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Things to consider when buying a house with a friend


House prices are extreme considering an average person’s income in the United Kingdom. Moreover, most people resort to getting a huge mortgage to pay for their new home. Although this the norm, considering a joint investment with a friend to buy a home can be an alternative to being chased by mortgage arrears. Buying a house with a friend can be stressful if you do not consider all aspects of co-owing a house.

Sharing investment, mortgages and profits

As friends, you will have to agree on exactly how much investment you are placing for the buy, also how to split the profits and proceeds if you decide to leave the agreement. Mortgage payments should also be divided accordingly. As good as your relationship with the friend is, it is always a probability that it will not last forever. So consulting a solicitor to draw up a declaration of trust with the agreements is recommended.

If the friends share equal investment to buying a house, it is much easier to calculate the subsequent payments on expense and mortgage. However, when one of the friends has more investment, the payments and shares will have to be split accordingly, complicating the process.

Joint mortgages

The joint mortgage is designed for co-owners of the property. Everyone has different circumstances and should consider taking financial advice to go through with the mortgage. Considering income, the expense of co-owners should help decide on the amount of mortgage you can take for the house. Shared payments of mortgage should also be agreed upon to make sure they do not escalate to big arguments in the future.

Registering indifferent shares at the Land Registry

If friends invest the different amount to the purchase of property, it is possible to record unequal shares at the Land Registry. This will require some calculation and may be a solicitors help. Moreover, this will contribute to claim the share if any one of the friends decides to move. Solicitors will take care of this aspects during the conveyancing process.

Keeping records

As the house is jointly owned, it is recommended to maintain records of payments you incur for maintenance, expenses and also income if you decide to rent it out. The records will show proof of expenses if any disagreements arise between the friends. It will help keep track of shares you agreed upon before buying a house.

Keeping things simple

As joint ownership, finance is the most important aspect you have to consider. Starting a joint bank account to pay the mortgage or shared expense is recommended. Using banks help you track payments easier. It is also recommended to record and list out things you own and share.

Making sure you have a mutual understanding with the friend is the most important aspect if you want to benefit from buying a house with a friend. Setting up rules you both agree on important issues for using the property should be a priority.

Buying a house with a friend does have benefits like a less financial burden and shared expenses. However, it should be taken into consideration with many aspects including mutual agreements and legal documents to save your investment.

Mortgage valuation fee and other costs of Mortgaging


Mortgages are loans that are used to buy properties. Paid for in premiums through an extended period of time, a borrower has more to pay for than just the mortgage. Top of the list of expenses for securing mortgages is the mortgage valuation fee. This fee is for professionals who assess and evaluate a property that is to be mortgaged. Mortgage lenders must know the value of a property before issuing mortgages. The property is security for their loan. Repossession is a possibility if the borrower fails to repay his loan. A wrongly quoted price will mean that the lender will have to lose some money if the property needs selling.

Mortgage valuation fees are by no means the only costs associated with a mortgage application. There are many other charges. These fees pay for every service that the lender offers to the borrower. The fees start adding up from the time the borrower sends an application for a mortgage to the time that he fully repays the mortgage. The first fee that is charged even before valuation fee is the booking fee. A booking fee pays for services offered during processing of loan application forms of a borrower. The lender will have to get someone to go through the borrower’s application forms and shortlist the borrower for the mortgage.

The other fee is the arrangement fee. Once a lender is shortlisted and deemed fit for a mortgage, the lender must make arrangements on how the borrower will get the money. There are many documents he will fill. He will also ensure that there is enough money to send to the lender. All these services cost a borrower the arrangement fee. Related to the arrangement fee is the telegraphic fee. This is the cost of transferring an arranged mortgage to the borrower’s solicitor.

Mortgages are usually paid for in instalments over a very extended period of time. A 30-year mortgage can have as many as 360 monthly payments. A lender must account for each instalment that is paid as well as those that are not paid for. He will have to do this during the whole duration of mortgage repayment. The lender cannot maintain a borrower’s mortgage like this without asking for some service fee. The service charge, in this case, is the mortgage account fee. Mortgage account fees pay for the administration and management of a mortgage from the day it is issued until the time when payments are complete.

Other mortgage costs include missed payment fees, mortgage broker fees, higher lending charges, early repayment fees and closing or exit fees. Missed payment fees are charged on any unpaid instalments. Higher lending charges are levied when a borrower takes a mortgage that is more than the value of his property. It protects the lender from losses that could arise if he repossesses and sells the property. The exit fee is paid for the cost of terminating a mortgage at the end of a mortgage period. 

Mortgage Solicitors, Booking Fees And Other Costs


Conveyancing for properties is essential when buying properties in the UK. Whatever type of property may it be starting from residential to commercial to leasehold, conveyancing is mandatory and must be done when buying and selling the property. Moreover, properties in the UK have different demands based on different regions and, therefore, their prices also differ. Some areas have higher fees while other areas have lower. In the previous article, we discussed what mortgage solicitors do and how they help you buy a property in the UK against a mortgage. We also discussed the arrangement fee of mortgage conveyancing that must be paid to the mortgager. In the following article, we will be discussing more on mortgage solicitors and what other fees are there that must be paid to the mortgager. Also, we will discuss the solicitor costs.

Mortgage solicitors and booking fees

Let us again start with the basics of what a mortgage is. A mortgage is the process of buying a property against and conveying to the creditor as security on a loan. In case of buying a property against mortgage, the property itself stays the security. As previously mentioned, buying a property on mortgage is not risky but it can be if you are not sure of being able to pay the credit amount in due time. Therefore, before deciding to buy a property on mortgage it is best to be sure about it.

The UK property market is very competitive with property prices rising each year. More people are flooding the country each year and due to attract of tourists, football fans and more – more residences are needed to shelter these people. Therefore, many properties are available and these properties have huge demand. According to locations, the prices differs and so best property are not always available at good prices.

The job of the conveyancing solicitor is to make sure that you as their client can get the benefit of the doubt by getting the property transferred to your name in the least amount of time possible. And when you are buying a property on mortgage, the responsibility of your solicitor increases as he is bound to give you advice on what decision to take. Also, they help you to process the booking fees of the property that you are planning to buy on mortgage.

The arrangement fee decision and the booking fee

In the last article, we discussed about the arrangement fee. So what should you do about it? You should add the arrangement fee to the amount of loan of the mortgage that you are taking and pay it off immediately. This way, you will not have to pay extra interest rate money on it. Ask your mortgage solicitor to help you get the deal in this manner as soon as possible.

The other type of fee that you must pay when buying a property on mortgage is the booking fee. This booking fee is usually charged by the mortgager to ensure that there is a secured fixed-rate. Thus, it is also known as the application fee. This fee is very less and costs about one hundred to two hundred pounds only. This fee must be paid as soon as the application for the mortgage is filed. This fee is completely non-refundable and so you can never get the money back no matter what happens.

In this two part articles, we discussed the two types of fees related to mortgage solicitor who help you buy a property by taking a loan from a mortgager. The best conveyancing solicitor in the UK will always help you and guide you properly. Therefore, it is best to take service from an accomplished mortgaging solicitor like Nigel Broadhead Mynard Conveyancing Solicitors who do conveyancing for different types of properties in and around the UK.

No deposit mortgage


Most lenders and banks want a deposit to offer a mortgage to homebuyers. For lenders, this represents that the borrower is sensible enough to save money for repayment of the mortgage. However, there are rare mortgage offers where lenders can provide no deposit mortgage for a buyer. The mortgage, however, may or may not suitable for your needs.

Deposits not only increase your chances of getting approved for a mortgage, but a higher percentage of deposit also reduce the interest rate on the mortgage. With no deposit mortgage, it tends to have higher interest rate and some risks associated with it. The no deposit mortgage plan is often referred to as 100% mortgage as its Loan to Value (LTV) ratio is exactly 100%.

The Guarantor scheme

The current scheme that allows for 100% mortgage is the "Guarantor scheme". According to this scheme, a parent, friend or a relative should use their home or their savings as a security with the lender. Moreover, the money has to stay there and cannot be withdrawn for at least 3 or more years depending on the requirement. The person who agrees to do the above is named as "guarantor" on your mortgage. Your income is also considered to calculate the amount you can obtain as a mortgage. If you are unable to pay the mortgage, the security or the house many be possessed as repayment of the mortgage.

Why no deposit mortgage?

The benefits of the no deposit mortgage is the obvious no initial deposit requirement. It is also beneficial if you assume the cost of housing is going to keep on rising. This growth will allow you to remortgage the property in the future to pay off the first mortgage faster.

The downsides

The risk of this mortgage scheme lies in the unpredictable housing market. As the prices of the houses are falling, the valuation of your house subsequently fall as well. This decrease in value of your house puts you in negative equity. This is because the value of your property is less than the money you owe to the bank. This can stop you from moving houses and remortgaging to get a better mortgage deal. For banks, they will not be able to get full repayment of the mortgage as the price of the house below the initial valuation. Hence they charge higher interest rates for this kind of mortgage.

Banks like Barclays offer no deposit mortgage on 3 year guarantor scheme at 2.99% interest rate for first-time home buyers. Lenders like Aldermore, Vernon Building Society and others also offer no deposit mortgages with different interest rates and requirements to qualify.

It is quite clear that you need to consider the risks before going through with the no deposit mortgage offers. It can land you and your property in dismay if you are not careful enough. As the property market is in turmoil and there's uncertainty hovering around the property market, it may not be wise to look for a no deposit mortgage plan. And there are plenty of mortgage offers with 5% initial deposits that don’t have similar risks involved.

How does help to buy work


Help to buy is a government lending scheme that enables new home buyers to get mortgages easily by assisting them in raising a deposit for a mortgage. Traditionally, mortgage lenders usually require borrowers to make a deposit or have security when applying for a mortgage. The deposit can be a percentage of the price of the house that the lender intends to pay. The security is a guarantee that the lender will not lose his money when he gives out a mortgage. The more deposit you make, the better your mortgage deal will be. The bank can offer you lower interest rates and larger mortgages when you pay more deposit. The big question still remains how does help to buy work. Basically, help to buy helps you raise larger mortgages so that you can enjoy a good deal from a lender.

Help to Buy Scheme arrangements before 2017

There are two slightly different arrangements within the help to buy scheme. The first one is the Mortgage guarantee scheme. This scheme was instituted on October 8th, 2013 and was expected to run until December 31st, 2016. The scheme should have expired at the beginning of 2017. The other arrangement is the Equity Loan scheme. It was instituted in April 1st, 2013 and is open until 2020. It is the arrangement that anyone who intends to get into “Help to Buy” scheme from 2017 should join. There is no significant difference between the two arrangements.

Requirement for Help to Buy

The first thing you need to know is the criteria for admission into help to buy scheme. Not everyone is eligible to get help with the scheme. This scheme is only for new home buyers. The buyer must use the property has his sole residence. He cannot rent out this property. The now expired “mortgage guarantee scheme” could be used to buy both new build and pre-existing houses. Equity Loan schemes apply to only new build homes. This means that the scheme is getting tighter in its requirements. The borrower must also prove that he can repay his mortgage. His credit rating must be good. He must also have a steady job or a reliable source of income.

Equity Loan Scheme

In equity loan scheme, a buyer is expected to raise a deposit of only 5% of the property value. The government will then give the buyer an extra deposit of up to 20%. With a total deposit of 25%, you will find it easier to get a good mortgage deal. Ordinarily, you can get a mortgage with your 5%. However, a lender may be stricter on an applicant with only 5% deposit. The extra deposit that you get from the government is a loan that must also be repaid. The loan is interest-free for the first five years. On the sixth year, you will have to pay an interest of 1.75% of the loan. The interest rate will increase by 1% every year until the loan is fully repaid. You may also have to pay for inflation.

Borrowers can repay the equity loan at any time during their stay in the property. You may pay 10% or 20% of the loan provided that the loan is at least 10% of the value of your property. If you leave your property without paying the loan, the government will sell the property and reclaim its money.

Impacts of shared appreciation mortgage


Shared Appreciation Mortgage (SAM) is the now the biggest cause of a headache to pensioners and their descendants. The scheme started out in the 1980s and early 1990s. It all started with banks offering loans to people who had fully paid off their mortgages. This was an interest-free loan that was not to be repaid in monthly instalments. The lenders could repossess the loan in future after the sale of their houses upon the death of a beneficiary. In addition to the loan, the borrower had to repay the bank 75% of the profit that they made from the sale. The reasoning behind this scheme was that cost of housing would appreciate in future. That is why it was referred to as shared appreciation mortgage.

Initiation of Shared Appreciation Mortgage

Shared appreciation mortgage was a good deal at face value. The borrowers were getting handsome mortgages at no cost. They were not required to pay any instalments. They could live in their homes for years before worrying about the loan. Most banks did not apply any interest to the loan. This did not seem threatening because it was great to have loan without interest at that time, and the borrowers did not have to start repaying immediately after the loan was offered. Everyone saw easy money. A good number of borrowers consulted financial advisers and solicitors before taking the loan. The solicitors and advisers gave them the green light to take the loan. Even the prime minister of the UK at that time was thrilled with the scheme. He dubbed the scheme a Millennium Product. A sample of SAM loans was displayed at the Millennium Dome in London. You can only imagine the smile on everyone faces during the era of SAM.

Woes with Shared Appreciation Mortgage

The smiles of SAM era have now turned into frowns and tears. SAM is now haunting everyone who participated in it. SAM was offered with the condition that it will be repaid upon sale of a house or when the borrower dies. The borrowers are now either very old or dead. The living yet old ones cannot pass their properties to their posterity. If they do this, they will have violated the terms of the SAM. Most of these people cannot repay their loans without selling their properties. If they sell the property, the bank will take so much of their money that they will have nothing left to buy a different house. Given that they are old, they cannot properly take care of these properties.

Imagine a loan of £13000 for a property worth £50 000 in 1991. The property has appreciated in value to £250000. If this property is sold, the bank is entitled to 75% of the increase in value. This is 75% of £ 200000 and will be £187 500. The homeowner must also repay the original loan of £13 000. This means that the bank will get a total of £200,500 for sale of a house worth £250000. The owner will get only £49 500. You cannot buy a house with £49500. Once you sell your property, you are rendered homeless.

All about web/online conveyancing for remortgaging a property


Purchasing, offering or essentially remortgaging a property all oblige the administrations of a conveyancer. This is on the grounds that a home loan is an advance secured against a benefit.

Indeed, even a remortgage includes the bank taking a charge. To do this they should make certain that the benefit over which they have this charge has great title and accordingly gives them the security they have to propel the cash.

Opt for online conveyancing

Most landowners utilise a neighbourhood specialist, frequently the family legal councillor who may have represented their guardians even great folks. This individual affiliation together with the neighbourhood closeness is habitually the fundamental purpose behind the on going relationship, regularly with sparse respect for the business substances of getting the least expensive quote or most fitting administration.

There are presently truly many solicitors that claim to offer an on-line administration. You should simply sort in the expression to Google to be assaulted by a heap of organisations.

Benefits of online conveyancing for remortgaging

A major in addition to of an on-line administration is adaptability. Since a significant number of the organisations are committed to conveyancing as opposed to being a piece of a lawful practice they are centred around this part of the law. This implies that not at all like numerous solicitors’ practices.

Many solicitor are not active in communication via mail,,so clients need to send their message directly to the organisation. This may be really hectic.This can be a genuine agony when you have to affirm, acquire or give data. Attempting to reach an occupied solicitor every now and again is by all accounts an outlandish assignment.

Large portions of the on-line conveyancers offer email overhauls; some even guarantee to give you content redesigns too.The other huge favourable position is that the administration doesn't oblige eye to eye gatherings. These gatherings whilst consoling to a few individuals; they like putting a face to a voice; they are likewise prolonged and habitually include requiring some investment .

Comparison of the costs

Overall Cost for normal conveyancing

Expenses may start with a fundamental £250 in lawful charges; then there may be extra expenses like Office duplicate entries ,Nearby pursuit fee,Land enlistment fee ,Land registry fee etc. So what began presently sensible £200 - £350+ VAT quickly turns out to be more costly like closer to £700..The primary you think about additional expenses being the point at which you get the bill, by which time you must choose the option to pay.

Overall Cost for online conveyancing may be less expensive

In online conveyancing remortgaging a property is less expensive. there are the economies of size of firms devoted to giving a conveyancing administration instead of being a piece of an expansive based legitimate practice. Also, is the ability of online organisations to utilise protection strategies for enrolled properties instead of doing extravagant and pointless hunts. This reasons save actually many pounds off the expense.

A fast hunt online demonstrates that it is currently conceivable to get the same administration impressively less expensive. Hope to pay £300-350 rather than the almost £700 in normal conveyancing.Keep in mind while getting a quote verify that it is separated so you can see what it incorporates. Watch out for additional charges, for example, seeks, or the telegraphic exchange expense for sending the stores to reimburse.


There are disadvantages too with utilising an online administration.

That is a few administrations don't promise to utilise the same conveyancer completely through the procedure. Thus, a few purchasers gripe of feeling that they are continually addressing an alternate individuals, as you would in a call focus. This can be favourable position. This is on the grounds that these associations are likewise used to working in ways that more than one individual from staff manages every case.

But above all, the benefits of online conveyancing is much greater than its drawbacks.

Furthermore, if you want a good and reliable online conveyancing website ,,visit at this website, https://www.nbmlaw.co.uk/.

Decisive things to consider when buying a house


People consider buying a home as one of the most important investments of their life. Most people will have a very detailed view of their new home. However, buying a house needs substantial investment and detailed analysis of the house and the buying process. An average person does not buy many houses in their lifetime. Therefore there are many things to consider when buying a house. Here are some things that will help you decide on things to consider when purchasing a home.


Location plays a significant role in people’s lifestyle. You have to work and commuting to work up valuable time. It is a daily recurring expense and will take up an enormous sum of your income. This makes it crucial to choose a location close to the area you work. Also, other establishments like school, stores and entertainment venues are important. If you want to live in seclusion, then a rural area should be a preference.

Mortgage deals

As people may not have enough to buy their first homes, they decide on taking up a mortgage. It is vital to compare mortgage products from many banks and lenders to get the best deal. The amount you can save can help you afford a different amenity. A longer mortgage deal will have higher interest rates, and that can cause long financial drain from your income. Using mortgage calculators will help you calculate benefits with the mortgage deal you want to choose.

If the monthly mortgage rates are within your budget, it is safe to consider buying a home. Getting a huge mortgage without the means to pay for them can cause you to lose your home.

Buying Apartments vs. Homes

Apartments are usually cheaper and offer much more benefits than a home. Apartment complexes are maintained commercially, and you do not have to worry about many tasks, appliances and maintenance. If you run into any problems with the appliances, water supply, heating or any other inconvenience, you can call the landlord and get it fixed. They will likely have a repairman on call to get it sorted quickly. With a home, you will have to call the repair man and wait till they reach you. You also save on insurance taxes, and you do not require to pay property taxes on an apartment. If you move a lot, apartments are a better option.

Total cost of buying

When buying a home, you need to pay slightly more than the actual value of the home. Conveyancing process should be completed to sign you as a legal owner. Conveyancing needs to be very strict for a home. You and your solicitor will need to sniff out many problems that may hinder you in the future. This requires surveys to be conducted based on your solicitor’s advice. The process can take long and cause you stress. Disbursements like stamp duty tax, land registry tax, and other taxes are requirements when buying a house. So you will have to save up extra than just the value of the house.

Ownership freedom

It is the most important aspect of what you can do with your house. You can build or add any feature you want without dealing with the landlord. You can enjoy privacy and security of your home. After you completely pay off your mortgage, you will have no need to pay monthly fees.

Other considerations

You have to consider exceptions that might occur when buying a house. You could lose your job and fail to pay the mortgage rates. Once you have bought the house, you will have to fix every defect it has. Sometimes people failed to identify problems when buying a house and may have to spend an enormous amount on getting it fixed. 

Getting a loan through equity release schemes


An equity release is when a homeowner uses all or part of his house as a loan security. The owner is given money in return for a share in home ownership. The lender does not occupy the house. He only claims a monetary share of the house which he will reclaim when the house is sold. The house can only be sold when its owner dies or moves to a lifetime home care. Till then, the homeowner is the sole occupant of the house.

Not everyone can qualify for home release schemes. A homeowner must be over 55 years to be eligible for the scheme. He must have little or no mortgage on the property. The loan will be used to pay any balances on mortgages. This way, the lender will not have to pay off pre-existing mortgages upon the sale of the house. Loans given are usually at least £15000. Anything lower than that amount cannot be released. The value of the property also determines your eligibility for equity release loan. Only properties worth more than £75000 are admitted into the scheme.

Types of Equity release schemes

There are two main types of equity release schemes. These two are lifetime mortgage and home reversal mortgage.

Lifetime mortgage scheme

Lifetime mortgages allow you to retain total ownership of your home. You do not have to pay any rent. This is contrary to shared ownership or the home reversal type of equity release scheme. An applicant for a lifetime mortgage must be at least 55 years old. If he is living with a partner, the partner must also be 55 years old.

Different lenders have various ways of handling lifetime mortgages. A lender may allow you to enter into no negative equity guarantee plan. This program ensures you that the loan you take plus accumulated interest will not exceed the value of your property. The advantage is this scheme is that you will be able to pay the mortgage in full from the money made from the sale of the house. You will not be required to pay the balance of the loan from your own pocket. No negative equity prevents the horrors of endowment mortgages that many people in the UK are now putting up with.

Home reversal scheme

The other type of equity release scheme is the home reversal. An individual who enters into the home reversal plan immediately loses ownership of all or part of his house. This share of the house that the original owner loses goes to the lender. The original owner must, therefore, enter into a lease with the lender where he may live rent-free or pay or rent token to the lender if he has to live on the property. If he moves out or dies, the house is then sold and the money used to repay the loan. To qualify for the home reversal plan, you and your partner must be at least 65 years old. The loan issued is equal to or less than the current market value of your property.

Why you need help to buy remortgage properties


Most people use mortgages to buy homes. Remortgaging is a new scheme for the purchase of property. Banks are now inviting current mortgage holders to take remortgages. Buyers need help to buy remortgage and properties on remortgages. They also need to know costs of remortgaging and the benefits of remortgaging.

You can get a loan by remortgaging a property. The loan-to-value is an important factor to consider when remortgaging a property for a loan. The lower loan-to-value increases your chances of getting the remortgage. Banks tend to shy away from properties whose values are lower than the amount of money they have to give away.

Things that help when you want to remortgage

When you want to remortgage a property, you must entice the lender to accept your terms. Most lenders evaluate a building by looking at it from outside. Very few actually get into the building to get a better approximation of its cost. You have to get the lender appreciate the value of the building as it is. Get them to take a look at the inside of the building. If you have done renovations recently, you should tell the lender this. Better still, give him documents to prove that you have increased the value of the property.

Remortgaging can help you consolidate your debts. You can use the money you get from remortgaging to settle other debts so that then only debt you have is the money from remortgage. This can only work if the money you will get from remortgaging is sufficient to settle the debts you want to clear. You have to hire a professional to help you evaluate your property before seeking remortgage.

Interest rates on mortgages are low at the beginning of the mortgage but rise as years go by. Remortgaging can help you take care of additional financial responsibilities that accompany increased interest rates. You can even avoid the high-interest rates by paying off the balance of the mortgage from the money you get from remortgaging.

Securing a Remortgage

The borrower must think about the cost of securing a remortgage. If you use a broker, then you should expect him to charge a fee. Some agents offer fee-free services. You should determine the services every broker provide and choose one that fits you. If you want to reduce your expenses, then the free broker is right for you. Other costs of remortgaging include legal fees, valuation fees and administration fees. You can use Annual Percentage Rate of Charge (APRC) to find out all costs of remortgaging, from the costs of securing remortgage, to the cost of interests.

Remortgaging can help you buy multiple properties at the same time. This you can do by using money from a property that you have remortgaged to buy another property. The best thing about this is that the properties you buy from remortgage will not even be attached to the lender. The property that is remortgaged will protect other properties from being securities to the debt. If you want to remortgage to buy another property, you have to ensure that the properties you are going to buy are of lesser cumulative value than the one you are remortgaging.

Shared ownership staircasing advice


The United Kingdom's government is dedicated to creating more home ownership. This goal has spawned a few scheme to help people with different backgrounds, low-income and disabilities. Shared ownership is one of those programmes that help individuals with low income to own a portion of the house which is between 25-75% of the total property. The scheme also allows shared ownership individuals to increase their share of the property with a method called staircasing. Allowing shared ownership of the property to complete ownership increases enthusiasm among buyers. Here’s some staircasing advice you should consider.

Shared ownership is shared with a housing association. The partial ownership share to some extent limits your control over the property and operation. The housing association is responsible for major modifications and before you need any special adjustment on the property. In staircasing, if you increase your ownership from 10 percent to under 100 percent then it is called partial staircasing. If you want to increase your ownership to 100 percent, it is known as full staircasing. To go ahead with staircasing, a minimum of 10 to 20 percent increase is required until the final staircasing for 100 percent.

The process of staircasing is less troublesome and faster than conveyancing for obtaining shared ownership. Still, that can be daunting for someone inexperienced with legal responsibilities. The process of staircasing normally includes the following process:

  • Dealing with the appropriate Housing Association
  • Getting a valuation of the property
  • Contacting with the mortgage lenders
  • Completion of Memorandum of Staircasing

Dealing with the relevant Housing Association

The housing association is responsible for renting the share of the property you do not own. You have to buy additional shares of property until you reach 100 percent ownership. The process includes contacting the housing association to allow you own an increased share of the property. The process can be made efficient with the help of an experienced solicitor. Their staircasing advice can speed up the process and help with legal aspects of the process.

Getting a valuation of the Property

When you need to increase your share, you have to consult the RICS for valuation. An RICS surveyor will valuate the current cost of the property. Moreover, the amount is divided by the percentage of the property you decide on increasing ownership. The housing association can appoint a surveyor, but you have to finance the operation.

The valuation cost is considered valid for three months, so the staircasing should complete within this period. Failure to complete staircasing within the period will require a new assessment.

Contacting with the mortgage lenders

If you are obtaining a mortgage for staircasing or remortgaging the property, it is important to complete mortgage deal. This is going to finance the staircasing of the property. It always helps to have a good credit rating for a speedy mortgage approval.

Completion of Memorandum of Staircasing

If you are acquiring an additional share of the property and not the complete share of the property, the housing association will send you the Memorandum of staircasing. This is done after the payment for the share is complete. You have to sign this document, and it is registered with the Land Registry. If you have appointed a solicitor, they will handle the Memorandum of Staircasing for you.

How to get a self employed mortgage


The primary qualification for a mortgage is the ability to pay back. People who are employed in steady jobs have pay slips that help prove that they can repay their mortgages. Things are a bit different for the self-employed. Self-employed people have fluctuating incomes. Mortgage lenders find it hard to lend money to people who do not have steady incomes. They fear that these people cannot repay the loans. This does not mean that there is no self employed mortgage for people without incomes. It only means that these mortgages are harder to get.

The self-employed mortgage process

Self employed mortgages were easier to get before the credit crunch of 2007. People doing private business could easily walk into banks and come out with loans. The mortgages were actually referred to as self-cert mortgages. Their processing was fast-tracked without the need to prove incomes. The self cert mortgages were aimed towards freelancers, businessmen, contractors and people with multiple sources of income. Unfortunately, some people took advantage of the fast tracking and borrowed money they could not repay. About the same time, there was economic depression. These forced mortgage lenders to establish credit crunch. Since then, borrowers are now forced to go an extra mile in proving their creditworthiness.

Self employed mortgage is not really a word that is officially recognised by mortgage lenders. The only difference between this type of mortgage from other mortgages is that the borrower has a lot to do to prove that he can repay the mortgage. Lenders have a checklist that they tick when assessing a self employed mortgage applicant. These are the things that you need to know before applying for a mortgage because they determine whether your application will be accepted or rejected.

Requirements for Self employed mortgage

The first thing that lenders ask borrowers is their financial accounts. It is expected that any self-employed person should keep a record of his incomes and expenditures. This is the basis for the request of the borrower’s financial record. The account will enable the lender to determine if you can repay. The financial history should go back a few years. Most lenders ask for a two year’s account. The account must also be up to date. You must ensure that the account you provide is drawn by a certified or chartered accountant. A lender may reject an account that is drawn by either the borrower himself or any other unqualified person. Rather than your business financial account, you may also use your tax return to get a self-employed mortgage.

You must also ensure that your credit history is perfect. Lenders can be more exacting with credit histories of self employed people than they are with salaried people. The credit history of a self employed person shows how frugal he is with his money. A self-employed individual with a good credit history has more chances of getting a mortgage than a salaried person with similar credit history. Paying your credits on time is important. In case you have a problem with your credit company, make sure that you sort the problem out before applying for a mortgage.

How to go ahead with financing modular homes


Modular homes are homes that are built offsite and are physically fitted together on site of your choice. Often called as prefabricated home, their popularity is on the rise because they are cheaper, faster and customised. While they may not be built from ground up with foundation, they can be constructed to withstand high weather impacts.

In financial terms, they have similar rates of home loans, insurance premiums and taxes as site-built homes. And conveyancing of these home are performed similar to regularly built properties. As modular homes can be highly customised as per your need, there is much consideration you have to make. Financing your modular home is one of the first step in the process. These steps will help financing modular homes.

Prequalification Estimate

The first step is to calculate how much money you are going to spend on your modular home. These estimates are required to get approval from the bank for the loans. They will assess your calculations and let you how much they can lend you with the interest rates for the amount.

Comparing rates

As you are financing your home, it is recommended to check a few banks to see what their interest rates are like. You will need to search for a bank with interest rate you are comfortable with. The small difference in the rates can amount to huge sums of savings in mortgage payments.

Apply for Loan

After you have chosen the land where your home is going to be built and a particular modular home plan. You will need to apply for the loan with the bank of your choice. Several verification checks are done to check the cover for the fees like credit check, proposed contract of the modular home of your choice, recent loan statements and other details.


If the application process goes smoothly, you will be sent a letter of commitment from the bank. You can now show the letter to the modular home manufacturer or the landowner to let you buy the property and home. The commitment letter will contain conditions and restrictions you need to comply with. You may need to provide blueprints, and costs estimate before the loan can be closed.

Scheduling Disbursement

As your mortgage loan is approved, you need to schedule the amount you have to pay during the construction of your home. These include clearing of the land, the building of the foundation, the arrival of the modules to the site, and finishing the construction. As every milestone completes successfully, you have to make sure the vendors are paid. If everything checks out, the bank issues a check which you can use to pay the contractor.

Closing the Mortgage Loan

You will now show the disbursement schedule and clear other concerns from the bank like building permits. This will conclude the bank to sign the final documents approving your mortgage loan. You will need to pay for the closing costs involving lawyer fees and title fees. You will need to pay Construction loan payments and then permanent mortgage loan payments after the construction completes.

Construction of your modular home

Finally, with all documents settled, the manufacturer can start building your modular home. For every milestone reached, you will need to pay out vendors as per the disbursement schedule. You will also have to start making payments to the bank for the amount which has been disbursed. So the fees will increase as it progresses. If the construction time is condensed to 2-3 months, you will minimise the construction loan payments to the bank.

Transfer of Construction Loan to a Permanent Mortgage

When the construction completes, the bank assesses the house. After satisfactory inspection, the loan is turned into a permanent mortgage. As per your mortgage agreement, you will have to continue paying the payment for the interest and principal. You will need to pay transfer fees during the process.

This is how financing modular homes is done in the United Kingdom. You will have your perfect home for your family in the shortest time possible without the long wait and mess you have to deal with on-site home builds.

Everything about Remortgage Conveyancing


Remortgage Conveyancing is the conveyancing work in admiration of a remortgage exchange where the home loan moneylender is a bank or building society. In spite of the fact that this aide is principally gone for conveyancers since a loan specialist won't permit a borrower to complete his own conveyancing thus DIY conveyancing won't be conceivable, it will ideally give remortgage customers an understanding into the procedure moreover. You should know and understand the details of remortgage conveyancing completely before beginning the conveyancing work. A few organizations do take a business view in admiration of remortgages and will do significantly less stringent checks

What is remortgage?

Remortgaging is a procedure by which you can change you're loan specialist. The bank is the individual or firm which is loaning or has loaned you cash to purchase a property. Until you reimburse the advance taken from the moneylender, the bank will hold your property's title deed. A title deed is an authoritative record demonstrating that you are the property's proprietor. Without the title deed, it is difficult to offer your property. A conveyancing specialist, who is an expert in remortgage conveyancing, can assist you with excursion in such manner. The procedure is convoluted and exceptionally tedious.

Ventures in remortgage conveyancing

Applying for title deeds and recovery articulation

your specialist/solicitor will request your home loan record number and methodology your present bank with the same to apply for your title deeds. Once got he/she will check the title deed for any confinements or exceptional condition so that he/she may pass on it to your new loan specialist. The specialist/solicitor will likewise apply for a reclamation articulation from the present loan specialist at the same time to ease your home loan and exchange it to the new moneylenders. The new home loan must cover the present home loan.

Title issue:

At the point when acting in a remortgage some take the perspective that it is not important to execute as inside and out a title check as you would if representing a buyer since you are just needed to watch that the property is a decent security for the home loan advance. Remortgage conveyancing checks have turned out to be much excessively essential and the way that if a loan specialist needs to repossess, it will be offering to a person whose conveyancer will perform an intensive check and will anticipate that any deformities will be rectified, and not to another bank. The reality of the matter is that sure matters a loan specialist is unrealistic to be occupied with.

Important searches:

A neighborhood power hunt will be done to check the title deed and clear it. This is fundamental before the new bank can focus on giving you. The consequences of the quests can influence the property's estimation. The quests are: Neighborhood, Water and Liquidation seek, Land registry etc. The specialist/conveyancer will send you certain structures in which you have to top off insights in regards to your property once more. You will need to certify the adjustments that may have been done after the property was purchased. In the event that yes, then building regulations and authorizations must be connected along as evidences. On the off chance that the property is leasehold, it must be specified. Else, the property will be thought to be a freehold house.

Leasehold Properties issue:

On the off chance that the property is leasehold, you'll have to check the lease and you'll have to raise certain enquiries with the landowner/overseeing operators to check such things as whether the administration charges and rent are paid cutting-edge, who you have to serve notification of charge on and so on.

Contract deed

After the new loan specialist affirms of your recognizable proof papers, the moneylender will forward you a home loan deed which you have to sign in vicinity of a witness, for the most part a specialist. Once the deed is marked, your specialist can request your home loan monies from the new moneylender. On a finish date, your old home loan will be paid and the new home loan will be discharged. Any equalization cash owed by you must be paid by a concurred date.

Things to consider for first time buyer mortgage


The process of buying your first home is an adventure full of excitement and worries. First time buyers are very perplexed when it comes to the financial process since it requires and substantial investment. As a first time buyer, they have less familiarity with the mortgage process, legal obligation and requirements. This can mislead them into big problems without their knowledge. The first time buyer mortgage process is also a process one needs to understand to make sure best options are picked.

Basics of Mortgage

Mortgages are long term loans specifically for buying a house. The average time for repayment in the UK is 25 years, but it may be shorter or longer depending on the bank. The eligibility of the mortgage amount depends on the value of the home you are planning on buying. It serves as security for borrowing the money from the banks. Moreover, as with other loans, you need to add interest on top of the mortgage amount. This rate depends upon the mortgage plan you choose. This requires comparing many mortgage options.

Loan To Value (LTV) ratio

You get a better mortgage deal if you are ready to deposit a higher percentage of the value of the house you are buying. If you deposit £20,000 for a property worth £200,000, it is 10%. The ratio of your deposit and remaining value of the property is Loan to Value (LTV) ratio. Lower the ratio, the cheaper the mortgage rates.

There are online mortgage calculators which offer to calculate the amount of loan you could get with your salary, expenses and deposit. Other calculators can calculate monthly repayments when you enter the value of the home, deposit and mortgage repayment duration.

Type of mortgage payment

When you are looking for mortgages, you will come across “repayment” and “interest-only” mortgages.

On repayment mortgage, you will pay interest and a part of mortgage amount every month. With an interest-only mortgage, it is a requirement that you only pay the interest on the mortgage through the mortgage payment period. You can choose to pay part of mortgage during the period to completely pay off the mortgage. If you fail to pay the entire mortgage, it is considered outstanding mortgage and can be subject to seize.

Fixed rate or variable rate mortgages

As they are obvious with their names, fixed rate mortgage have fixed interest rates. However, they are often for a short period of one to ten years. Variable mortgage interest rates are dependable on the bank you choose which can be same or below the standard rate of Bank of England.

First-time buyers have limited number of choices because they often only have the ability to make small deposits. There are some schemes from the government that help them get mortgages with lower rates. However, they have eligibility requirements that you have to fulfil. Your best option to get a good deal on a mortgage is to be informed about mortgage policies.

Consider the rates, your income and expenses as you compare mortgage rates from different banks and lenders. There are also various government scheme to help first-time home buyers with tax-free savings and bonuses. Consider them if you are looking to buy a new home in the future.

How long does it take to remortgage a home


Remortgaging allows you to recover the money you have been repaying your original mortgage lender by paying off the balance of his mortgage and pocketing the rest of the money. You pay off this balance from the money you get from remortgaging. Because the amount of money you get from remortgaging depends on the value of your house, you will be able to keep part of these funds after repaying the balance the original mortgage. There are many reasons why you may want to remortgage. The big question is how long does it take to remortgage. The more urgently you need the money, the shorter you will want the remortgaging to take.

Be actively involved

The first thing that you need to be clear about is why you need to remortgage in the first place. Your reason for remortgaging will push you into processing the mortgage faster. Most delays in processing remortgages are human. When you do not feel the urgency to process the mortgage faster, you will slacken, and the remortgage will take longer. You must actively follow up everyone involved in remortgaging your home if you need the money sooner. Consider two people, one who want the money to build an annexe and the other who wants to pay school fees. The one who needs the money for building an annexe is not confronted with an emergency. His needs are not as time bound as the one who wants to pay for school fees. He will let the mortgage processing process takes its own course.

Planning Ahead

Remortgaging will take a shorter time if you intend well before starting the process. There are many steps involved in remortgaging. Some of these steps can take quite long to accomplish. They may take even longer if you are not adequately prepared. You must have all documents ready before you start remortgaging. Make sure that everything the parties involved in remortgaging want is ready when they need it. You can only do this by anticipating what will be necessary. You may find it hard to know all documents required from you during remortgaging. If you are doing it for the first time, you can ask a solicitor about the things you need in getting a remortgage.

The Remortgaging process

Remortgaging involves the same step as mortgaging except now you have two loans to process. One of the loans will close, and the other starts. Your current lender will expect you to pay off the balance of his mortgage plus some fees. Some of the fees you will pay to include closure charges, early repayment charge and missed payment fees. Closure or exit fees are paid for when the mortgage terminates. It can be replaced by early repayment charge if the mortgage ends before the prearranged time. Most people who remortgage find themselves paying this fee rather than the closer fee.

The new lender and other people you recruit to help you with remortgaging may affect how long you remortgage. You will need a solicitor during the whole process. Make sure that the solicitor is highly efficient. He must be fully engaged in this duty. You can get such a solicitor by referral or from one of the many solicitor review websites. 

How to go about Buying a House Without a Mortgage


Buying a home is never easy. Houses are some of the most expensive properties in the UK. Real estate agents have come up with various methods of getting people to own homes without feeling the financial burden. They have come up with commonhold ownership and leasehold ownership to save people from the financial trouble of acquiring freehold properties. Mortgage lenders have also introduced various loan packages to help people in financing home ownership. These methods, though effective, have proven to be a burden in the long run. Commonhold and Leasehold properties have their disadvantages. Mortgages become a burden of their own in due time. These difficulties have prompted people to look for ways of purchasing properties in cash and enjoy the kind of home ownership that they desire. This is why many people are now paying for homes in cash. Buying a house without a mortgage might not be easy, but it gives you much relief once you are settled in your new home.

Plan early

Housing prices aren’t going down. And if have a plan of buying a house without a mortgage, it will take some planning. Check your finances, cost of living, salaries and other needs you’d like in your new house. Take a general look at the real estate trends in your area. And then find a house that suits you best. You can talk to real estate agents and find out the current housing plans and if there are any changes expected in the future. Once you find a good house, ask its price. Also, see if there are any special payment plans offered. You will be surprised at the number of real estate agents are considerate to prospective buyers in their payment plans.

Your ability to buy a house without a mortgage is largely dependent on your financial status. If you have the money, and you have found a suitable home, then you can initiate conveyance. All you have to do is talk to a solicitor. He will guide you through conveyance. He will tell you the documents that are required and the kind of research needed. The length of time till you purchase the house will vary depending on many factors. Your conveyancer will advise you on this too.

Save with the rising prices in mind

If you do not have enough money to buy a house in one ago, then you might want to start saving early. The sooner you get saving, the higher your chances of buying the house faster. Keep a little money aside from time to time. You may consider calculating the amount of money you save as proportion of the price of the house. This will give you a rough estimate of the time till your savings are enough to buy the house. Take into account possibilities of increase in house prices. You can talk to real estate agents or other experts about any foreseeable increase in house prices.

Payments by Instalments

Some people do not have the discipline to save money for that long. There is always a temptation to withdraw the money and use it for emergencies. If this is your problem, you can get around it by paying for the house in instalments. Some real estate agents accept small payments for a house. Look for them. The money you pay cannot be refunded. This method of payment is a security against any temptation to spend the money that is reserved for the purchase of the house.

What is involved with a Remortgage?


If you are looking to release equity from your home through a remortgage then your mortgage company will likely insist that you hire a conveyancing solicitor to handle the paperwork. Depending on the size of the loan that you are seeking the mortgage company will require that they have a charge over the property. This is so that they can have a legal precedent to repossess the property in the event that you fail to meet the loan payments. So the mortgage company will require that you get a conveyancing solicitor to do the work at your expense.

There are many reasons why a person might remortgage their house but below are listed some of the most common:

  • if they are investing in a second home as a rental property
  • if they are buying a home as a holiday or retirement project
  • to raise capital to inject into their business
  • for home improvements to increase the value of their house
  • to buy a car or the holiday of a lifetime

Whatever the reason for the loan a property offers a flexible investment which is fairly easy to raise capital against. This is because the value of a property is practically guaranteed to rise over the course of a long term investment and so the mortgage company will be happy to lend money in the form of a remortgage based on this certainty. Of course if the housing market drops in the short term you could potentially find yourself in a position of negative equity, where you owe more on the property than it is worth. This is not a problem while you can afford to make payments but otherwise may lead to repossession.

It is very common for people to have more than one mortgage registered on their house. One problem that can arise from this is when you come to sell the house. It is more time consuming for your conveyancer to remove more than one charge from the property so they will probably raise an extra fee for each extra mortgage that they have to redeem on your behalf. Even if you finish paying your mortgage the charge may remain until a conveyancing solicitor is paid to get it removed. Just because they still have a charge on the property doesn't mean that the bank would be able to repossess your house though if they had less equity invested in the house than you.

You might wonder why the bank can't just increase the mortgage account that you already hold with them. This is probably because it would be more work for them to shut the old account down and create a new account with a bigger limit. When you entered into the original contract the term was set and the interest payments calculated. The new loan would likely involve a new product with a new contract and a different set of terms and conditions. It is easier for them to add the new loan as a new product. This also means you could potentially get different remortgages from different lenders.

NBM conveyancing solicitors are on the panels of all the major mortgage companies so we know we can act for you in your transaction. If you plan to go to another solicitor you should first check that they can represent you and your mortgage company.

So if you have read this article and considered the information within it and you think arranging a remortgage might be the right way for you to release some equity from your home why not try the instant quote system and check the price of NBM Solicitors remortgage service?

The growth of the Equity release market


Equity release is a scheme in which people over the age of 55 can place their homes on security to effectively take out a loan. The equity release scheme is helpful for individuals who want a lump sum or a regular income for their retirement, but do not have enough in their savings. The scheme safely uses your home as a security to extract cash out of your property while you still own it. The payment for the loan is made after the sale of the property is complete or when the individual dies. The equity release market has been surging in the United Kingdom in recent year.

Equity release market growth

As the policymakers’ outlook of equity release improves and with a good relationship with the government and Financial Conduct Authority (FCA) the equity release market is expected to garner more interest from the public. The “no negative equity” also guarantees that the money you need to pay back is fixed no matter how the property value changes in the future. According to the Equity Release Market Report of Spring 2017 from Equity Release Council:

  • 2016 was the record breaking year for equity release growth.
  • The first half of 2016 saw 37% growth, and the second half was up by 38% compared to the same period in 2015.
  • 65% of customers opted for drawdown option, 35% chose lump sum option and a small number took out home reversion plans.
  • This growth accumulated a huge total of 1.24bn of financial transactions.

Home reversion scheme

There are two types of equity release scheme popular in the United Kingdom, home reversion scheme and lifetime mortgage. An individual has to be over 65 to be accepted in the Home reversion scheme. In home reversion scheme, the equity release only buys a share of your home (say 20%). The amount you get is, however, lower than the current market value. You do not have to move your assets or let anyone move in. The equity release company does not get any money until the property is sold. Once the individual dies or moves to a different long-term settlement, the property put on sale, and the company gets a percentage of the share it bought.

Lifetime mortgage scheme

Lifetime mortgages are the more popular of the two scheme. Here an individual borrows an amount equal to a relative value of their home. An individual over 55 can start with the home reversion plan. The person needs to pay interest on the loan. They do not typically need to pay any amount until they die or the property is sold. The interest is then compounded which could mean with the current rates, the debt could double in 11 years. Equity Release Council reported a growth of 22% in customers with lifetime mortgage scheme in 2016. The trend of increase have been growing since 2013 and equity release market is one the fastest growing mortgage market in this period.

Costs of Equity release scheme

The cost of equity release is quite expensive compared to regular mortgages. The lifetime mortgage scheme can in estimate cost three times more in 20 years, and with home inversion plan you may only get 20% advance with a 70% of your property in used in the scheme. It should be considered if you are facing a difficult financial situation without the fear of losing your home. Although FCA handles the marketing of equity release, you may want to consult with a financial advisor registered with the FCA.

For ageing people, this scheme provides a comfort without dependence on family or relatives. Still owning an accommodation without fear of losing it makes it an interesting scheme. The growth also reflects that many individuals are interested in this financial assistance. However having a clear picture of the scheme will make help you the right decision. 

How porting a mortgage works


Porting a mortgage refers to the transfer of a pre-existing mortgage product to a new property. The transfer is arranged by the buyer and his mortgage lender. Mortgages are transferred for many reasons. A buyer can transfer a mortgage because he wants a bigger house or when he needs to relocate to a different place. Not every buyer can qualify for this service. Lenders have different criteria for allowing porting a mortgage. Porting mortgages is a rather new service. Some lenders have not yet embraced these mortgage transfer services. It is important to ask your lender if they can allow you to port mortgage before moving into a new property.

Remortgaging or porting a mortgage

The success of mortgage transfer depends on the kind of agreement that a buyer and his lender has. A lender may charge higher interest on transferred mortgages. If the interest rates are not appealing to you, then you may remortgage rather than port the existing mortgage. The advantage of porting rather than remortgaging is that a buyer gets to work with a lender he is used to. This lender has gone through your credit ratings and has seen how reliable you are. He will easily consider your desire to port. It is always important to be in a good relationship with a lender. You never know when you will want the lender to help you port your mortgage.

Prerequisites of porting a mortgage

When you are porting your mortgage, the existing mortgage will have to be paid in full. Moreover, you will have to reapply for porting a mortgage. Full settlement of existing mortgage usually happens before the scheduled time when the mortgage was to be repaid. So there can be an early repayment charge and exit fee. Part of the settlement price goes to mortgage repayment. The balance can be used by the buyer to arrange for a new mortgage.

Fees related with porting a mortgage

Porting of mortgage attracts various fees. When it comes to fees, mortgage lenders treat ported mortgages more or less like any other mortgage. The same fees that applied to the first mortgage will apply to the ported mortgage. The very first fee that a buyer will require you to pay is the early repayment fee. Early repayment fees are charged on mortgages that are repaid before an introductory period. The fees cater for the losses that your lender goes through when they close the deal with you earlier than they expected. These charges are usually 1% to 5% of the outstanding debt. Almost all buyers who want to port their mortgages have to pay outstanding fees because they have to close their existing mortgages before applying for new ones.

Other considerations

The home that you are porting your mortgage into can be more expensive or less expensive than your existing home. These two situations are treated differently by your lender. It is easier port a mortgage to properties that are less expensive than the current one. Some mortgage lenders will not allow you to transfer the mortgage to properties that are more expensive than the one you are living in. The decision to allow a buyer to port or not to port depends on whether the buyer has been repaying his mortgage on time, as well as the credit rating of the buyer. All these are factors that you must put into consideration before you port a mortgage.

Facts about a fixed rate mortgage


Fixed rate mortgages have constant instalments and interest rates. These do not change during the whole mortgage period. Other types of mortgages are adjustable mortgages and hybrid mortgages. Adjustable rate mortgages have interest rates and monthly instalments that change during a mortgage period. Hybrid mortgages start as fixed rate mortgage but later have their interest rates or instalments varied according to the agreement between the lender and the buyer. Fixed rate mortgages allow the buyer to plan his expenditure on mortgage ahead of time. However, they are so rigid that they do not take into account changes in inflation or variations in incomes of the lenders.

Fixed rate mortgages are usually paid for after every month. A thirty-year loan will be paid for twelve times in a year and have a total of 30 instalments. Before all payments are paid for in full, the owner will not claim absolute ownership of property. The property still remains a collateral for the lender that issued the loan. You may shorten the duration of payment to 10, 15, or 20 years. Remember that for every given principle, the shorter the duration of loan repayment, the larger each instalment will be. You should shorten the length only if you are confident that you will be able to afford the monthly repayments. Mortgage arrears can be a big problem for people who have to pay large monthly instalments.

You can also shorten the duration of your fixed mortgage repayment by paying biweekly rather than making monthly instalments. A 30 year fixed loan will have less than 30 instalments if paid biweekly. Because biweekly repayment method is a special kind of mortgage repayment system, it is treated differently by mortgage lenders. Lenders usually charge for biweekly loans. The loan also attracts registration fees that differ from one lender to the other. You must also pay debt charges every time you pay an instalment. All these fees are never as significant as to make the loan more expensive than the monthly repayment system. However, you must ensure that you are fully prepared for the charges. The biweekly loan, like monthly instalments, are usually paid for from the savings or checking accounts of the borrower.

Rates of fixed rate mortgages are determined before the loan is issued and remain constant until completion of repayment. This implies that the rates have are carefully assessed before being applied. Inflation and drastic changes in house prices can cause lenders significant financial losses if the rates are to not adequate. Mortgage lenders get their money from the savings of their account holders and from their own investments. They may also borrow the money from other financial institutions. The rate of borrowing from other banks is called the swap rate. All these determine the rate of the fixed mortgage. The Bank of England also plays a significant role in mortgage rate determination. The Bank of England strongly considers runaway house prices when determining mortgage rates. If low rates are causing a fall in house prices, then the bank will ask lenders to increase the rate. 

Mortgage Solicitors and Arrangement Fees


Conveyancing is the process by which a person is able to buy or sell a property. In the UK, property conveyancing is mandatory and anyone who wants a property of their needs to do conveyancing. Conveyancing is done by a solicitor or a conveyancing solicitor. These are people who make sure that this legal process goes smoothly. Moreover, property buying has a few different options. Firstly, it can be bought in cash if you have the money. Also, it can be bought by taking loans. And most importantly, it can be bought by mortgage. The following article will discuss mortgage solicitors and what it costs to get a mortgage and how they help you buy a property in the UK against a mortgage.

Mortgage – the basics

Mortgage is buying a property against a loan and conveyancing it to the creditor. Buying a property on mortgage is not a risky thing but it can be if you are not sure of being able to pay the credit amount in due time. Therefore, before deciding to buy a property on mortgage it is best to be sure about it.

Also, not all properties might be available at good prices at all times. Therefore, if you suddenly find a property to your liking that is available at a good price then buying it straightaway is the correct decision. However, money of that huge amount might not be available to you in cash, thus, buying the property with mortgage is the only option left.

Mortgage fees

Many properties have one sometimes at least two mortgage fees. Of the two fee types, one is known as the arrangement fee. This arrangement fee is the charge or cost of the one who will be lending in the money. Usually, mortgages for home, thus, for residential conveyancing, it is given by financial institutions. In the past, this cost was usually administration cost of the mortgager but now it is also known as the arrangement fee.

It is the most important part of the whole process of getting a mortgaged property, thus, a mortgage. Your conveyancing solicitor will take care of this and it is also important to know that the interest rate of the mortgage will also be fixed during this process.

Mortgage conveyancing solicitors will take care of the whole process for you. However, many solicitors are too much commercial and do not give proper advice to the clients. Some conveyancing solicitor will advise you to check on the interest rates before buying. There are some lenders who hide high fees behind low interest rates. Therefore, it is best to check if the fee is actually justified or not. If you have doubts about it then ask your solicitor to help you understand it.

Usually, there are two type of combinations when you are getting a mortgage from a lender for residential conveyancing. One is high fee and low interest rate while the other is low fee and high interest rate deal. From these two, the higher fee is a better choice when you are taking a bigger loan. This is because a bigger loan takes a longer time to pay back. Thus, taking a bigger loan with a higher interest rate is not actually feasible. And it will be a foolish thing to do in fact. Therefore, ask your conveyancer what to take and also do your own personal research regarding the matter.

Usually, big money lenders or the person or institution lending you the money as the mortgage for your property conveyancing, will give you an option. That option being that you can pay the agreement fee up front. You can add that fee to the mortgage too – that option will also be available. However, it will not be a good thing to do as you will have to pay interest on that amount of money also. On the other hand, risk for paying it up front is that, that money is non-refundable. Therefore, if the buying process is hampered and you do not buy anything in the end – then that money will be lost forever.

The conveyancing solicitor will help you understand these complex situations that may arise when you buy a property with the help of mortgages. The arrangement fee is ranged from a hundred to more than two thousand pounds. Therefore, the best way is to go to a conveyancing solicitor who will give you proper guidance. Mortgage solicitors like Nigel Broadhead Mynard Conveyancing Solicitors do residential conveyancing in and around the UK.

Important information about the Mortgage deeds


Mortgages are loans for buying homes. Like any other loan, a mortgage must be secured against another asset. The asset that is used to secure mortgages can be the property that the mortgage is used to buy. Protection is not arbitrary. There must be documents that show that a mortgage lender and borrower have agreed to use a property to protect a mortgage. This document is referred to as mortgage deed. The other document that can also be used to protect mortgage is the trust deed. These documents serve the same purpose as far as mortgage protection is concerned. The difference between them is the ease with which a lender can foreclose a property in case of default in mortgage repayment.

Contents of Mortgage deeds

Mortgage deeds are a document with a collection of agreements from both the lender and the borrower. It includes conditions of the mortgage, repayment schedule, length of the mortgage, mortgage rates, type of mortgage and security for the mortgage. As a borrower, you have to understand the terms and conditions thoroughly and may ask professional help to analyse it. The terms are legally binding and can be enforced by law if you fail to pay the mortgage during the repayment period.

Importance of Mortgage deeds

Borrowers are expected to repay their mortgages over a given duration of time. This duration of time varies with the size of the mortgage and the amount of monthly or biweekly instalment that a borrower must make. Mortgage repayment can extend for as long as 30 years. The long duration of mortgage repayment allows the buy to repay comfortably without going through a tough financial crisis.

Lenders usually ensure that a buyer is fit for a mortgage before giving out the money. Every financial information about a purchaser is thoroughly analysed. A buyer must have a good credit rating and a steady income to qualify for a mortgage. Credit ratings are obtained from the buyer’s credit company. The buyer's income can be verified by analysing his employment record and salary or, for unemployed buyers, their tax returns as edited by a certified public account. These pieces of information show the financial stability of a buyer and his ability to repay his debts.

The presence of a property is not sufficient to guarantee that a buyer will repay his dues or that a lender will fully recover his money. Even verification of financial stability and credit ratings are not enough to guarantee lenders that their money will be repaid in time. Mortgage deed and trust deeds are the only ways lenders can rest assured that they will recover their money.

Failure to abide by Mortgage deeds

Most mortgage deeds allow lenders to foreclose a property after 60 days of default in outstanding payment. Foreclosure involves selling off a property and using the money to pay off debts owed by a buyer. Foreclosure is usually the last resort for most lenders. Foreclosure comes at a time when buyers are not prepaid to seek additional means of accommodation. The buyers do not have the money to spend on rent or purchase of another property. Rents are usually even more expensive than mortgage. A borrower whose home is foreclosed can either move in with a relative or be rendered homeless.

There are many other ways that a borrower and his lender may come to an agreement without having to foreclose. A borrower may negotiate to agree on a new method of repayment that suits them both. This should be done way before foreclosure is considered. Foreclosure must also be undertaken in a way that a buyer is fully satisfied with. The decision to foreclose cannot appear to a lender from out of the blues. 

Examples of hidden cost of buying a house


Buying a house can be very expensive. The most obvious cost of buying a house is the actual price of the property. Most buyers get into conveyance with only this cost in mind. They fail to realize that there is one or more other hidden cost of buying a house. The result is that the buyer is confronted with bills he did not expect. The worst thing is that these additional expenses have to be paid from the buyers own pockets and not with loans or mortgages. It is important for any buyer to get into conveyance with sufficient knowledge of the expenses he will have to cater for.

Solicitors Fees

The very first cost of conveyance that you will be confronted with is the solicitor’s fees. Solicitors’ fees are payment made for the services of solicitors. Solicitors are experts in real estate transaction. They help buyers and sellers in exchanging properties. Property transaction cannot sail through smoothly without the input of solicitors. They help buyers and sellers draw contracts, perform property investigations and file relevant documents. They usually charge about 800.

Disbursement Fees

Search and Surveys Fees

The other cost of conveyance is the cost of property survey and valuation. Property survey help elucidate the cost of a property. The survey takes into consideration size, location and age of the property. A buyer cannot get a mortgage without having a valid property survey report. There are many types of survey reports. Each of these serve a different purpose and cost different amount of money. The most important one is the Standard Property Survey. It gives a brief account of the condition of the property and the possible market value of the property. The law requires that a buyer conducts at least the Standard Property Survey.

Land Registry Fees

As a new owner of the property, you need to change the legal ownership of the property at the Land Registry. Only after completing the process you will own the title dee of the property. You will need to fill up forms and pay the required land registry fees to make the transfer of deeds complete.

Stamp Duty Tax

Stamp duty land tax is the other hidden cost of conveyance. Stamp duty is like an income tax. Strangely, it is charged on the buyer rather than the seller who is indeed the recipient of the price of the house. Stamp duty is charged on any newly built residential home that is worth more than £125,000 or any other property that is at least £40,000. That is, if you are buying your first home, you will be charged a tax when your home is at least £125,000. If the home you are buying is the second or subsequent home, or when it is a buy to let property, taxation begins at house prices of £40,000. Stamp duty taxes, like income taxes, are grouped into various bands with each band having a different rate. The higher the price of your house, the more stamp duty you will have to pay.

Other Fees

You should also expect to pay mortgage arrangement fees. These are the cost of processing a mortgage. Mortgage arrangement fees vary from one lender to the other. Some of these lenders have refundable arrangement fees while others do not. The arrangement fees include mortgage application fees, mortgage broker fees and mortgage transfer fees. Other conveyance fees include estate agent fees and life insurance processing fees.

How mortgage arrears are handled?


The mortgage is a critical financial incentive for buying properties. However, it becomes a problem when the buyer cannot pay back. The mortgage is a loan and like all loans must be repaid. The buyer usually repays the mortgage in installments after buying a property. Each payment reduces the amount of the mortgage by a predetermined proportion. The security for the mortgage is the property that it is used to buy. A lender may resale the property if the borrower defaults in making payments. Once a buyer fully repays the mortgage and interest on the mortgage, he becomes a full owner of property.

Mortgages are usually repaid within a given timeframe. The time it takes to repay mostly depends on the size of the mortgage. Larger mortgages are generally repaid over longer periods of time. A borrower may find himself lagging behind in payment at any time during mortgage the repayment period.

Mortgage arrears are as distasteful to the lender as it is to the borrower. Contrary to many opinions, it is never a lender’s desire to repossess buyer’s property. The process of repossession of properties can be complicated and costly. Lenders usually prefer giving their clients time and incentive to repay rather than take ownership of a property at the very first chance of opportunity. This attribute of lenders could be because of their inherent humanity or obedience to the rules of Financial Conduct Authority (FCA). FCA requires all mortgage lenders to keep their clients informed about the condition of their contract before, during and after the mortgage is loaned out. The lender must explain clearly the actions they will take if the borrower defaults in his loan repayment.

Lenders are never quick to repossess a property with mortgage arrears. They usually give borrowers opportunity to catch up with payment. The first thing that most lenders do is to contact the borrower. This is in keeping with the rules and regulations of the Financial Conduct Authority. The lender may then give the borrower more time to repay a loan, or offer him a repayment plan that is suitable to his current financial situation.

Lender’s course of action is usually guided by the borrower’s conduct during the loan repayment period. A borrower who has been diligently repaying his dues can enjoy more lenient measures such as adjustment of repayment plans. Lenders tend to be stricter to borrowers whose repayment has been odd from the day they were given a loan. These lenders can be taken to court and served repossession orders. Nevertheless, there is always a possibility of the repossession order getting suspended. This just shows how much the financial market is lenient to house buyers.

It is important for home buyers to plan how to avoid the inconveniences of mortgage arrears before applying for the mortgage. The borrower should only apply for something that he can repay. He should ask for an extension of the repayment period if he has to apply for bigger loans. Loans spread over a longer period usually, have smaller instalments.

Conveyance: Remortgage


What is Remortgage

Basically the term remortgage is another extension of the idea of mortgage. Mortgage, you already know, is about reconsidering the ownership of a property of your own for a while and borrow a significant amount through this process during your needs. Mortgage is prevalent here in UK and people take in to account remortgaging whenever find themselves in need of money. Mortgage allows one to instant receive cash and get the job done by mortgaging the property to someone who needs that during the time and thus both are left with benefits in return. Remortgage takes place when a person who already is in a deal of mortgaging property with someone else, feels insecure regarding the amount of interest and also about being able to hold the mortgage in due time. He then remortgages the deal with one another and receives a remortgage deal where the risk is significantly lower than the previous and leaves the both in a win-win situation.

Why do I Remortgage

If you know about 'hedging', then this idea of remortgaging is just another reflection of the same. Remortgage reduces your risk or uncertainty associated with the mortgage in hand at present and secures you money with another deal with a lower possibility of risk. This risk is basically measured by the rate of interest implying on the deals of mortgages. If you happen to have a mortgage that leaves you with 0.5% of interest, then you remortgage the same with an offer where the rate of interest lies above 0.5%, this pretty much sums up the complex idea of remortgage to any amateur dealing in remortgage.

Whenever, the above is your situation, it is recommended to go for remortgage.

How to Remortgage Property in UK

  • You can remortgage your property at the time when you find a deal available to you where the interest rest is higher than the rate you have your property in mortgage at present. This happens, when you are in need of cash and don’t find a seemingly possible way to arrange the same within the limited time.
  • Remortgage is quite simple to do if you possess little knowledge regarding the money market in the country and also about the rate of interest available with the deals of remortgage.
  • The above requirement is often found to be difficult for the amateurs to fulfill and therefore, it is recommended to look for experts to rely on and get the job done so easy. Experts in remortgage are the few conveyancer, solicitor etc. who make your dealings happen within a short time span and leaves with your chunk of profit.
  • Remortgaging requires you to analyze the situation in the money market at present and reconsider your holding the property in hand on mortgage. If you successfully manage to analyze it, you should then quote your price and the rate of interest to the conveyancer or solicitor. It then becomes their responsibility to get you the quotes that fall under your requirements and thus makes an offer, become a deal.
  • Remember, whenever you remortgage your property, it’s a done deal; therefore make a remortgage where you pass on the fluctuating rate associated with your mortgage at present and take responsibility of the one with a fixed rate of interest instead. This reduces your risk associated with the mortgage and relieves you with a certain amount of profit in hand.
  • In case of fixed rate of interest, the deals can be 2 year, 3 year or 5 year remortgage deals. In such cases, pay attention to the features these deals allow you to benefit from.

Best Fixed Mortgage Rates for 2017


Buying property is rarely ends with finding the right property in the United Kingdom, many others things need to be taken care of. It is not necessary that you will have the finances every time. When you are short of adequate finances, you may need the mortgages to purchase the house. However, you need to ensure that you get the best fixed mortgage rates with the cheap interest. However, before you decide, it is important that you get the best mortgage.

Two different mortgages are available in the United Kingdom. The first is the floating mortgage and the second is fixed mortgage. The fundamental difference between the two mortgages is the interest rate. The interest rate for the floating mortgage varies as per the time whereas the interest rate for the fixed mortgage is fixed for the entire life of the mortgage. The buyers often prefer the fixed rate mortgage for various reasons. Here are the best fixed mortgages rates for fixed mortgage in 2017.

Fixed Rate Mortgage

The fixed rate mortgage has fixed interest rate for the entire lifetime of the mortgage. The buyer would be able to know the time frame to complete the mortgage and should have accordingly pre-set instalment as well. This helps the buyer to estimate the finances during the mortgage period. However, in order to get a better idea, it is important to know the best mortgage rates of different lenders with different features. Here are the details of the mortgage.

Two Year Fixed Rate Mortgage

The different lenders of the mortgage give minimum interest rate for the fixed rate mortgage for two years. However, this may cause a high amount of fee for the low-interest rate. The lowest two-year mortgage rate around is from Yorkshire Building Society in 2017. It is around 0.99%. HSBC provides the rate around 1.14%. The Chelsea Building Society, First Direct, Nottingham Building Society and others provide interest between 1.15% to 1.50%. The Loughborough Building Society, Monmouthshire Building Society, Accord Mortgages offer a mortgage with a higher interest rate between 1.50% to 4.00% but with a lesser fee mostly under £500.

Five Year Fixed Rate Mortgage

For the longer time of the mortgage repayment, the five years fixed rate mortgage is preferred. The best part of the mortgage is that the interest rate is very much reasonable mostly between 1% to 2% with varying fees of over £500. For lesser fees, the interest rates shoot up to 3%-4%. Atom Bank, Yorkshire Building Society, Post Office Money, Virgin Money, HSBC, First Direct are few of the very common lenders for the mortgages.

Ten Year Fixed Rate Mortgage

The repayment period can be even higher for ten years. The interest rate can be between 2%-5% along with fees. The fees can be under £500 where the interest rate touches 5%. However, the buyer can also go for higher fees and lesser interest rate. Nationwide, Coventry Building Society, First Direct, TSB, Barclays are few of the very popular mortgage lenders.

The best fixed mortgage rates are subject to change depending on the lender and should be verified while applying.