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In addition the interest rate charged is often lower than the usual Standard Variable Rates charged by the other more ‘traditional’ mortgage lenders

on a particular day a borrower has a mortgage balance of £50,000 and has £2,000 held in the current account

Advantages: Complete flexibility within the mortgage market allowing option to move from lender to lender should the opportunity to take advantage of more competitive rates elsewhere arise

TYPES OF MORTGAGE There are essentially two different types of mortgage: Repayment only, (capital and interest mortgage) Interest only, (ISA, pension or endowment mortgage) Repayment only

This tends to be between £25 - £50 and may be avoided if enough objections were made

Disadvantages: Unexpected increases in payments at term end

It provides no benefit to you, it is for the lenders protection only

Have there been any previous offers and what happened to the sale? Having had a previous buyer does not necessarily indicate that there is a problem with the property, but it does require investigation

Switching between provider can only be completed on an annual basis and penalties may be incurred

You can choose cover according to your needs

insurance and finance

You can also seek advice from a voluntary organisation such as The Citizens Advice Bureau

Frequently they can be added to the mortgage hence the fee does not become an ‘out of pocket’ expense

All lenders will insist on buildings insurance as the very minimum

Garage contents Items taken away from the home such as pedal cycles, jewellery, mobile phones etc Mortgage Indemnity Insurance Also known as Mortgage Indemnity Guarantee

The cost can easily add over £1,000 to the total bill and is either paid up front or added to the overall loan

Why indexed linked? - As time goes by, the rebuild and repair costs of any property damage are likely to increase, thus if the sum insured does not rise in relation to these, you will end up being under insured

As a tip, note that in the UK you can only drive up to a 3 tonne vehicle before you need an HGV license

As a general guide, it is advisable to compare the APRs of different products as this will help you to determine how competitive they are

The Lender offers a discount on the Standard Variable Rate (SVR) for a specific period of time

This is called a collar

You will be kept up-to-date on the progress of your application by e-mail

Higher rate taxpayers may benefit from this option

Homeowners with older mortgages only have to wait eight weeks to get half of their interest paid, and after 16 weeks they get it all paid

It is the role of the solicitor or licensed conveyancer to note ownership of the property on the title deeds; note the lenders interest in the property; register with the Land Registry and conduct searches to identify if there may be factors which could affect the property e

Cashback The Lender, as an incentive, will offer a lump sum of cash once the mortgage has been taken out

Disadvantages: The amount of your debt does not decrease over time, unlike the repayment mortgage option

You should never assume that because a lender is prepared to agree a mortgage on the property that the purchase price is reasonable or there is nothing wrong with the property itself

Your local agent can give you a good idea here

This information is likely to have been given to the seller and will form part of there judgement of your offer

Try not to widen your search in too much

There are a number of limitations to the standard types of mortgages available if your income is erratic, for example if you are self employed or perhaps working on short term contracts

Check this out with your solicitor or lender

Your solicitor should be able to advise you on the current search time