculating how much you can borrow based on your income, lenders will normally base their lending on the expected rent that the property will generate. This will be assessed by a survey of the property. Lenders use different calculations to assess how much they will lend and our Advisers will be able to give you advice on their individual requirements.

As purchasing an investment property is a specialist field and not suitable for everyone, it is paramount that you speak with one of our Advisers to discuss your circumstances and requirements to ensure that your goals are achievable.

We will give you advice on buying a suitable property, however, we strongly recommend that you seek professional advice from a Solicitor and an Accountant concerning both the legal and tax implications involved in purchasing an investment property. We would also advise you talk to a Letting Agent about the suitability of any likely property and its estimated rental value.

Note: Most Buy to let mortgages are not regulated by the Financial Conduct Authority.