Case Study Five
Finding the right mortgage for Stephen and Michelle
Having rented in St Albans for a few years, Stephen and Michelle were ready to buy their first home together in London, where they wanted to be closer to work and the buzz of life in the capital. They found the prospect of buying their first home quite daunting, and were worried about the strict borrowing criteria which lenders had put in place since the credit crunch. Confused about how to go about finding the right mortgage for their needs, Stephen and Michelle came to us for advice.
Getting a foot on the ladder
With Stephen’s career taking off at a Central London Media Agency, and Michelle setting her sights on a successful career in Marketing at a well-known Consultancy firm, they were both earning a relatively good salary. Despite this, they knew that they needed to have a substantial sum of money for their deposit, before any lender would consider them for a mortgage. They had an idea of where they wanted to live and the type of flat they would like. With this in mind, they set themselves the goal of saving for a decent deposit, equivalent to about 25% of the value of the property. Having done so much of the hard work, they then gave us the challenge of finding the right mortgage to enable them to buy the flat that they had set their hearts on.
Finding the right mortgage
As we have access to so many lenders, we were able to search the whole market for the most suitable mortgage for Stephen and Michelle. The mortgage we recommended was a repayment mortgage, with the main benefit being that the capital will be completely repaid at the end of the term. With the Bank of England base rate at 0.5%, and thought to stay low for a sustained period, our recommendation was to go with a two year tracker mortgage. This meant that Stephen and Michelle would benefit, at least initially, from a low interest rate. Any increases were likely to be gradual, but if the Bank of England base rate were to increase, their payments would increase accordingly.
By understanding Stephen and Michelle’s financial situation, and determining what they were able to afford, we were able to find a mortgage plan to meet their needs and enable them to buy the flat they wanted. They now have a mortgage in place which they are able to comfortably repay over a period of 25 years. Along with the low interest rate, and competitive fees which we negotiated for them, Stephen and Michelle now have their feet firmly on the property ladder.
YOUR HOME MAY BE REPOSSESSED IF YOU DO YOU KEEP UP REPAYMENTS ON YOUR MORTGAGE.
WE ARE NOT LIMITED IN THE RANGE OF MORTGAGES WE WILL CONSIDER FOR YOU.
FOR MORTGAGE ADVICE WE CAN BE PAID A FEE, TYPICALLY £495 ON APPLICATION. WE WILL ALSO BE PAID COMMISSION FROM THE LENDER.
WE ARE NOT LIMITED IN THE RANGE OF MORTGAGES WE WILL CONSIDER FOR YOU
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