ENQUIRYFORM
ENQUIRY
FORM
Whatever your circumstances we can help...
First time buyer?
Moving home?
Looking to remortgage?
History of adverse credit?
Self employed?
No deposit?
Commercial finance?
* We do not charge in most cases.
About us
Being a property developer I am always requiring commercial finance. I have used AGA mortgages on several occasions and have only nice things to say about them.
“We were referred to them as we required completion for a new build property within 30 days. They were able to prioritise our case and we received a written offer within 10 days of our application. We would recommend them to anyone!”
“We had a really stressful time buying our dream house and the only thing that went smoothly was arranging and getting our mortgage.”
“Buying my first house was a bit daunting but AGA were there every step of the way. They explained all the different types of mortgages to me and helped me choose the right one.They were excellent and even dealt with my solicitor for me so I didn't have to worry so much. I would recommend AGA to anyone as they are friendly, reliable and professional. I'll be giving them a call when my 2 year deal ends.
“I have already forwarded your details to two people with a high recommendation that they contact you.”
Jane Fage, London
Lisa Morris, Hertfordshire
Edward Druce, Bedfordshire
Nicola Rickard, Hertfordshire
Svetlana Scheck, London
AGA Mortgages is a trading name of Alexander Groom Associates. Alexander Groom Associates is an appointed representative of Mortgage Intelligence which is authorised and regulated by the Financial Services Authority.
Mortgage Intelligence Limited heads a network of more than 8,000 members, who between them have arranged more than £6 billion of mortgages in the last twelve months. Founded in 1996, Mortgage Intelligence is backed by European Financial Solutions who are a subsidiary of the JZ International Ltd, the European affiliate of The Jordan Group, based in New York with $6billion funds under management. Driven by our commitment to provide premium broker services and support, Mortgage Intelligence is firmly established as one of UK’s leading intermediary networks.
Based in Hertfordshire, we can offer face-to-face contact to clients in the local region or a telephone and internet based service to clients further a field. We have 12 years of experience within financial services and specialise in mortgages and mortgage related insurance, with no investment element. The combination of qualifications and years of practical experience has enabled us to develop a service that makes the complicated simple and exceeds clients’ expectations.
Products and Services
AGA Mortgages offer a wide range of products and services to help when buying and selling property. We are totally independent, so offer impartial advice.
MortgagesFirst Time BuyersRe-MortgageSelf-CertificationBuy-to-LetAdverse CreditEquity ReleaseCommercialRight-to-BuyDebt ConsolidationBridging FinanceSecured LoansOverseas Mortgage
Mortgages
InsuranceBuildings and ContentsLife AssuranceCritical IllnessIncome ProtectionMortgage Payment Protection (MPPI)Click here for more information >>
Insurance
Click here for more information >>
Home Information PacksAlso known as H.I.P.s please click here for details >>
Home Information Packs
Also known as H.I.P.s
please click here for details >>
WillsAGA Mortgages can introduce you to a company dedicated to will writing and inheritance tax planning. Their comprehensive range of estate planning services are suited to any size estate, from a simple single will with a small estate to multi-million pound estates and clients with business assets which need to be dealt with in the most tax efficient way possible.Click here for more >>
Wills
AGA Mortgages can introduce you to a company dedicated to will writing and inheritance tax planning. Their comprehensive range of estate planning services are suited to any size estate, from a simple single will with a small estate to multi-million pound estates and clients with business assets which need to be dealt with in the most tax efficient way possible.
Click here for more >>
Solicitor RecommendationAGA Mortgages deal with several reputable solicitors and can recommend one depending on your needs. For more information contact us >>
Solicitor Recommendation
AGA Mortgages deal with several reputable solicitors and can recommend one depending on your needs.
For more information contact us >>
FAQs
Still unsure?
Then please contact our mortgage adviser, Alex Groom on:
Here at AGA Mortgages, there are several questions that prospective clients typically ask us. We have highlighted some of these below which you might find useful…
01279 721706 / 07796 271 801
or email us for expert,
impartial advice
MortgagesIn a nutshell a mortgage is a type of loan used to buy a property. This loan is usually taken out with a lender, such as a bank or building society.
In a nutshell a mortgage is a type of loan used to buy a property. This loan is usually taken out with a lender, such as a bank or building society.
How do I go about buying my first property?
Some lenders offer very good deals for first time buyers and a minimum deposit of 10% is required. It is also worth remembering the additional costs, on top of your deposit and mortgage that you will be expected to pay.For example, you will have to pay stamp duty, which is 1% of the purchase price for properties between £175,000 and £250,000, then 3% up to £500,000 and 4% over that amount. For a property below £175,000, there is no stamp duty to pay.You will have to pay for the survey and the valuation on the property, plus solicitor’s fees. You may also have to pay an arrangement fee for the mortgage and a Higher Lending Charge - which is insurance for the lender for you defaulting on your payments when your property is worth less than the loan.
Some lenders offer very good deals for first time buyers and a minimum deposit of 10% is required. It is also worth remembering the additional costs, on top of your deposit and mortgage that you will be expected to pay.
For example, you will have to pay stamp duty, which is 1% of the purchase price for properties between £175,000 and £250,000, then 3% up to £500,000 and 4% over that amount. For a property below £175,000, there is no stamp duty to pay.You will have to pay for the survey and the valuation on the property, plus solicitor’s fees. You may also have to pay an arrangement fee for the mortgage and a Higher Lending Charge - which is insurance for the lender for you defaulting on your payments when your property is worth less than the loan.
Buying your first property and choosing the right mortgage can be rather daunting, so do contact us and we can advise you on the mortgage options available to you. In the meantime, we hope you find the following information useful.The amount of mortgage you can get depends on your income. As a rough guide the usual multiples are 3.25 times the gross salary of single borrowers. A couple can get 3.25 times the first income plus one times the second income. However, you could get 2.5 times the combined income of both of you. These multiples do vary from lender to lender so it is worth talking to us to find out what is available.Once you add to this the amount that you can afford to pay as a deposit, you have the amount you can pay for your first property.
Buying your first property and choosing the right mortgage can be rather daunting, so do contact us and we can advise you on the mortgage options available to you. In the meantime, we hope you find the following information useful.
The amount of mortgage you can get depends on your income. As a rough guide the usual multiples are 3.25 times the gross salary of single borrowers. A couple can get 3.25 times the first income plus one times the second income. However, you could get 2.5 times the combined income of both of you. These multiples do vary from lender to lender so it is worth talking to us to find out what is available.
Once you add to this the amount that you can afford to pay as a deposit, you have the amount you can pay for your first property.
How much can I borrow?
How much you can borrow will depend on your income and whether or not you have any other financial commitments, i.e., loans, credit cards, maintenance payments. It will also depend on how much deposit you have to put down as an initial down-payment on your property. For further information please contact us, we guarantee a response within 24hrs.
How much will my monthly repayments be?
Such as:Valuation fee, which will be paid to an approved surveyor who has carried out an independent assessment of the value of the property you intend to buyArrangement fee, this is charged by your lender, ie bank or building society, when arranging the mortgageSolicitor’s fees for carrying out the conveyancing work on your propertyLife Assurance and Buildings & Contents Insurance
Such as:
Your mortgage payments will depend on the following factors:
The actual amount of the mortgageThe interest rate applicable to the mortgageThe term of the mortgage (years over which the mortgage will be repaid)Whether the mortgage is a repayment or interest only mortgageA Key Facts Illustration detailing what your monthly payments would be, can be provided once we have discussed your case.It is also worth bearing in mind that there will be additional costs involved that you will need to factor in when budgeting for your mortgage.
A Key Facts Illustration detailing what your monthly payments would be, can be provided once we have discussed your case.
It is also worth bearing in mind that there will be additional costs involved that you will need to factor in when budgeting for your mortgage.
Mortgage products & how they work
There are broadly four types of mortgage products available:
Fixed: This is a mortgage rate where the interest rate is agreed at the start of the mortgage and will not change during the term of the fixed rate. So you know exactly how much your monthly payments will be each month during the fixed rate period.Discounted: A discounted rate mortgage offers you reduced repayments for a given term. This interest rate is discounted from the published bank standard variable rate, or 100% standard variable rate if applicable, for an agreed period from the start of the mortgage. What this means for you the borrower is that you are guaranteed to pay a set amount below the standard variable rate for the period of the discount. The standard rate can go up and down, but the discount amount remains fixed during the agreed period.
Fixed: This is a mortgage rate where the interest rate is agreed at the start of the mortgage and will not change during the term of the fixed rate. So you know exactly how much your monthly payments will be each month during the fixed rate period.
Discounted: A discounted rate mortgage offers you reduced repayments for a given term. This interest rate is discounted from the published bank standard variable rate, or 100% standard variable rate if applicable, for an agreed period from the start of the mortgage. What this means for you the borrower is that you are guaranteed to pay a set amount below the standard variable rate for the period of the discount. The standard rate can go up and down, but the discount amount remains fixed during the agreed period.
Tracker: This is a variable rate mortgage where the interest rate is linked directly to the Bank of England Base Rate. Therefore when the Base Rate changes, the rate on your tracker mortgage changes by the same amount. For example, if the Base Rate increases by 0.25% then your mortgage payments will increase by the same amount.
Capped: This is a type of loan where a maximum rate of interest is set at the start of the mortgage term. During the capped rate period the interest rate can fall below the capped rate but will never rise above it. What this means for you the borrower is that you know how high the mortgage payments could rise but are guaranteed the rate will not go any higher, therefore making home loan budgeting easier.
What is a mortgage in principle?
What is a mortgage
in principle?
This is a conditional offer made by a mortgage lender that - provided the information you give them is correct - they will "in principle" give you the loan you have discussed with them. A lender would need to carry out a credit score in order to obtain this.It's very useful to have one before you even start looking for a house to give you the edge over any competition. Having one means you should be able get the actual mortgage quicker when the race to buy your chosen home begins. Once we have found a suitable lender and product for you we can arrange for a mortgage in principle if you wish.
This is a conditional offer made by a mortgage lender that - provided the information you give them is correct - they will "in principle" give you the loan you have discussed with them. A lender would need to carry out a credit score in order to obtain this.
It's very useful to have one before you even start looking for a house to give you the edge over any competition. Having one means you should be able get the actual mortgage quicker when the race to buy your chosen home begins. Once we have found a suitable lender and product for you we can arrange for a mortgage in principle if you wish.
How long does it take to get a mortgage?
The time scales can vary considerably when applying for a mortgage and are dependent upon many factors, such as whether you are purchasing a new property or remortgaging.If you are remortgaging this can take around a month but this does depend on how quickly your solicitor acts, which can delay the process. We do however have an exclusive rapid remortgage service which could speed things up considerably for you, so do give us a call to find out more.
The time scales can vary considerably when applying for a mortgage and are dependent upon many factors, such as whether you are purchasing a new property or remortgaging.
If you are remortgaging this can take around a month but this does depend on how quickly your solicitor acts, which can delay the process. We do however have an exclusive rapid remortgage service which could speed things up considerably for you, so do give us a call to find out more.
What documents do I need?
Typically lenders will require your latest bank statement, last 3 wage slips or 3 years accounts if self employed. They will also require proof of identity and current address. Other documentation may be required although this varies amongst lenders.
What if I can't prove my income?
If you are having trouble finding a mortgage because you’re self-employed or have an irregular income, then a self certification mortgage may be the mortgage option for you. But how do you know if you qualify for this type of mortgage?A self cert mortgage, as its name implies, allows you the borrower to certify your own earnings without having to supply proof of income documentation, such as pay slips or fully audited accounts. Self cert mortgages are ideally suited to those who are self-employed, or employed but have an irregular income, due for example to bonuses and commission. They are also ideal for those who have several jobs, are seasonal wage earners or those who regularly undertake contract work.The overall cost for comparison is 7.9% APR.
If you are having trouble finding a mortgage because you’re self-employed or have an irregular income, then a self certification mortgage may be the mortgage option for you. But how do you know if you qualify for this type of mortgage?
A self cert mortgage, as its name implies, allows you the borrower to certify your own earnings without having to supply proof of income documentation, such as pay slips or fully audited accounts. Self cert mortgages are ideally suited to those who are self-employed, or employed but have an irregular income, due for example to bonuses and commission. They are also ideal for those who have several jobs, are seasonal wage earners or those who regularly undertake contract work.
The overall cost for comparison is 7.9% APR.
Why is it important to get impartial advice?
It is important to get impartial advice so that you are given the option of being able to consider the whole mortgage market place and all the mortgage options available to you.As we are not tied to any bank or building society and give totally impartial advice, we can work with you to get the right mortgage to suit your unique personal circumstances. It’s worth bearing in mind that if you approach a lender direct they are only going to give you advice on their particular products.
It is important to get impartial advice so that you are given the option of being able to consider the whole mortgage market place and all the mortgage options available to you.
As we are not tied to any bank or building society and give totally impartial advice, we can work with you to get the right mortgage to suit your unique personal circumstances. It’s worth bearing in mind that if you approach a lender direct they are only going to give you advice on their particular products.
Jargon Buster - Glossary of Terms
Jargon Buster Glossary of Terms
Jargon Buster
Glossary of Terms
A
Annual Percentage Rate (APR)A way of comparing the rates charged by different mortgage lenders. A percentage figure is calculated by using a standard formula that takes into account interest rates and associated costs over the term of the mortgage. Although mortgage lenders are legally obliged to quote the APR in any mortgage schedules they provide, its usefulness is questionable as more sophisticated repayment methods are introduced by lenders, and as mortgage borrowers become accustomed to remortgaging every few years.
Annual Percentage Rate (APR)
A way of comparing the rates charged by different mortgage lenders. A percentage figure is calculated by using a standard formula that takes into account interest rates and associated costs over the term of the mortgage. Although mortgage lenders are legally obliged to quote the APR in any mortgage schedules they provide, its usefulness is questionable as more sophisticated repayment methods are introduced by lenders, and as mortgage borrowers become accustomed to remortgaging every few years.
B
Base RateThe Bank of England Base Rate, set by its Monetary Policy Committee every month, determines lending rates in the UK. Directly or indirectly, all mortgage rates are linked to the present or past Base Rate.
Base Rate
The Bank of England Base Rate, set by its Monetary Policy Committee every month, determines lending rates in the UK. Directly or indirectly, all mortgage rates are linked to the present or past Base Rate.
Buildings & Contents InsuranceBuildings insurance is a pre-requisite to getting a mortgage. It is advisable to also have your contents insured in the event of any damage. By taking out a Buildings & Contents insurance policy you are protecting yourself should anything happen, for instance, fire, flooding, etc. more >>
Buildings & Contents Insurance
Buildings insurance is a pre-requisite to getting a mortgage. It is advisable to also have your contents insured in the event of any damage. By taking out a Buildings & Contents insurance policy you are protecting yourself should anything happen, for instance, fire, flooding, etc. more >>
Buy-to-Let MortgageA mortgage for a property that is, or will be, let to tenants. This is semi-commercial lending, reflected in the higher set-up costs and marginally less attractive rates available. Income multiples are of secondary importance with this type of lending; mortgage lenders are more concerned with the relationship between rental income and mortgage payments.
Buy-to-Let Mortgage
A mortgage for a property that is, or will be, let to tenants. This is semi-commercial lending, reflected in the higher set-up costs and marginally less attractive rates available. Income multiples are of secondary importance with this type of lending; mortgage lenders are more concerned with the relationship between rental income and mortgage payments.
C
Capital and Interest MortgageAnother term for a repayment mortgage.
Capital and Interest Mortgage
Another term for a repayment mortgage.
Capped Rate MortgageA mortgage that provides protection against rising rates by setting a maximum payable rate (the cap) for a set period. You won’t pay more than the capped rate but if rates fall and your mortgage lender’s standard variable rate drops below the cap, you will pay less. Unless your cap is combined with a discount, a substantial fall in rates is required before your payable rate is reduced. There are usually early repayment charges during the capped rate period.
Capped Rate Mortgage
A mortgage that provides protection against rising rates by setting a maximum payable rate (the cap) for a set period. You won’t pay more than the capped rate but if rates fall and your mortgage lender’s standard variable rate drops below the cap, you will pay less. Unless your cap is combined with a discount, a substantial fall in rates is required before your payable rate is reduced. There are usually early repayment charges during the capped rate period.
Cashback MortgageWith this type of mortgage, the lender refunds a percentage of the advance – the cashback and you are then usually tied by way of an early repayment charge to the standard variable rate for a set number of years. Early repayment charges are likely to apply during the time you are obligated to pay the standard variable rate.
Cashback Mortgage
With this type of mortgage, the lender refunds a percentage of the advance – the cashback and you are then usually tied by way of an early repayment charge to the standard variable rate for a set number of years. Early repayment charges are likely to apply during the time you are obligated to pay the standard variable rate.
Critical Illness InsuranceThis type of policy pays out a lump sum if you were to be diagnosed with a critical illness
Critical Illness Insurance
This type of policy pays out a lump sum if you were to be diagnosed with a critical illness
Current Account Mortgage (CAM)Essentially, a flexible mortgage with daily interest calculation that has a bank account attached to the mortgage account. This can be a tax-efficient option for some borrowers. Money in the bank account is offset against the outstanding balance of the mortgage on a daily basis, so in effect is earning a net rate of interest equivalent to the payable rate on the mortgage.
Current Account Mortgage (CAM)
Essentially, a flexible mortgage with daily interest calculation that has a bank account attached to the mortgage account. This can be a tax-efficient option for some borrowers. Money in the bank account is offset against the outstanding balance of the mortgage on a daily basis, so in effect is earning a net rate of interest equivalent to the payable rate on the mortgage.
D
Disabled Discretionary Trusts/Long Term Care ManagerWe do not plan to be the victims of an accident or a serious illness, or be born with one. Neither do we think about our day-to-day needs should any of these issues arise, but any of these cases can result in us requiring long term care, depending on the severity and if there are family members who can act as carers. Family members may be able to care for us short term but what happens when they can't?
Disabled Discretionary Trusts/Long Term Care Manager
We do not plan to be the victims of an accident or a serious illness, or be born with one. Neither do we think about our day-to-day needs should any of these issues arise, but any of these cases can result in us requiring long term care, depending on the severity and if there are family members who can act as carers. Family members may be able to care for us short term but what happens when they can't?
Many parents with disabled children for example may wish to make provision for continuation of care by leaving a legacy to the disabled person to pay for the long term care which is needed after they have died.In many cases the state or local authority will only pay for a certain level of care if a disabled person as substantial assets of their own, and if they have they will be expected to contribute or even pay all the care costs themselves.We offer planning solutions that protect your estate so that it is not swallowed up paying for long term care costs for yourself or loved ones.
Many parents with disabled children for example may wish to make provision for continuation of care by leaving a legacy to the disabled person to pay for the long term care which is needed after they have died.
In many cases the state or local authority will only pay for a certain level of care if a disabled person as substantial assets of their own, and if they have they will be expected to contribute or even pay all the care costs themselves.
We offer planning solutions that protect your estate so that it is not swallowed up paying for long term care costs for yourself or loved ones.
Discounted Rate MortgageThis gives a discount off a mortgage lender’s standard variable rate for a particular length of time. The advantage of having a discount is that your payable rate will fall if rates generally fall. The disadvantage, however, is that if rates generally rise then your payable rate will rise too – without a ceiling. There are often early repayment charges during the discounted period.
Discounted Rate Mortgage
This gives a discount off a mortgage lender’s standard variable rate for a particular length of time. The advantage of having a discount is that your payable rate will fall if rates generally fall. The disadvantage, however, is that if rates generally rise then your payable rate will rise too – without a ceiling. There are often early repayment charges during the discounted period.
Discretionary TrustsA Discretionary Trust enables part of an estate, principally property or investments, to be put into trust on behalf of the beneficiaries.
Discretionary Trusts
A Discretionary Trust enables part of an estate, principally property or investments, to be put into trust on behalf of the beneficiaries.
The trust acts as though the assets were owned by the trustees who can pay out income or capital to classes of beneficiaries at their discretion, although beneficiaries can be nominated by the settlor (the person/s arranging the trust)
Buildings & Contents InsuranceBuildings insurance is a pre-requisite to getting a mortgage. It is advisable to also have your contents
Buildings insurance is a pre-requisite to getting a mortgage. It is advisable to also have your contents
Documents Safe CustodySurprisingly as it may seem, a high proportion of people still keep vital documents at their home.It is understandable that we like to keep documentation such as deeds to our house, wills or insurance policy details close at hand.But are they truly safe in the unfortunate event of a fire or flood sweeping through your home or an intruder braking in and rifling through your possessions, taking documents because they are 'just there' and then disposing of them as they are of no value to the intruder later.
Documents Safe Custody
Surprisingly as it may seem, a high proportion of people still keep vital documents at their home.
It is understandable that we like to keep documentation such as deeds to our house, wills or insurance policy details close at hand.
But are they truly safe in the unfortunate event of a fire or flood sweeping through your home or an intruder braking in and rifling through your possessions, taking documents because they are 'just there' and then disposing of them as they are of no value to the intruder later.
We can arrange for a secure Safe Custody service where we can safeguard any documentation in secure environment that is resistant to a number of destructive forces.We have different levels of safe custody available to suit all situations. For more information please don’t hesitate to contact us >>
We can arrange for a secure Safe Custody service where we can safeguard any documentation in secure environment that is resistant to a number of destructive forces.
We have different levels of safe custody available to suit all situations. For more information please don’t hesitate to contact us >>
E
Early Repayment ChargeThe fee you would have to pay for fully repaying your mortgage or making a lump sum reduction of the balance within a particular period. Borrowers may feel that the charges often in place with mortgages – discounts, fixed rates, capped rates etc, – are acceptable during the rate-control period, but that early repayment charges tying them in for a number of years to a lender’s standard variable rate thereafter are unfair. Flexible mortgages tend to have minimal early repayment charges.
Early Repayment Charge
The fee you would have to pay for fully repaying your mortgage or making a lump sum reduction of the balance within a particular period. Borrowers may feel that the charges often in place with mortgages – discounts, fixed rates, capped rates etc, – are acceptable during the rate-control period, but that early repayment charges tying them in for a number of years to a lender’s standard variable rate thereafter are unfair. Flexible mortgages tend to have minimal early repayment charges.
EndowmentA popular method of repaying an interest-only mortgage until its recent disfavour. An endowment policy is a form of life assurance that pays a tax-free lump sum at the end of its term or a guaranteed amount – usually the mortgage debt – in the event of the policyholder’s death. Because of changes in the economic climate since they were sold, many endowments are not now expected to reach their original targets on maturity.
Endowment
A popular method of repaying an interest-only mortgage until its recent disfavour. An endowment policy is a form of life assurance that pays a tax-free lump sum at the end of its term or a guaranteed amount – usually the mortgage debt – in the event of the policyholder’s death. Because of changes in the economic climate since they were sold, many endowments are not now expected to reach their original targets on maturity.
Energy Performance Certificate This tells you how energy efficient a home is on a scale of A-G. The most efficient homes should have the lowest fuel bills which are in band A. The certificates are commissioned by the seller from an accredited Energy Assessor. This data includes the date, construction and location of the property. And relevant fittings (e.g. heating systems, insulation, double glazing, etc).
Energy Performance Certificate
This tells you how energy efficient a home is on a scale of A-G. The most efficient homes should have the lowest fuel bills which are in band A. The certificates are commissioned by the seller from an accredited Energy Assessor. This data includes the date, construction and location of the property. And relevant fittings (e.g. heating systems, insulation, double glazing, etc).
Estate Administration and Probate ServicesWhen making a will you can choose anyone to act as an executor. The person or persons you nominate will then carry out your instructions and distribute your estate in accordance with your wishes. In most cases executors are close family members or trusted family friends.However, in certain circumstances, professional executors can be called upon and as part of our portfolio of estate planning services, we are able to offer this service.
Estate Administration and Probate Services
When making a will you can choose anyone to act as an executor. The person or persons you nominate will then carry out your instructions and distribute your estate in accordance with your wishes. In most cases executors are close family members or trusted family friends.
However, in certain circumstances, professional executors can be called upon and as part of our portfolio of estate planning services, we are able to offer this service.
EquityThe value of property in excess of charges on it. If your house is worth £150K and you have a mortgage for £90K and no other secured loans, you have £60K equity.
Equity
The value of property in excess of charges on it. If your house is worth £150K and you have a mortgage for £90K and no other secured loans, you have £60K equity.
Equity Release Your equity is the value of your home minus any outstanding mortgage on your property. Equity release is when you are able to turn some of that equity into cash to use now. These schemes are available to people over the age of 55 years.
Equity Release
Your equity is the value of your home minus any outstanding mortgage on your property. Equity release is when you are able to turn some of that equity into cash to use now. These schemes are available to people over the age of 55 years.
Evidence of TitleThese documents prove that the seller owns the property and therefore has the right to sell it. Where the property being sold is registered, certain documents that are available on request from the land registry must be included in the Pack. These provide an up-to-date official record of who owns the land, and consist of:Official copies of the individual register (made up of a property register, proprietorship register and, typically, a charges register)An official copy of the title plan
Evidence of Title
These documents prove that the seller owns the property and therefore has the right to sell it. Where the property being sold is registered, certain documents that are available on request from the land registry must be included in the Pack. These provide an up-to-date official record of who owns the land, and consist of:
F
Fixed Rate MortgageA name for mortgages offering a fixed payable rate for a set period, during which there will almost certainly be early repayment charges. This type of mortgage gives shelter from rising rates and allows for easy monthly budgeting, but if rates were to fall substantially during the period of the fix you would be left paying a relatively high rate.
Fixed Rate Mortgage
A name for mortgages offering a fixed payable rate for a set period, during which there will almost certainly be early repayment charges. This type of mortgage gives shelter from rising rates and allows for easy monthly budgeting, but if rates were to fall substantially during the period of the fix you would be left paying a relatively high rate.
Flexible Mortgage A generic name for a fairly recent arrival in the UK market. Flexible mortgages provide more options for borrowers than traditional mortgages.
Flexible Mortgage
A generic name for a fairly recent arrival in the UK market. Flexible mortgages provide more options for borrowers than traditional mortgages.
The features available vary from lender to lender. The defining characteristics of flexible mortgages are their monthly or daily interest calculation (instead of the annual interest calculation methods of traditional mortgages) plus the ability to make overpayments without an early repayment charge at any time. They tend to have a lower standard variable rate than traditional mortgages, and many allow you to underpay, defer paying by taking so called payment holidays, drawback overpayments, and to drawdown further advances at a beneficial rate. Generally, flexible mortgages are for borrowers who intend to repay their mortgage early. Current account mortgages embody a further refinement of the principle of flexibility.
H
Higher Lending ChargeA one-off premium that mortgage borrowers may be charged. It is generally payable when you want to borrow a high percentage of a property’s value – usually above 75% loan to value; but it is common practice for mortgage lenders to carry the cost of this insurance themselves between 75% and 90%. The premium pays for the lender to insure against potential losses should the house be repossessed and sold for less than the outstanding mortgage. It is important to note that the insurance protects the mortgage lender, not the borrower.
Higher Lending Charge
A one-off premium that mortgage borrowers may be charged. It is generally payable when you want to borrow a high percentage of a property’s value – usually above 75% loan to value; but it is common practice for mortgage lenders to carry the cost of this insurance themselves between 75% and 90%. The premium pays for the lender to insure against potential losses should the house be repossessed and sold for less than the outstanding mortgage. It is important to note that the insurance protects the mortgage lender, not the borrower.
Irrespective of who pays the premium (lender or borrower), the insurer providing the cover retains the right to pursue the defaulting borrower for any loss made as a result of a lender’s claim on the policy.
Home Condition Report This contains information about the physical condition of a property which sellers, buyers and lenders will be able to rely on legally as an accurate report.
Home Condition Report
This contains information about the physical condition of a property which sellers, buyers and lenders will be able to rely on legally as an accurate report.
Home Information Packs (HIPS)Home Information Packs including Energy Performance Certificates will be implemented on a phased basis from 1 August 2007. From then Packs will be required for the sale of four bedroom properties and larger, with smaller properties being phased in as soon as sufficient energy assessors are fully qualified. The packs will be compiled by the seller to give potential buyers as much information about the property as possible. more >>
Home Information Packs (HIPS)
Home Information Packs including Energy Performance Certificates will be implemented on a phased basis from 1 August 2007. From then Packs will be required for the sale of four bedroom properties and larger, with smaller properties being phased in as soon as sufficient energy assessors are fully qualified. The packs will be compiled by the seller to give potential buyers as much information about the property as possible. more >>
I
Income MultiplesThe factors by which mortgage lenders will multiply the gross annual income of applicants to determine their maximum borrowing capability. Multiples vary among lenders.
Income Multiples
The factors by which mortgage lenders will multiply the gross annual income of applicants to determine their maximum borrowing capability. Multiples vary among lenders.
Income ProtectionThis type of policy pays a monthly amount should you be unable to work, for instance, have an accident or become ill.
Income Protection
This type of policy pays a monthly amount should you be unable to work, for instance, have an accident or become ill.
Individual Savings Account (ISA)ISAs provide a way of repaying an interest-only mortgage. The government has guaranteed that they will be in place until at least 5 April 2009. The type of ISA most suitable for mortgage repayment purposes is the equity (stocks and shares) based one. As such one should remember that the future value will be dependent upon investment growth and investments can go down as well as up. ISAs enjoy significant tax breaks with no capital gains tax on growth, reduced tax on dividend income and no tax levied upon withdrawals. Whilst contributions can be amended at any time, there is an upper limit on the amount you can pay into an ISA.
Individual Savings Account (ISA)
ISAs provide a way of repaying an interest-only mortgage. The government has guaranteed that they will be in place until at least 5 April 2009. The type of ISA most suitable for mortgage repayment purposes is the equity (stocks and shares) based one. As such one should remember that the future value will be dependent upon investment growth and investments can go down as well as up. ISAs enjoy significant tax breaks with no capital gains tax on growth, reduced tax on dividend income and no tax levied upon withdrawals. Whilst contributions can be amended at any time, there is an upper limit on the amount you can pay into an ISA.
Inheritance TaxOnce your estate is worth £300,000, any amount over this will be taxed at a flat rate of 40% so the tax man gets his share ahead of your beneficiaries - and YOUR family! AGA Mortgages can help you plan to minimize your inheritance tax by the use of a will trust within your will so that your loved ones receive as much as possible and the taxman gets as little as possible.
Inheritance Tax
Once your estate is worth £300,000, any amount over this will be taxed at a flat rate of 40% so the tax man gets his share ahead of your beneficiaries - and YOUR family! AGA Mortgages can help you plan to minimize your inheritance tax by the use of a will trust within your will so that your loved ones receive as much as possible and the taxman gets as little as possible.
Interest CalculationThe frequency with which mortgage lenders calculate the outstanding balance on mortgages – annually, monthly or daily – is an important consideration if you have a repayment mortgage. The annual calculation systems of traditional mortgages mean that you are paying interest on capital repayments already made during the course of that calendar year. The daily or monthly interest calculations used with flexible mortgages enable payments (and overpayments) to have a quicker impact on the outstanding balance. Other things being equal, daily or monthly as opposed to annual calculation saves borrowers money.
Interest Calculation
The frequency with which mortgage lenders calculate the outstanding balance on mortgages – annually, monthly or daily – is an important consideration if you have a repayment mortgage. The annual calculation systems of traditional mortgages mean that you are paying interest on capital repayments already made during the course of that calendar year. The daily or monthly interest calculations used with flexible mortgages enable payments (and overpayments) to have a quicker impact on the outstanding balance. Other things being equal, daily or monthly as opposed to annual calculation saves borrowers money.
Interest-only MortgageMonthly payments consist entirely of the interest due on your mortgage, so that the balance you owe is not reduced during the term. Interest-only mortgages are usually set up in conjunction with investment vehicles such as personal pensions, ISAs or endowment policies (they are sometimes generically known as endowment mortgages) designed to repay the loan at a given date assuming specified levels of growth.
Interest-only Mortgage
Monthly payments consist entirely of the interest due on your mortgage, so that the balance you owe is not reduced during the term. Interest-only mortgages are usually set up in conjunction with investment vehicles such as personal pensions, ISAs or endowment policies (they are sometimes generically known as endowment mortgages) designed to repay the loan at a given date assuming specified levels of growth.
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Letting Your PropertyThis contains information about the physical condition of a property which sellers, buyers and lenders will be able to rely on legally as an accurate report.
Letting Your Property
Life AssuranceLife Assurance is an insurance policy which pays out a lump sum should you die prematurely. This can then be used by your partner to pay off the mortgage.Level Term: This is a policy which pays out a fixed amount of money in the event of your death. The term is usually set to match the term of your mortgage.Decreasing Term: This is a policy which reduces in value in line with your mortgage.
Life Assurance
Life Assurance is an insurance policy which pays out a lump sum should you die prematurely. This can then be used by your partner to pay off the mortgage.
Living WillsA living will, also known as an Advanced Directive, this is a document which states what kind of care you would like to receive if you become incapable of making such decisions for yourself. It is a document that can only be prepared and signed whilst you have full mental capacity and outlines the circumstances under which you would like, and would not like, to receive life-prolonging medical treatment.
Living Wills
A living will, also known as an Advanced Directive, this is a document which states what kind of care you would like to receive if you become incapable of making such decisions for yourself. It is a document that can only be prepared and signed whilst you have full mental capacity and outlines the circumstances under which you would like, and would not like, to receive life-prolonging medical treatment.
Loan To Value (LTV)A percentage figure indicating the size of the mortgage on a property in relation to its value. Thus, a house worth £120K with a mortgage of £60K would have a loan to value of 50%. Better mortgage deals are available for lower loan to values – 75% and below. At higher loan to values – usually from 90% to 95% (or some lenders will go to 100%) – you are likely to find yourself paying a higher lending charge.
Loan To Value (LTV)
A percentage figure indicating the size of the mortgage on a property in relation to its value. Thus, a house worth £120K with a mortgage of £60K would have a loan to value of 50%. Better mortgage deals are available for lower loan to values – 75% and below. At higher loan to values – usually from 90% to 95% (or some lenders will go to 100%) – you are likely to find yourself paying a higher lending charge.
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Mortgage Payment Protection (MPPI) This type of policy pays out a monthly amount for typically a 12 month period if, for instance, you have an accident, become ill, become unemployed or are made redundant.
Mortgage Payment Protection (MPPI)
This type of policy pays out a monthly amount for typically a 12 month period if, for instance, you have an accident, become ill, become unemployed or are made redundant.
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Other Charges Notwithstanding any charges notified with your recommendation or covered elsewhere in this brochure, you should be aware that you may be liable for certain other standard charges. Namely:
Other Charges
Notwithstanding any charges notified with your recommendation or covered elsewhere in this brochure, you should be aware that you may be liable for certain other standard charges. Namely:
1. Buildings and Contents InsuranceInsuring your home is essential. All mortgage lenders insist you have adequate buildings insurance, in order to safeguard the money they are lending. Most lenders now do not insist on your taking their own block insurance. They do, however, reserve the right to charge an administration fee (typically £25) for checking that your policy is adequate if you elect to arrange insurance elsewhere.
1. Buildings and Contents Insurance
Insuring your home is essential. All mortgage lenders insist you have adequate buildings insurance, in order to safeguard the money they are lending. Most lenders now do not insist on your taking their own block insurance. They do, however, reserve the right to charge an administration fee (typically £25) for checking that your policy is adequate if you elect to arrange insurance elsewhere.
Other Charges (cont.)2. Legal feesUnless the scheme recommended specifically states that the product carries free basic legal work, you will be liable to pay any such costs in relation to your mortgage application. The solicitors acting would normally be working on both your and the mortgage lender's behalf and you would ordinarily be responsible for all costs. If the recommendation carries free basic legal work, please note that this covers only the very basic work. The cost of additional work carried out on your instruction or incurred as a result of unusual circumstances will be your responsibility. If you have any doubts as to the implications of this, please call us on 01279 721706.
Other Charges (cont.)
2. Legal fees
Unless the scheme recommended specifically states that the product carries free basic legal work, you will be liable to pay any such costs in relation to your mortgage application. The solicitors acting would normally be working on both your and the mortgage lender's behalf and you would ordinarily be responsible for all costs. If the recommendation carries free basic legal work, please note that this covers only the very basic work. The cost of additional work carried out on your instruction or incurred as a result of unusual circumstances will be your responsibility. If you have any doubts as to the implications of this, please call us on 01279 721706.
3. Release fee (sealing fee)An administrative charge imposed by mortgage lenders for releasing the title deeds of your property when you redeem your mortgage (repay in full). This fee is payable because remortgages involve redeeming the mortgage with one lender and transferring it to another. It varies considerably from lender to lender: it can be up to £300 - and although it is not strictly speaking an early repayment charge, borrowers may well feel penalised by fees at the higher end of the scale.
3. Release fee (sealing fee)
An administrative charge imposed by mortgage lenders for releasing the title deeds of your property when you redeem your mortgage (repay in full). This fee is payable because remortgages involve redeeming the mortgage with one lender and transferring it to another. It varies considerably from lender to lender: it can be up to £300 - and although it is not strictly speaking an early repayment charge, borrowers may well feel penalised by fees at the higher end of the scale.
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Payment Protection InsurancePolicies that ensure mortgage payments are met for a given period (usually 12 months) if you are unable to work because you become sick, have an accident or are made redundant. Income Support for Mortgage Interest (ISMI) is no longer payable for the first 9 months that you are unable to work, and the government has urged homeowners to protect their homes with this type of cover. Mortgage payment protection insurance is also known as accident, sickness and unemployment (ASU) cover. (Confusingly, some types of life assurance taken in conjunction with a mortgage may be called mortgage protection policies.)
Payment Protection Insurance
Policies that ensure mortgage payments are met for a given period (usually 12 months) if you are unable to work because you become sick, have an accident or are made redundant. Income Support for Mortgage Interest (ISMI) is no longer payable for the first 9 months that you are unable to work, and the government has urged homeowners to protect their homes with this type of cover. Mortgage payment protection insurance is also known as accident, sickness and unemployment (ASU) cover. (Confusingly, some types of life assurance taken in conjunction with a mortgage may be called mortgage protection policies.)
Permanent Health Insurance (PMI)A form of cover that pays the policyholder an income for a specified time (usually after a preliminary deferment period) in the event of prolonged illness resulting in loss of earnings.
Permanent Health Insurance (PMI)
A form of cover that pays the policyholder an income for a specified time (usually after a preliminary deferment period) in the event of prolonged illness resulting in loss of earnings.
PortabilityA portable mortgage is one that can be transferred without penalty if you move house during a rate-control period. If you increase your mortgage the rate available for additional borrowing depends on what schemes the lender is prepared to offer you. If you reduce your mortgage, a pro-rata early repayment charge may apply. Most mortgages nowadays are portable.
Portability
A portable mortgage is one that can be transferred without penalty if you move house during a rate-control period. If you increase your mortgage the rate available for additional borrowing depends on what schemes the lender is prepared to offer you. If you reduce your mortgage, a pro-rata early repayment charge may apply. Most mortgages nowadays are portable.
Property Protective TrustThe majority of couples own their homes as "Joint Tenants in Common" or jointly, this is a good idea when things are going right but not always a good idea when things go wrong, for instance, having to go into residential care due to an accident/illness or old age. If you own more than £21,000 in assets you will have to pay for all your care fees. Therefore, if you own your own property this will be taken into consideration when the local authorities are assessing your total assets.By making your will, it will provide you with the opportunity to see if this type of trust will in fact help preserve your assets and reduce the overall cost of any care fees, thus ensuring part of your estate can pass to your beneficiaries as you had intended.
Property Protective Trust
The majority of couples own their homes as "Joint Tenants in Common" or jointly, this is a good idea when things are going right but not always a good idea when things go wrong, for instance, having to go into residential care due to an accident/illness or old age. If you own more than £21,000 in assets you will have to pay for all your care fees. Therefore, if you own your own property this will be taken into consideration when the local authorities are assessing your total assets.
By making your will, it will provide you with the opportunity to see if this type of trust will in fact help preserve your assets and reduce the overall cost of any care fees, thus ensuring part of your estate can pass to your beneficiaries as you had intended.
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RedundancyThe DSS gives no assistance to borrowers for nine months following redundancy, and qualification for help with paying mortgage interest thereafter is means-tested and restricted to interest on the first £100,000 of the loan. If you are anxious about being able to maintain payments in the event of redundancy or long-term illness, you should consider taking out mortgage payment protection insurance.
Redundancy
The DSS gives no assistance to borrowers for nine months following redundancy, and qualification for help with paying mortgage interest thereafter is means-tested and restricted to interest on the first £100,000 of the loan. If you are anxious about being able to maintain payments in the event of redundancy or long-term illness, you should consider taking out mortgage payment protection insurance.
Repayment MortgageAlso referred to as a capital-and-interest mortgage. Part of each monthly payment you make goes towards repaying the capital amount you owe and part goes towards paying interest charged on the loan. At the end of the term (typically 25 years) the entire debt will be repaid. In the early years payments consist largely of interest; as time goes on the capital-repayment proportion increases.
Repayment Mortgage
Also referred to as a capital-and-interest mortgage. Part of each monthly payment you make goes towards repaying the capital amount you owe and part goes towards paying interest charged on the loan. At the end of the term (typically 25 years) the entire debt will be repaid. In the early years payments consist largely of interest; as time goes on the capital-repayment proportion increases.
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Sale Statement This should provide some basic information about the site, for example:The name of the seller and the address of the property being soldWhether the property is freehold, leasehold or commonholdWhether the property is registered or unregisteredWhether or not the property is being sold with vacant possession
Sale Statement
This should provide some basic information about the site, for example:
Split Loan A mortgage that has some of the loan set up on an interest-only basis and some on a repayment basis.
Split Loan
A mortgage that has some of the loan set up on an interest-only basis and some on a repayment basis.
Standard SearchesThe Home Information Pack must include:The local land charges register relating to the property being sold. If the search is carried out by the local authority, an official search certificate will be provided. Alternatively a personal search company can be used.Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the Home Information Pack regulations. A local authority or a personal search company can be used.
Standard Searches
The Home Information Pack must include:
Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the Home Information Pack regulations. A local authority or a personal search company can be used.The provision of drainage and water services to the property. The local water company or a personal search company can be used (however, the search must comply with the HIP Regulations).Whether or not the property is being sold with vacant possession
Standard Variable Rate (SVR)Mortgage lenders’ SVRs fluctuate at their discretion as economic conditions change. When the initial rate-control period on a mortgage finishes the SVR will be the payable rate. (Some flexible mortgages nowadays have special lower SVRs linked directly to the Bank of England Base Rate.)
Standard Variable Rate (SVR)
Mortgage lenders’ SVRs fluctuate at their discretion as economic conditions change. When the initial rate-control period on a mortgage finishes the SVR will be the payable rate. (Some flexible mortgages nowadays have special lower SVRs linked directly to the Bank of England Base Rate.)
Stamp Duty This is a land tax payable when purchasing a property or land in the UK. The amount payable depends upon the purchase price. If you are paying £125,000 or less, then you are exempt from paying stamp duty. If you are paying more than £125,000, then you pay stamp duty of between 1 to 4 % of the purchase price - on a sliding scale. Some underprivileged areas in the UK are exempt from stamp duty if the purchase price is £150,000 or less.
Stamp Duty
This is a land tax payable when purchasing a property or land in the UK. The amount payable depends upon the purchase price. If you are paying £125,000 or less, then you are exempt from paying stamp duty. If you are paying more than £125,000, then you pay stamp duty of between 1 to 4 % of the purchase price - on a sliding scale. Some underprivileged areas in the UK are exempt from stamp duty if the purchase price is £150,000 or less.
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Tracker MortgageThese are mortgages with a variable rate set above or below the Bank of England Base Rate. Tracker mortgages are similar to discount mortgages, in that they fluctuate in accordance with prevailing economic conditions without an upper limit on their payable rate; but they have the advantage of being linked to a rate set by an independent party – the Bank of England – rather than the mortgage lender.
Tracker Mortgage
These are mortgages with a variable rate set above or below the Bank of England Base Rate. Tracker mortgages are similar to discount mortgages, in that they fluctuate in accordance with prevailing economic conditions without an upper limit on their payable rate; but they have the advantage of being linked to a rate set by an independent party – the Bank of England – rather than the mortgage lender.
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