Mortgage Information
Which Mortgage is Best for Me?
At Apple Mortgages Limited we offer a wide and varied range of bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage and remortgage products to accommodate the diverse needs of our applicants. Each clients circumstances and needs are unique the client themselves however we have provided the basic details below to help you, our prospective new client, make a more informed choice about what bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage may be best suited for your circumstances.
What Is A Fixed Rate Mortgage?
A fixed rate mortgage is where the interest rate is held for a pre-set period of time and the rate will be held regardless of any fluctuations in the rate.
With a fixed rate mortgage your payments will remain the same for as long as the mortgage is fixed (typically 1-5 years).
At the end of the fixed period the bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage will change to a variable rate. You will be able to remortgage at this time should you choose, however early redemption penalties may apply.
Variable Rate Mortgage (Tracker)
With a variable rate mortgage, your interest rate is linked to the Bank of England's base rate or with some lenders the rate may be linked to LIBOR which stands for London Interbank Offer Rate and moves up and down in line with it.
This means that if the base rate rises by .25% or lowers by .25%, the interest rate on your bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage (and your monthly payments) will rise or lower by a corresponding amount.
Discount Rate Mortgage
A discount rate mortgage is essentially a standard variable rate mortgage, so it still moves in line with the Bank of England's base rate, but it also has a discount thrown in for a set period of time (typically 1-5 years.)
An example would be a lender offering 2.0% off of their standard variable rate for a 2-year period.
With a discounted rate the rate and the mortgage payments can fluctuate in line with change in the base rate but the underling rate will always be discounted by the discount that was agreed at the outset and for the period that was agreed at the start of the mortgage.
Repayment Method
There are two main repayment methods that you can consider when taking a new bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage.
A Repayment Mortgage.
Your monthly payments gradually pay off the amount you owe as well as paying the interest charged on the loan. Provided you make all the agreed payments, the loan will be fully paid off by the end of the mortgage term and you will own your property outright.
An Interest Only Mortgage
Your monthly payments cover only the interest on the loan. They do not pay off any of the original loan. You will need to arrange to pay separately into a savings or investment scheme (e.g. pension mortgage or endowment) to build up savings to pay off the mortgage at the end of the term. It is your responsibility to make sure you have enough money to repay the bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage at the end of the term; otherwise you could lose your home.
Do I Qualify?
Apple Mortgages Limited can help people with a wide range of personal circumstances but our main focus is on helping people who may have experienced credit problems or alternatively may have difficulties providing proof of income.
Our experience in the specialised sector has taught us that occasionally nasty event such as CCJs, rent and mortgage arrears happen to genuinely nice people, possibly through no fault of their own. We are happy to be able to provide a service that can solve problems and give our clients access to the bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage funds that they require
Mortgage Terms and Jargon Buster.
Apple Mortgages Limited the uk mortgage brokers have compiled this glossary of terms to give a greater understanding of those everyday terms that are so often surrounded in mystery and jargon. These are not legal definitions but clear everyday descriptions in plain English to help you understand the bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage process more easily.
APR
Abbreviation for Annual Percentage Rate. Where an APR is quoted it will be based on the total charge for credit.
Assignment
A legal transfer of rights or benefits, e.g. in your bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage, a lease or life assurance policy.
Bad Credit Mortgage.
A bad credit mortgage is a mortgage designed to assist people with a bad credit record to secure mortgage funding. For instance if the applicant has a poor credit rating due to CCJs, credit defaults, rent arrears, mortgage arrears or bankruptcy this would be classed as requiring a bad credit mortgage. UK mortgage brokers Apple Mortgages Limited have experience in providing solutions in such cases.
Buildings Insurance.
With all bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage lenders this insurance is compulsory but you can arrange the insurance your self and Apple Mortgages Limited will also be on hand to provide a competitive quotation. The insurance covers the building that you reside in against damage by such things as fire, flood, subsidence and other items listed in the policy. The exact amount of cover you need will be set by the valuer and you will be made aware of this by the mortgage lender in the mortgage offer. If you are arranging your own insurance please ensure that the appropriate cover is in place seven days before completion.
Buy to Let Morgage.
This type of mortgage is aimed at those purchasing an additional property with the intention of letting it out. This is similar to a conventional mortgage but usually has an easier application process. This type of mortgage is not regulated by the FSA in the way that residential mortgage are. UK mortgage broker Apple Mortgages Limited has access to a wide range of buy to let products.
Cash Back Mortgage.
This is an amount of money, either a set amount in pounds or a percentage of the loan. The "cash refund" is then give to the client on completion. Cash back can be had on all types of bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage subject to availability.
Certificate of Title
The document prepared by the solicitor for the lender confirming all formalities are satisfactory, prior to completion.
Charge
Secured lending on the property. Most bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgages are classed as secured lending.
Completion
The formal conclusion of the transaction when the bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage monies are handed over and legal formalities are dealt with.
Consumer Credit Act
This is Government legislation (an Act) that governs certain secured and unsecured lending under the supervision of the DTI.
Contents Insurance
Contents insurance is not compulsory but is nevertheless advisable. This covers your personal belongings and furnishing etc. Cover can be extended to include other liabilities such as jewellery, cameras, and cycles.
Contract
A legal agreement between purchaser and seller, setting out the terms on which the sale is to be made.
Conveyance
The act of transferring the property from the existing owner to the next owner.
Credit Scoring
A technique based on a points system that gives the applicant a points according to certain historical and current circumstances, such as the length of time in employment and the type of occupation they are in. The lender uses the points total to assess the degree of risk exposure and will than decide if they can accept an application for mortgage. Some of the major lenders reject 50% of all applicants on credit score alone.
Disbursements
These are the bills that your solicitor has to pay out on your behalf to conclude the transaction, e.g. local authority searches, land registry fees etc. Such amounts are over and above the solicitor's legal charges.
Early Repayment Charge
This is charged if the loan is repaid prior to a set period as laid down in the terms &conditions of the loan.
Endowment
An investment vehicle combined with life assurance over a specific term. Typically used in conjunction with an interest only mortgage.
Equity.
The difference between the value of the property and the amount of mortgage outstanding. NB can be positive or negative.
Feuhold
The Scottish term for the right to absolute ownership in land.
Full Status Mortgage.
This term applies to mortgage clients who can prove the amount of income they earn and the income is sufficient to meet the lenders standard requirement for income multiples.
Freehold
The right of absolute ownership in land.
Ground Rent
An annual sum paid as a rental for the ground on which the A hunting fund is usually associated with buy to let mortgages, and the term property stands.
Hunting Fund
"Hunting fund" refers to reserve fund allocated to the buy to let client to allow them to purchase additional property more easily with the minimum of paperwork. Apple Mortgages Limited uk mortgage brokers can provide access to this type of scheme.
Higher Lending Charge
A single premium policy, paid for by the borrower on completion of the mortgage. It insures the lender for losses in excess of a percentage of the loan-to-value sum. The borrower still remains liable for any amount claimed.
Impaired Credit Mortgage.
This type of mortgage is often referred to as a bad credit mortgage where the client has credit problems such as CCJs and other problems that would prevent them getting a full status mortgage. In these cases uk mortgage brokers Apple Mortgages Limited will ask the lender to take a flexible approach to the clients circumstances.
Interest Rate
This is the rate at which the interest charged on your mortgage is calculated.
Land Registry Fee
A fee paid to H.M. Land Registry to register changes to the title e.g. new ownership.
A Lease
A contract with rights and obligations between freeholders and tenant. The freeholder grants the tenant a leasehold interest in the land.
Leasehold
A right to exclusive possession of land for a fixed term of years, where a third party owns the freehold.
Loan to Value
This is the ratio, which expresses the size of the loan that you can borrow as a defined as a percentage of the property price. Apple Mortgages Limited uk mortgage broker/ bad credit mortgage broker can provide access to loans of up to 125% of the property value. I.E. 125% LTV.
Local Authority Search
A search made by the purchaser's solicitor at the local authority for the area in which the property is situated. This search would reveal detail such as the maintenance responsibility of roads and footpaths serving the property, road proposals in the immediate vicinity, whether the property is connected by the mains drain, any planning matters affecting the property or which could adversely affect the property in the future.
Mortgage
A loan that is secured on your property.
Mortgage Conditions
These are usually contained in a lenders booklet, which together with the terms of your offer (see: standard offer conditions) form the basis of the terms and conditions of your mortgage following completion.
Mortgage Offer
The document which states that the lender is prepared to offer a bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage for the purchase or remortgage of a property. This document will give details on the exact amount of money that will be lent to you and on what terms.
Mortgage Payment Protection
(Also known as Mortgage Repayment Protector). An insurance policy designed to cover mortgage payments during uncertain financial situations caused by illness, accident or involuntary unemployment.
Panel Valuer
An independent valuer with whom a lending institute is prepared to arrange inspections of property to determine the adequacy of security for loans.
Remortgage
Mortgaging a property you already own, usually replacing an existing mortgage. You can remortgage to obtain lower monthly payments or if you have sufficient equity in your property to raise money for a number of purposes.
Retention
An amount kept back from the bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage by the lender until certain works or other requirements to the property are complete.
Right To Buy
A government scheme introduced by act of Parliament (The Housing Act 1980) to allow council tenants paying rent to make an application to buy their council home for the local authority, public sector landlord or housing association.
Sealing Fee
Charge made for discharging the mortgage.
Secured Loan
A secured loan is a loan secured on a property. A second charge is a loan that is secured on a property but is in second place to the main mortgage, which is classed as the first charge.
Self Cert Mortgage
A self cert mortgage or a self certification mortgage is where the lender allows the applicant to self declare what they earn.
Solicitor
The lawyer who represents the parties in a transaction who takes care of all the legalities.
Special Conditions
These are the conditions specific to your bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage and are contained in your mortgage offer or can also be contained in the Right To Buy offer form the local authority.
Stamp Duty
This is a tax payable on purchases above a level set by the government. The amount depends on the purchase price of the property. Stamp duty may also be payable upon a remortgage where there is a transfer of ownership.
Standard Offer Conditions
These are printed conditions, which together with any special conditions, the mortgage offer and the mortgage conditions, form the terms of the bad credit mortgage, self cert mortgage, commercial mortgage or right to buy mortgage or other mortgage.
Telegraphic Transfer Fee
This is charged made by the solicitor or the lender for sending sums of money electronically between banks.
Title
The right to ownership of land.
Title Deeds
The documents, which prove the title. These may be in the form of conveyances or may be an extract of the records held at H.M. Land Registry.
Title Insurance
This is an insurance policy that covers local authority searches and other legal documents. The use of this policy will speed up completion especially where cash back is being obtained under the right to buy scheme.
Transfer
The document that transfers the land where the title is registered.
Transfer Of Equity
The process of adding or removing a party from a mortgage.
Undertaking
A legal promise to complete a task.
Valuation Report
This is carried out on behalf of the lender and is purely to find out the suitability of the property for lending purposes. A mortgage valuation is prepared on behalf of the lender and may not be relied upon by you for any purpose. There are other valuation reports that are available to you and the mortgage consultant of Apple Mortgages Limited uk mortgage broker/ bad credit mortgage broker will be able to give advice on this subject.
Please Note:
The above details are intended as a guide for clients who are intending to apply to uk mortgage brokers Apple Mortgages Limited for a new mortgage, the new mortgage may be a bad credit mortgage, commercial mortgage, self cert mortgage, right to buy mortgage, or a 100% mortgage. What ever the mortgage facility you are seeking you are recommended to check all the written information that is presented to you in respect of the mortgage application for your new mortgage, self cert mortgage, adverse credit mortgage, commercial mortgage,100% mortgage or right to buy mortgage.
Clients are requested to check and double check the conditions of the mortgage offer before signing the mortgage offer and returning it to the uk mortgage lender who is providing the new right to buy mortgage, 100% mortgage, self cert mortgage, commercial mortgage, adverse credit mortgage or bad credit mortgage. If there are any questions that need to be raised the client should contact the lender or the uk mortgage broker/ bad credit mortgage broker Apple Mortgages Limited as soon as possible.