Our most frequent mortgage questions

Our most frequently asked mortgage questions

These top ten questions help give some guidance to buyers from all angles of the property ladder. If you have any questions that aren’t covered opposite or if you would like a little more clarification on any of the points discussed, our team of experienced advisors are on hand to help you through any part of the buying process.

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What is a mortgage?

A mortgage is a bank or building society loan that provides you with the funds required to purchase your property of choice. This can be held by an individual or jointly between more than one person. Your loan will be repaid over a number of years with interested added. Your length of repayments will be assessed based on your personal financial situation.

If you do not keep up your repayments the property may become subject to repossession.

Will I be accepted for a mortgage?

Each individual mortgage lender will have their own qualifying criteria, but as a general rule, the following areas are all common factors for consideration when assessing your mortgage application and deciding on the amount they will lend.

All mortgage lenders have their own criteria. The following factors all play a part in determining their mortgage offer and how much they are willing to lend to you:

• The amount you wish to loan
• How much you can put forward as a deposit
• Your income and employment status
• Your credit rating
• Any existing debts you may have
• Your regular outgoings
• Your age
• The length of the mortgage term you wish to take
• Whether you are a sole applicant or a joint application

You need to convince lenders you can maintain regular payments and complete the repayments of your mortgage. To analyse your capability, a credit report is used to check your repayment history. This will be based on reviewing previous and existing records such as other loans, mobile phone contracts, utilities, any credit cards you may have and any bank or building society accounts you have opened in within a six-year period. Should you have any CCJ’s, debt repayment plans, arrears or have declared bankruptcy, you still have mortgage options open to you and we can help you choose the best choice to suit your personal needs.

How does a mortgage application process work?

To be applicable for a mortgage you will require a deposit of at least 5% although a larger deposit will help secure you a better rate. If you already own a property and are looking to move, you can utilise the equity you have in your property for your deposit.

The next stage of the process is when you have found the property you want to buy. This is where our experts can help is assessing your personal circumstances and begin their search through hundreds of mortgage quotes. We also work closely with providers to secure exclusive deals to us, ensuring we are able to find exactly the right product and at the very best price.

Our advisor will present the product they believe is best for you and once you agree, you receive an AIP (agreement in principle). This gives you an estimated sum of how much the lender will let you borrow.

If your offer is successful you will need a solicitor that can process your searches, surveys and contracts through the remainder of the process. We can help you find a solicitor if you aren’t sure how to go about finding one. Our red-carpet service means that our team will handle the rest of the process between lenders, solicitors to make it as easy for you to prepare to move into your new home.

If your application is to remortgage, it is always worth starting the process early to make sure that we can tailor your new deal to fall in line with the end of your new one, again once we have found the right product for you, our red-carpet service means we handle the rest.

How much can I borrow?

Usually you will be able to borrow up to five times your annual salary from mortgage lenders. Elements such as your age, dependants and financial commitments will affect your loan amount. A lenders loan amount will be based generally on you much can afford each month after you have settled any other financial obligations.

Our advisors will talk you through your financial situation and help you understand how much you will be able to afford before any credit searches or applications are carried out.

How much will I need as a deposit?

You will need to place a deposit of at least 5% however, the more you can place down as a deposit the better the rate will be for your mortgage. There are a few exceptions to this.

- If you already own a home, you can use the equity in your property for the deposit.

- If you are a council tenant and wish to buy under the right to buy scheme, the majority of mortgage lenders will accept your discount through the right to buy scheme as your deposit.

With property prices increasing, it’s becoming harder for first time buyers to save the amount required for their deposit. To help first time buyers get onto the property ladder the government has introduced the help to buy scheme.

What other costs are linked with buying a house?

As well as having enough for a 5% deposit, you will also need to ensure that have enough funds to cover mortgage and legal fees as well as costs associated with your move. These will of course fluxuate based on your mortgage lender, value of the property and your budgeting. But o help you understand in a little more depth, below are a list of common fees you should account for:

MORTGAGE BOOKING FEE – (£99-£250)

This is a fee some lenders charge to secure a fixed rate deal

MORTGAGE ARRANGEMENT FEE – (£1000-£2000)

A mortgage arrangement fee can be applied to some products and is separate from your mortgage booking fee. This will either be paid up front or in some cases can be added to your loan amount, however, if added to your mortgage, this will increase over the lifetime of your mortgage.

TELEGRAPHIC TRANSFER FEE – (£25-£50)

This needs to be paid to the lender to transfer the loan amount to the seller’s solicitor

MORTGAGE BROKER FEE – (£95-£495)

If you use a mortgage advisor to arrange your mortgage, you will need to pay a commission depending on the value of your mortgage.

VALUTATION & SURVEY FEES – Varying from £250 - £600

The cost of a survey can vary, the more basic survey often used on new builds can start at £250 up to a building survey, used for older and more unconventional buildings. These full building surveys are the more expensive starting around £600, but can save you money down the line should you find any structural issues.

HIGHER LENDING CHARGE – Approx. 1.5% of the amount borrowed

This is a fee that can be charged by lenders if you are borrowing most of the volume of the property

SEARCH: (£250-£300)

Your solicitor will contact your local authority to check for any issues that could affect a property’s value. When the local council can sometimes charge for these search’s and also request a drain search is carried out.

LEGAL COSTS – (£850 - £1500 + VAT)

This covers a range of work that your solicitor will need to carry out for you.

STAMP DUTY

Stamp duty land tax (SDLT) is charged on the purchases of all UK land and property over £125,000. The amount you will have to pay is based on the price of the house you are buying as well as if you have owned a property before. We have provided a quick breakdown below to help:

First home: In your first home, you are exempt on paying SDLT on the first £300,000 of a property up to £500,000. After £500,000 you will pay the tax below

£300,001 - £500,000 (5%)

Second home: For your second home or if you have owned a house previously you normally have to pay tax in larger increments
£0 – £125,000 (0)%
£125,001 – £250,000 (2%)
£250,001 – £925,000 (5%)
£925,001 – £1.5 million (10%)
£1.5 million+ (12%)
Further increases apply to additional properties you wish to own. These figures were accurate at the time of checks in 2017 but are subject to change and can be found at www.gov.uk/stamp-duty-land-tax/residential-property-rates

MOVING COSTS - £300-£600
Should you use a company to remove furniture and deliver to your new home, you can expect to pay anywhere between £300-£600, these figures will of course depend on the amount you need moving and the distant between properties.

What are the different types of mortgage?

REPAYMENT MORTGAGES:
Every month you make a payment which is calculated so that you pay off some of the capital you have borrowed, as well as the interest. By the end of your mortgage term, you would have repaid the entire loan.

INTEREST-ONLY MORTGAGES:
Each month you pay only the interest on your mortgage and repay the capital at the end of your mortgage term. This option will not suit everyone, as you will need to guarantee that you can find the money when the time comes. If you don’t, you risk having to sell your property to pay off the mortgage. Lenders can also insist that you provide evidence on how you intend to do this.

FIXED RATE MORTGAGES:
Popular with first time buyers, as you know exactly how much you’ll be paying each month for a particular length of time.
The disadvantages are that you may have to pay a higher rate if the interest rate falls, and a repayment charge if you either switch or pay off your mortgage before the end of the fixed term.
The lender will also automatically place you on a standard variable rate (SVR), which will probably have a higher interest rate, in which case you will need to apply for another fixed rate deal.

VARIABLE RATE MORTGAGES:
Also known as a Standard Variable Rate (SVR) and are every lender’s basic mortgage. The interest rate fluctuates, but never above the Bank of England’s base rate and is determined by your mortgage lender.

TRACKER MORTGAGES:
Vary according to a nominated base rate, normally the Bank of England’s, which you will pay a set interest rate above or below.

DISCOUNT RATE MORTGAGES:
Some of the cheapest mortgages around but, as they are linked to the SVR, the rate will change according to the SVR and are only available for a fixed period of time.
CAPPED RATE MORTGAGES:
A variable rate mortgage, but there is a limit on how much your interest rate can rise. However, as mortgage rates are generally low at present, many lenders are not offering them.

CASHBACK MORTGAGES:
Lenders typically give you a percentage of the loan back in cash. However, you need to look at the interest rate and any additional fees, as it is very likely that you will be able to find a better deal without cashback.

OFFSET MORTGAGES:
Combines your savings and mortgage together, by deducting the amount you have in your savings, meaning you only pay interest on the difference between the two. Using your savings to reduce your mortgage interest means you won’t earn any interest on them, but you will also not pay tax, helping higher rate taxpayers.

95% MORTGAGES:
Generally, for those with only a 5% deposit. However, as there is a risk that you may fall into negative equity if house prices go down, mortgage rates are usually high.

FLEXIBLE MORTGAGES:
Allow you to overpay when you can afford to. Other mortgages give you this option too, but you can also pay less at particular times or miss a few payments altogether if you have chosen to overpay. This does however come at a cost, as the mortgage rate will generally be higher than other mortgage deals.

What are they costs associated to a mortgage?

An average mortgage is made up of the following costs but there are some others you need to remember should you wish to make a change to your agreement, the following should cost most of these points:

INTEREST
This is the amount this gathers across the lifetime of your mortgage and is an agreed percentage in your mortgage offer.

MORTGAGE FEE
This is the product fee which is charged when you take out your mortgage.

APPLICATION FEE
This is a fee that is charged with every application and is not refundable if you choose not to take the mortgage.

VALUATION FEE
This may be charged by your lender if they need to work out the value of your chosen property.

HIGHER LENDING CHARGE
This can be applied if you only have a small deposit.

TELEGRAPHIC CHARGE
This is a charge that a bank will apply when transferring money that is being loaned.

BROKER FEES
A charge for using a broker to arrange your mortgage.

EARLY REPAYMENT
This may be applicable to certain products if you wish to settle the total amount before the agreed term of you mortgage.

EXIT FEE
This may be charged is you wish to switch lenders.

MISSED PAYMENTS
If you miss any of your payments these can be charged and will increase the total of your mortgage.

What if I have bad credit?

Even with bad credit such as CCJ’s, arrears, debt repayment plans or if you have had to declare bankruptcy, you still have mortgage options available to you. Even though they are limited and will affect your rate of interest, our experts can help advise on the best path for you.

How long will it take to get a mortgage?

A mortgage application approval relies on you, the broker, lender and solicitor. But our red-carpet service means we handle the relationship between all parties and reduce as much stress and hassle as possible for you in the process. A key factor that you can influence is having the documentation we will need from you. Your advisor will make you aware of all the information we require from you at first contact.

Remortgaging & Advice

What Is Remortgaging?

Whether you’re a long-time homeowner or new to the property market, you’ve probably heard of the term “remortgaging.” But what does it mean exactly?

Simply put, remortgaging is the process of switching your existing mortgage to a new deal. You can remortgage with a different lender or stay with your existing provider. You’re not moving house and your new mortgage is secured against the same property.

Remortgages are more common than you might think, with around a third of all home loans in the UK being remortgages. There are many different reasons why a homeowner might choose to remortgage. In most cases, it’s straightforward: to switch to a better deal and save money.

Just as when you originally secured your mortgage, remortgaging is a huge financial decision that requires careful thought, research and number crunching. So it’s always best to take advice from a fully-qualified and experienced mortgage advisor in order to survey the options that are out there and secure the best remortgage deal that suits you.

Huxley Mortgage Services are mortgage advisors in Cheshire who can give you the help and advice that you need.

Why Remortgage?

There are numerous reasons why homeowners choose to remortgage. The most obvious and common reason is to save money. Or, if your financial situation changes, you might be looking for a new deal that gives you more flexibility and control over your mortgage payments. Whatever your motive, there are many benefits to remortgaging.

To save money on your mortgage

While it might sound like a hassle, remortgaging is actually relatively straightforward and can potentially save you thousands of pounds over the term of your mortgage.

If you’re currently on a fixed rate mortgage (where you pay the same amount each month for a set period of time, usually two years or five years) and your fixed term is about to end, your mortgage will revert to your lender’s standard variable rate (SVR), which tends to be higher. Not only will this hike up your monthly mortgage payments, but it can make budgeting more difficult and unpredictable due to the fluctuating rate.

In this case, you’ll benefit from switching to a new fixed rate mortgage that offers you a lower interest rate and a fixed payment each month. Your current lender will likely contact you a few months before your existing fixed term ends to offer you a new deal (they want to keep you as a customer, after all!). But it won’t hurt to see what competing lenders can offer you.

Alternatively, if it’s been a while since you last reviewed your financial situation, you might be paying over the odds on your current mortgage when there are better deals are out there waiting to be taken advantage of, especially if your house has gone up in value.

In any case, remortgaging is an ideal opportunity for you to assess your finances, find the best deal based on your circumstances, and make significant savings on your mortgage.

To get more flexibility with your mortgage

Some mortgages (like an offset mortgage) are what’s known as flexible mortgages, allowing homeowners to overpay, underpay or suspend their mortgage payments altogether.

As the name suggests, mortgage overpayments are when you pay more towards your mortgage than the amount you agreed upon with your lender. An overpayment can be either a lump sum (perhaps from an inheritance) or an increase in your monthly payments (which you might do if you’ve had a pay rise).

If you’re in a position to do so, making overpayments on your mortgage can save you a lot of money in the long run. It’s simple math: the quicker you pay off your mortgage, the less interest you pay. Plus, you’ll bring yourself closer to washing your hands of mortgage payments altogether and owning your house outright.

However, it’s worth checking to see if your current mortgage allows you to make overpayments. Many fixed rate deals don’t let you pay more than 10% of your mortgage off within a year. If you do overpay, they’ll charge you between 1% and 5% of the amount you overpaid.

In this case, you’ll benefit from remortgaging and finding a deal that gives you the flexibility you need without the strict limits or penalty charges.

Likewise, some flexible mortgages allow you to underpay your mortgage or take “payment holidays” (where you suspend mortgage payments altogether) for a short period of time. This can be useful if your financial situation changes. However, most lenders only allow this if you’ve made enough overpayments in the past.

You want to borrow more money

Remortgaging not only gives you the chance to find a better deal, it’s an opportunity for you to borrow a larger amount of money. Perhaps you want to fund home improvements, pay for a wedding or cover the cost of your child’s university tuition fees. Because you’re using your house as collateral, it’s a low-risk option for lenders, so remortgaging allows you to borrow more money — and at lower interest rates — than a personal loan.

However, be aware that remortgaging for a larger amount of money will cost you more in interest payments in the long run.

How We Can Help If You’re Remortgaging

Mortgages are what Huxley specialise in. We’re an independent, whole of market mortgage brokers in Chester with access to over 140 lenders, meaning our experienced and fully-qualified advisors can help you find the right mortgage for you. Thanks to our contacts, we can offer you exclusive mortgage deals that you won’t be able to get by going direct to lenders.

Being a local independent mortgage broker means we always put our clients’ needs first. We’ll talk through everything face-to-face or over the phone (whichever you prefer) so we can tailor our service to suit your individual needs and circumstances. Our red-carpet service means we’ll give you constant updates throughout the entire process and offer you evening and weekend appointments seven days a week while managing your remortgage from start to finish.

If you’re looking to remortgage your home in the Chester area, get a free remortgage quote or get in touch today.

First-Time Buyers

What Is A First-Time Buyer?

A first-time buyer is someone who is buying their first house and doesn’t own — or has never previously owned — another home. A first-time buyer can also be a couple who are buying their first house and neither of them owns or have previously owned property. Sounds pretty straightforward, right? Unfortunately, there are some grey areas when it comes to first-time buyers.

If you’re buying your first house and you own, or have previously owned, a commercial property (like a shop, bar or restaurant), you still qualify as a first-time buyer. This can be slightly confusing, because you’ve technically bought property in the past. But first-time buyer relates only to homes.

However, if your commercial property has or had living quarters attached to it, you’ll no longer qualify as a first-time buyer.

Who Isn’t A First-Time Buyer?

Obviously, if you currently own or have previously owned a house, you aren’t a first-time buyer. If you’re a couple and one of you owns or have previously owned a home, you also won’t be first-time buyers.

If you’ve inherited a house or someone (perhaps your parents, if you’re lucky) has bought a house for you in the past, you also don’t qualify as a first-time buyer. Yes, even if you didn’t buy it yourself. This is where the “buyer” part can be a bit misleading.

You also don’t qualify for first-time buyer status if you’re planning to rent out the property you’re buying (what’s known as a buy-to-let).

What You Need To Know As A First-Time Buyer

Buying your first home is an exciting time, but it can also be a daunting and confusing process. You’ll only ever be a first-time buyer once in your life and the decisions you make will have a huge impact on your medium and long term future. This is why it’s important to speak to the experts before making a choice. Huxley Mortgage Services are mortgage advisors in Chester who can give you the help and advice that you’re looking for.

Here are the biggest factors you need to consider before buying your first home.

Save enough money for a deposit

Ideally, you want to put down a deposit equal to at least 10% of the price of your house. The bigger the deposit you put down, the better mortgage rates you can get, and the less you’ll pay in the long run. Some mortgage lenders accept 5% deposits, but you’ll be offered less competitive interest rates. If you’re seeking a large mortgage with a small deposit, you might face a Higher Lending Charge, which is used by your lender to take out an insurance policy that protects them should you default on the mortgage.

Find the best mortgage

For the uninitiated, a mortgage is a loan you get from a bank or building society to help you buy a house. You, as the borrower, has to pay back the loan (plus interest!) over a set period of time, typically 25 years.

In order to secure a mortgage, you’ll need to provide your lender with thorough financial information (your income, outgoings, credit history etc) to prove to them that you’re able to keep up with your mortgage payments.

There are many different mortgages out there for you to choose from. If you want to pay a set amount each month, you can get a fixed rate mortgage. If you want to try your luck with fluctuating interest rates, you can choose between a tracker mortgage or a discount mortgage. An offset mortgage allows you to use your savings to reduce your interest payments, while a flexible mortgage gives you the option of paying more, paying less or taking a “payment holiday.” You can even choose between paying back the loan and the interest each month (repayment mortgage) or just the interest (interest-only mortgage).

Which mortgage you choose all depends on the amount of money you’re borrowing, your attitude towards interest rates and how much risk you want to take.

What Are The Benefits Of Being A First-Time Buyer?

While buying your first home can be a daunting process, being a first-time buyer actually comes with plenty of perks.

Government schemes to help you buy your first home

In 2013, the Government introduced Help to Buy, a scheme to help first-time buyers get on the property ladder. The scheme is multi-faceted and can help first-time buyers in different ways, depending on their circumstances.

Help to Buy ISA — Where the government boosts your savings by 25% to help you buy a house. In other words, for every £200 you save for a deposit, the government will give you £50. The maximum bonus you can receive is £3,000 on £12,000 savings.

The Help to Buy ISA is available to each first-time buyer, not each household. So if you’re buying a house with your partner, you could double the amount you get from the Government, earning up to £6,000 in bonuses.

However, the Help to Buy ISA officially ends on November 30, 2019, and will be replaced by the Lifetime ISA.

Lifetime ISA — Replacing the Help to Buy ISA from December 1, 2019, the Lifetime ISA also boosts your savings by 25%. You can put in up to £4,000 each year until you’re 50, and the government will pay out a 25% bonus on your savings, up to a maximum of £1,000 per year. However, you’ll only be eligible if your house costs £450,000 or less, and you’re buying the house at least 12 months after you opened the Lifetime ISA.

Help to Buy Equity Loan — If you’re buying a newbuild house worth up to £600,000, all you need to do is cover 80% of the price through a deposit and mortgage, and the Government will loan you the remaining 20%. You don’t pay any interest fees on the government loan for the first five years of owning your home. This could be a 5% cash deposit and a 75% mortgage, making it ideal for those with a small deposit.

Help to Buy Shared Ownership — If you’re a first-time buyer who can’t afford to buy a home, this scheme offers you a solution. It gives you the chance to buy a portion of your home (between 25% and 75% of the home’s value) and pay rent on the remainder. You can always buy a bigger share of the property in the future. Typically, Shared Ownership properties are sold through resale programmes from housing associations and are always leasehold.

Right to Buy and Right to Acquire — These are two similar schemes that allows council tenants and housing association tenants to buy their rented council home at a discount. There are different criteria you have to meet, though. Right to Buy is only available if you’ve had a public sector landlord (for example, a council or housing association) for a total of three non-consecutive years, while Right to Acquire stipulates that your property must have been owned by your housing association after 31 March, 1997.

Stamp Duty relief

Stamp Duty Land Tax is the tax you pay when you buy a property over a certain price in England and Northern Ireland. The higher the value of your house, the more tax you have to pay. The standard Stamp Duty tax rate currently looks like this:

0% tax on the first £125,000.
2% tax on the portion from £125,001 to £250,000.

5% tax on the portion from £250,001 to £925,000.

10% tax on the portion from £925,001 to £1.5 million.

12% tax on the portion above £1.5 million.

If you’re a first-time buyer, however, you’re eligible for Stamp Duty relief, meaning you will pay less tax or no tax at all, depending on the value of your house. Here’s what the Stamp Duty rates look like for first-time buyers:

0% tax on the first £300,000 of your house.
5% tax on the remainder up to £500,000 (the portion from £300,001 to £500,000).

If your property is worth over £500,000, you won’t be eligible for Stamp Duty relief, so you’ll pay the standard Stamp Duty rates.

How We Can Help If You’re A First-time Buyer

Buying your first home is a special milestone in anyone’s life, but it can also be a daunting and complicated process. You’ll only ever be a first-time buyer once and the decisions you make can have a huge impact on your financial future. Huxley Mortgage Service is here to guide you through the entire process and give you the best possible start on the property ladder.

We’re an independent, whole of market mortgage brokers in Cheshire with access to over 140 lenders, meaning our friendly and fully-qualified advisors can help you find the perfect mortgage for you. Using our contacts and experience, we can offer you exclusive mortgage deals that you won’t be able to get by going direct to lenders.

We pride ourselves on putting our clients first and really getting to know their individual needs and circumstances. Our red-carpet service means we’ll manage the mortgage process from start to finish while giving you constant updates and offering you evening and weekend appointments, seven days a week.

If you’re a first-time buyer looking for a mortgage in the Chester area, we recommend our no-obligation free mortgage quote or getting in touch with us today to find out more about our services.

Discuss Your Options

Moving Home

What Are Your Mortgage Options When Moving Home?

Moving home is an exciting time, but it requires plenty of planning, research and organisation, not to mention expenses. Selling your current house and finding a new home to buy (while managing the dreaded property chain) is difficult enough. On top of this, there’s an important question that needs answering: what do I do with my mortgage?

Here are the mortgage options that are available to you when moving home:

You can transfer (or “port”) your existing mortgage to your new home

These days, most mortgages are “portable,” meaning you have the option to transfer your current mortgage across to your new home. However, you effectively have to reapply for your current mortgage, meaning you have to go through the rigorous checks all over again. If your financial situation has remained in good shape since you originally took out your mortgage, you should be fine. But if you’ve accumulated debt or bad credit history, for example, you may fail to qualify for a mortgage.

Porting your mortgage might be the most sensible option if you’re still in the initial term of your mortgage. If you switch mortgages within this term, you could face both an exit fee (between £75 and £300) and an early repayment charge (between 1% and 5% of your mortgage).

However, if you’re on a standard variable rate — the default rate lenders will place you on after your initial term expires — sticking with the same deal could mean you’re missing out on more competitive options that are out there in the marketplace. In this case, remortgaging will be more beneficial.

You can remortgage

Remortgaging is when you switch your current mortgage to a new deal. You can stick with the same lender or test the waters and see what different providers can offer you. When moving house, you’re likely to remortgage for one of two reasons.

If your new home is more expensive than your current house, you’ll need to borrow more money to cover the cost. Your current lender might offer you a further advance on your existing mortgage, but this is usually at a different rate. In any case, a bigger mortgage will likely mean higher rates, so you’ll need to prove to your lender that you can afford to keep up with payments.

Alternatively, it might make sense to remortgage if you’re downsizing (unless you can afford to buy your new house outright, of course). Depending on the amount of your outstanding mortgage and any other debts you may have, moving into a cheaper house will probably free up some capital. You can then use this money to put down a larger deposit on your new home, lowering your loan-to-value ratio and getting lower interest rates.

Whatever your financial situation, you’ll need to crunch the numbers before pulling the trigger. Remortgaging isn’t free; there are fees involved with taking out a new mortgage and charges associated with leaving your current deal.

How We Can Help If You’re Moving Home

Finding the right mortgage requires careful thought, planning and number crunching. In the middle of a house move, it can be hard to find the time to do this. At Huxley Mortgage Services, we’re here to help you find the most suitable mortgage for your situation, so you can focus on moving home.

We’re independent, whole of market mortgage advisors in Chester with access to over 140 lenders, meaning we can select from a wide range of options that you won’t be able to get by going direct to lenders. Our fully-qualified and experienced advisors will guide you through the process and help you find the right mortgage for you.

Our red-carpet service is here to make your potentially stressful house move as seamless as possible. We’ll provide you with constant updates through the entire process, as well as the option of evening and weekend appointments seven days a week, while managing your mortgage from first contact to completion.

If you’re moving home in the Chester area and looking to remortgage, get a free remortgage quote from us or get in touch with us today.

Buy-To-Let

Buy-to-let is when someone purchases a property with the purpose of renting it out to tenants. Typically, these properties are houses or flats. Renting out a buy-to-let property can be a highly profitable and sustainable source of income, but it also comes with a lot of demands, costs and risks.

Before investing in a buy-to-let property, there are several factors you need to consider. You need to calculate the potential rental yield of a property, which measures the ongoing return on investment (in other words, how much money you’ll make off rental income). You also need to assess a property’s capital growth, which is the amount its value will increase or decrease over time. This is influenced by the changes or improvements you make to the property, the local area and the property market as a whole.

What Are Buy-To-Let Mortgages?

As with any property purchase, you’ll likely need a mortgage to be able to make your landlord dream a reality. Buy-to-let mortgages are a lot like ordinary mortgages, but with a few key differences. It’s more difficult to be approved for a buy-to-let mortgage than it is for a traditional one.

Here are the things you need to know about buy-to-let mortgages:

They have higher fees.
They have higher interest rates.
They require a larger deposit, usually around 25% of the amount you’re borrowing.
Your need to earn at least £25,000 a year in personal income in order to reassure your lender that you can cover the high costs of being a landlord.
Your expected rental income needs to be 25 – 30% higher than your mortgage payments.
You need buildings insurance on your buy-to-let property. Some policies allow you to add further properties later on, which is useful if you have a long-term plan in mind.
Most buy-to-let mortgages are interest-only, meaning you only repay the interest each month, not the loan itself. When the mortgage term ends, that’s when you’re expected to pay back the full amount. This makes the monthly payments cheaper, but leaving yourself with a sizeable debt to pay off in one go is obviously risky.

How We Can Help If You’re Buying-To-Let?

Whether you’re a seasoned landlord or investing in your first rental property, Huxley Mortgage Services can help you to secure the most suitable buy-to-let mortgage and make your dream of becoming a landlord a reality.

As independent Cheshire mortgage brokers, we have access to more than 140 lenders, giving us a wide selection of options to choose from in order to find the right mortgage based on your individual needs and circumstances. With our strong contacts, we can even offer exclusive deals that you won’t get by going direct to lenders.

Our red-carpet service means we always put our clients first. We’ll give you constant updates throughout the entire process, make ourselves available to you on evenings and weekends seven days a week, and manage your commercial mortgage from start to finish, so you can focus on being the best landlord you can be.

If you’re looking for a buy-to-let mortgage in the Chester area, get a free buy-to-let mortgage quote or get in touch at 01244 955 399.

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Bridging Loans

What Is A Bridging Loan?

A bridging loan is a short-term loan used by property buyers to “bridge the gap” between the sale of their current home and the purchase of their new house. It’s a flexible and accessible financial solution, secured against your property, that helps you get from A to B.

Bridging loans can be useful if you want (or need) to move house quickly without waiting to complete the sale of your current property; if property chain issues are delaying — or threatening to derail — your house move; or if you’ve found your dream home and don’t want to risk it being snapped up.

Bridging loans are also popular amongst property developers as a way to finance their projects, people who buy property at auctions (where you only have 28 days to produce the funds), and homeowners funding a refurbishment or extension.

What Types Of Bridging Loans Are Available?

There are two types of bridging loans. A closed bridging loan requires you to explain how you’ll repay the loan and agree upon a fixed date to do so, usually within a few months. This is called an “exit plan.”

An open bridging loan, on the other hand, doesn’t have an exit plan. You aren’t required to explain how you’ll repay the loan, meaning you’ll receive the funds much quicker (which is useful if you need the money urgently). You’re also given a longer and more flexible window to repay the loan, typically up to a year.

Bridging loans are available with a fixed rate or a variable rate. Because they tend to be shorter than other loans, the interest is charged monthly as opposed to using an annual percentage rate (APR). You can pay the interest on a bridging loan in three different ways:

Monthly basis — Where you pay the interest each month and it is not added to the amount of your loan.

Rolled-up deal — Where, instead of paying interest each month, your interest payments are “rolled up” and you pay them in one lump sum at the end of the agreed upon term, along with the full loan amount.

Retained interest — Where you borrow the interest from the bridging lender when you apply for the loan. You then pay everything back at the end of your term.

What Are The Benefits Of A Bridging Loan?

There are numerous advantages of taking out a bridging loan, depending on your needs and circumstances.

You get the money fast — While other loans can take weeks to be approved, you can get a bridging loan in a matter of days. However, it depends on how much money you’re borrowing and what you’re using it for.

You can borrow a large amount of money — Bridging loans allow you to borrow between £5,000 and £250 million, depending on the value of the property you’re securing the loan against. The more properties you put forward, the more money you can borrow.

Flexibility — An open bridging loan, in particular, offers plenty of flexibility. You can get the money quickly and have up to a certain period of time to pay it back, as opposed to a fixed date. Plus, you can choose your interest rate (fixed or variable) and how you’ll pay it (monthly, rolled-up or retained interest).

How We Can Help If You Need A Bridging Loan?

Whether you’re looking to fund a property development, pay for home improvements or need to bridge the gap during a house move, Huxley can help you secure a bridging loan that suits your individual needs and circumstances.

We’re an independent, whole of market mortgage brokers in Cheshire with access to more than 140 lenders and a team of reliable and fully-qualified advisors who will guide you through the process of securing a bridging loan. Our red-carpet service gives you constant updates, evening and weekend appointments, and the peace of mind that your bridging loan is being handled by professionals.

If you’re looking for a bridging loan in the Chester area, get in touch with Huxley today.

Commercial Mortgages

What Are Commercial Mortgages?

As the name suggests, a commercial mortgage is a loan secured against a property that you’re using for commercial purposes. It can’t be used to purchase a residential property. which isn’t your residence. You might take out a commercial mortgage to buy a shop, restaurant, warehouse, office or care home.

Commercial mortgages can be divided into two categories: owner-occupier mortgages, which are used to buy property that will be used as trading premises for your business; and commercial investment mortgages, which are used for property you’re planning to rent out.

Commercial mortgages are similar to traditional mortgages, but with a number of key differences:

Most commercial mortgages use a variable rate. They work similar to a tracker mortgage, charging a percentage over the base rate. However, fixed rate commercial mortgages are available and are best suited for buying properties under £500,000.
You’ll generally pay higher rates compared to residential mortgages. This is because they’re seen as higher-risk to lenders.
They can last from 3 to 25 years.
Most commercial mortgages only offer up to 70% of the total value of the property, meaning you need to put down a larger deposit.
Commercial mortgages usually offer better interest rates than regular business loans.

What Do You Need To Qualify For A Commercial Mortgage?

Because lenders view commercial mortgages as more risky than residential mortgages, there is a higher level or criteria you (and your business) needs to meet in order to be approved for one.

A lender will need to assess:

The financial health of your company, taking into consideration the cash flow of your business and any debts you may owe.
Your business’ projected income, which is used to determine whether you can cover the cost of the loan.
Your ability to pay the deposit, which is usually around 30% of the value of the property.
Any rental income that you might receive from the property as this will affect your business’ cash flow.

What Are The Benefits Of Commercial Mortgages?

Even though a commercial mortgage is the only type of mortgage you can get to purchase a commercial property, that doesn’t mean they don’t have their benefits.

The interest that you pay on a commercial mortgage is tax deductible.
You’re allowed to rent out the property to generate extra income.
A commercial property can earn you significant capital growth if its value increases.

Despite its upsides, commercial mortgages can be quite complex compared to traditional mortgages. Here are a few things you need to consider before seeking a commercial mortgage.

Because commercial mortgages typically only cover 70% of the property value, you need to be able to put down a larger deposit compared to a residential mortgage.

Your business will influence the deal. If you haven’t been trading for long, lenders may see this as a sign of high-risk and request personal guarantees.

You can still apply for a commercial mortgage if you have a bad credit rating, but you’ll probably end up paying a high interest to make up for the risk the lenders take.

How We Can Help If You Need A Commercial Mortgage?

Whatever type of commercial property you’re looking to buy, Huxley Mortgage Services can help you to secure the best commercial mortgage for your business.

We’re independent, whole of market mortgage advisors in Cheshire with access to more than 140 lenders, we have a huge selection of commercial mortgages to choose from, giving us the best chance of finding one that suits you. With our deep rolodex of contacts, we can even offer you exclusive deals that you won’t get by going direct to lenders.

Our experienced, reliable and fully-qualified advisors will get to know your needs and circumstances, and manage your commercial mortgage from first contact to completion. Our red-carpet service means you get constant updates throughout the entire process, as well as evening and weekend appointments seven days a week

If you’re looking for a commercial mortgage in the Chester area, get in touch with Huxley today.

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Secured Loans

What Is A Secured Loan?

A secured loan — commonly known as a homeowners loan — is a loan taken out against an asset that you own, i.e. property. It allows homeowners to borrow money using their current house as collateral. A secured loan can be a second-charge mortgage (if you already have a mortgage on your house) or a first-charge mortgage (if you own your house without a mortgage).

A secured loan is a useful option if you need to borrow a large amount of money (+£25,000), you’re looking for a longer loan term (+5 years) or you’re having trouble getting approved for a personal loan, perhaps due to poor credit. Secured loans are available with variable rates (where the amount of interest you pay each month fluctuates) or fixed rates (where you pay a set amount each month).

A secured loan can be beneficial depending on your needs and circumstances, but because you’re using your home as collateral, they’re riskier in nature.

There’s also such a thing as an unsecured loan. This type of loan doesn’t require you to put up your property (or any other asset) as collateral. Lenders see them as higher-risk, so they tend to be more expensive and you’ll need a strong credit rating to be approved. Personal loans are often unsecured loans.

Things To Consider Before Getting A Secured Loan

Taking out any type of loan requires careful thought, planning and number crunching. But due to the higher risk and potentially large borrowing sums of a secured loan, it’s critical that you make an informed decision before getting a secured loan. Here are some important things to consider:

Your financial situation — Can you afford to keep up with the monthly repayments? How likely is it that your lifestyle or financial situation will change in the near future? Are you looking to buy a house, plan a wedding or start a family? If something unexpected comes up like an urgent vehicle repair, do you have the available funds to pay for that and still meet your loan repayments?

The amount of equity in your home — Lenders will look at how much equity you have in your home before approving you for a secured loan. Your equity is essentially the difference between how much your house is worth and the size of your mortgage. The lower your mortgage, the more equity you’ll have. This lets a lender know how much money they could recoup by selling your home if you default on the loan.

What Are The Benefits Of A Secured Loan?

A secured loan has several perks and it can be a beneficial option depending on your needs and circumstances. Here are the advantages of a secured loan:

You can borrow a large amount of money — It can be difficult to borrow more than £25,000 with a personal loan. A secured loan, on the other hand, allows you to borrow up to £500,000, depending on the value of your property. This makes a secured loan a useful option if you’re planning major home improvements or paying for university tuition fees.

They have lower interest rates — Whether you choose a variable rate or a fixed rate, secured loans have lower interest rates than personal (or unsecured) loans. This is because a secured loan is taken out against your home and lowers the risk for lenders.

You can get a longer loan term — With a secured loan, you can stretch out the loan term over a longer period of time, usually between five and 25 years. This makes monthly payments more affordable and gives you flexibility. You can still take out a short-term secured loan from anywhere between one and five years.

They’re easier to secure — It’s easier to be approved for a secured loan. This is because you’re putting up your home as collateral, which lowers the risk for the lender. A secured loan is a useful solution if you’re having trouble being approved for a personal loan.

How We Can Help If You Need A Secured Loan.

Whatever reason you have for seeking a secured loan, Huxley can help you obtain one that best suits your individual situation.

We’re independent Chester mortgage advisors who have access to more than 140 lenders, giving us a huge range of secured loans to choose from, including exclusive deals that you can’t get by going direct to lenders. More choice means more chance of finding one that’s right for you.

As a mortgage broker that puts our clients first, our-red carpet service means you get regular updates, evening and weekend appointments seven days a week, and an experienced and fully-qualified advisor who handles your secured loan from start to finish.

If you’re looking for a secured loan in the Chester area, get in touch with Huxley Mortgage Services today.

Would you like us to get in touch to discuss your mortgage options?

Speak to us now 01829 738 808 or

Ruth Murray

We worked with Huxley Mortgage Services to remortgage 2 homes and purchase life insurance, (including changing one to a buy to let mortgage). We were given choices and all the facts and advice to make an informed decision. Mike and Jack ensured the process went smoothly, we were kept up dated all the way and they dealt with the solicitors for us so we did not have to worry or spend time making and receiving phonecalls. The team are easily contactable and always respond to queries promptly.

Kirsty Jones

I used Huxley Mortgage services for a re-mortgage. Siobhan and Nina took care of my re-mortgage and both ladies were well mannered, easy to contact and knowledgeable in their field. Siobhan explained easily (and without jargon) each part of the process to me and what to expect next. The whole process was seamless from start to finish and conveniently dealt with via email, which suited my hectic schedule. I can't recommend Huxley's enough and I will definitely be using them again in the future for my next mortgage or home purchase.

Debbie Jones

I have dealt with Mike and the team many times. They provide a very professional service, hassle free and easy. They are very knowledgeable in their fields and always aim to achieve the best for their clients. I have recommended them on many occasions to family and friends. Communication is great, professional, friendly and easy to deal with.

Jessica Markey

Harry and Jack have been an absolute pleasure to deal with. We had an offer accepted on a house before Christmas and had our mortgage offer accepted within 7 days! This is our first mortgage, so was expecting to deal with a lot more stress, but it has been completely painfree! We haven’t quite moved in yet, but both Jack and Harry are still working hard to ensure the process moves along quickly and smoothly. Wouldn’t hesitate to recommend.

Amy Howe

I recently used Huxley mortgage services, and would 100% recommend them. Jack and Harry Power did all the work for me which made the process stress free and so easy! I’ve now taken ownership of my lovely family home, thanks to this company. Thank you.

Josh Wilkes

The service we received from Mike and Jack was faultless. They were easy to talk to and explained everything in detail to us. They did everything they could to save us money on our mortgage and found us a way to not only save money on our mortgage but also on other outgoings. I would highly recommend them to anyone looking to get a mortgage or to re-mortgage. Will definitely be back in contact with them when it is time for us to re-mortgage again.

Emma Myers

I have recently used Huxley Mirtgage services for a re-mortgage. It’s a long time since I last took out a mortgage and I was quite apprehensive about the whole procedure. I needn’t have worried! I mainly dealt with Jack-who was well mannered, easily contactable and explained each part of the procedure to me, taking extra time in the parts that i didn’t understand.

Louis Kennedy

Huxley’s made buying our first home stress free! Jack & the team were always on hand to answer any questions we had and we always prompt coming back to us. Would highly recommend and will 100% use again. Thanks Michael, Jack, Harry & Nina for all your help, much appreciated.

Rick

The team at Huxley Mortgage Services are incredible! Just when I thought the ship had sailed Micheal stepped in and arranged a very competitive Mortgage within the hour and then throughout the process the the communication has been clear and concise and never too much trouble. Well done to all at Huxley's and a big thank you.

Geoff Cole

Great service from start to finish , always eager to help however small the question. Both Michael & Jack went out of their way to make the process ran smoothly from start to finish . I would have no hesitation in using Huxley’s again , tremendous service

Michael Harrison

Huxley mortgage services I have to say were fantastic from start to finish. Due to my wife and I just having a baby we thought we had left it to late to get the wheels in motion for an on time re-mortgage. Harry and Jack took all of the stress out of the entire process, any opportunity they had to reduce the amount of effort on our part was taken proactively and at no stage was anything to much effort for them. Our re-mortgage was completed on time and saved us having to pay an extortionate mortgage payment having just fallen into a standard rolling interest rate with our previous mortgage lender.

Natalie Aitken

I was referred to Huxley Mortgage Services through a friend and I would highly recommend them. They really do go over and above to make sure everything runs smoothly, even to the extent of picking my keys up for me from the estate agents. Jack, Harry and Nina kept me up to date at all times and were in regular contact. They are extremely professional and it really is a 5 star service that they provide I cannot thank them enough.

Hanna Clarke

Huxley Mortgage Services where impeccable throughout our mortgage process. Dealing with things quickly and efficiently. Explaining all processes so we understood. Going above and beyond to ensure everything was as it should be when it should. We would not hesitate to recommend to anyone and will certainly be using them again. Big credit goes to Harry and Jack. Thanks.

Gemma Holland

Very good experience dealing with Huxley. The lads that helped me (Jack, Harry and Mike) were very helpful and nothing was too much bother for them. They always replied to calls and emails straight away and made the whole process easy. Very thankful to them for their service. They also explained things very well and in simple terms, making it easier for me to understand. Definitely recommend them!

Petra Grimes-Williams

Excellent company. Our re mortgage went very smoothly. Will definitely recommend to family and friends

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