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Mortgage Q&A

If you currently have a fixed-rate or Tracker mortgage (not all), then Early Repayment (Redemption) Charges may be payable for paying off this mortgage early. This usually ranges between 1-5% of the total loan amount and will depend on the length of the fixed period, i.e. the longer the fixed period remaining, the higher the early repayment charges payable. Exact details of this can be found on your mortgage offer and/or annual mortgage statement.

When the fixed period ends, there are usually no Early Redemption Charges payable. A Mortgage Exit Fee (or Redemption Fee) may be payable to close the mortgage account. Your lender may also charge a nominal fee to cover the administration costs associated with closing the mortgage account down.

If you are on the lender's standard variable rate mortgage, then no Early Repayment Charges are payable.

Yes- dependent on your individual circumstances and terms of your new contract, we have lenders that will consider a mortgage application for those who have started a new job.

If you are within your fixed rate period, then you will not see an increase in your mortgage payments. If, however you have a tracker mortgage or are on the lender’s standard variable rate then you should expect to see an increase in your monthly repayments.  Equally, if the Base Rate decreases, then you would expect a reduction in your monthly mortgage payment.

Yes you can get a buy to let mortgage on a multi-unit property, however not all lenders will consider lending on this type of security as it is not a property type that can be easily sold to a single family. An example of a multi-unit property could be a single house which has been converted or split into two of more units, but the overall property is on a single title.

The lenders that usually accept this property type, will require for the individual units to be self-contained with separate access, own utilities, and they must not have individual leases on the units, if you are looking to lending against the whole building.

Some lenders will also require a minimum amount of landlord experience, before they will consider lending on this property type.

Most buy to let lenders will have separate HMO mortgage products. Hence if a property is a HMO, then you have to apply for a HMO mortgage on a HMO product.

Traditionally, these products tend to be more expensive than Standard Buy to Let properties and tend to be limited predominantly to specialist Buy to Let Lenders rather than the traditional high street banks.

We work with a large number of lenders that offer mortgages where there have been issues with credit in the past.

The rules around Buy to Let mortgages were changed in 2017 by the Prudential Regulation Authority (PRA). They defined a portfolio landlord as an individual who has more than four mortgaged properties.

Whether you own investment properties, solely, jointly or in a Limited Company, the team at Key Life Financial Services are well versed and experienced in this area and, can provide you bespoke and specialist advice tailored to your circumstances.

There are three repayment methods available:

Capital & Interest – Your monthly payments will include repayment of the capital (loan amount borrowed) and interest. Your mortgage will reduce over time and will be repaid in full at the end of the term.

Interest Only – Your monthly payments will only pay the interest charges on your loan, and not any of the capital borrowed. Your outstanding mortgage balance will not reduce over the mortgage term and will still need to be repaid off in full at the end of your mortgage term.

Part Interest Only/ Part Repayment – This is a combination of capital repayment and interest only. The capital repayment element will be paid off by the end of the term. However, the interest-only element will still need to be repaid off in full at the end of the mortgage term.

 

The ability to make overpayments depends on the lender and type of product you have.

Typically, if you have a fixed rate product, the lender will have a restriction of overpaying a maximum 10% of the balance annually. If you have a Standard Variable Rate product, then there are usually no restrictions to the amount you can repay at any time.

We have access to special products giving your flexibility to make payments which exceed your 10% allowance without a penalty, as well as allowing you to clear the whole mortgage without incurring an early repayment charge. However, the lender may charge a small exit fee which is typically a few hundred pounds.

A handful of lenders have recently started offering loans at 80%. However, the majority of Buy to Let lenders will cap the LTV to 75%. The LTV will depend on the monthly Rental, tenancy type, personal income, experience, credit rating and property type, to name a few.

Based on your individual circumstances and requirements, we can obtain the best rate and mortgage product for you.