Property Mortgages Guide
If you’re tempted by property for sale in the UK, find out our guide to UK property mortgages.
Before even beginning to look at properties for sale in UK, first check out our guide to UK property mortgages to make a calculation of how much you can realistically borrow from the bank and what property prices you can afford. There are no restrictions on foreigners applying for a UK mortgage, but UK mortgage conditions can change depending on whether you are a resident or non-resident in the UK.
Here are some things to keep in mind when it comes to getting a mortgage:
- Expect the interest rate to be around 2-4%. This rate will vary case-by-case based on the lender criteria, your needs and circumstance.
- The loan-to-value (LTV) ratio can vary between 65-75 %.
- When it comes to the payment method you can choose between Interest Only or Interest and Capital. The term for an Interest Only mortgage is from 5 to 15 years the term for Interest and Capital is approximately 25 years. Both are dependent on the age of the borrower.
- The interest rate can be booked for a fixed-term from 2 to 5 years, this will give a piece of mind that you don’t need to remortgage for 5 years and you will know how much you pay each month. The variable interest rate depends on the client and their needs is less than the fixed rate.
- Lending age depends on the bank, with some who lend up to age 80.
- A guarantor can be used to increase the borrowing, and to avoid hefty stamp duty.
- Most of the lenders will look to the rental income for investment, if this is not enough, they will check the client’s income for top-slicing.
- For a live-in property they will look to your income.
Our mortgage partners include:
Hayat Private Finance – UK Mortgage Lending
Visit their website www.hayatprivatefinance.co.uk for further information on the services they provide.