Eclipse Financial Solutions

The first step towards owning a home, for most people, begins with a mortgage. As it is one of the biggest financial transactions you are likely to make in your lifetime it’s important to get good advice.

We appreciate that buying a house is a stressful business. You have enough to worry about without having to try and fathom out the ins and outs of mortgage options and how they will impact on you, not only now but for the years down the line that you will be paying it back.

There are numerous factors involved when looking to set up a mortgage and choosing the right option depends entirely on your personal circumstances.  At the end of the day a mortgage is a loan, complete with regular repayments and interest, and if you fail to keep up you could end up losing your property.

It may sound like stating the obvious, but many mortgage problems begin with a misunderstanding of what exactly people are signing up for. That said, find a mortgage to fit your needs, that realistically reflects your circumstances, and you can look forward to more simple stresses – like choosing paint colours and arguing about curtains!

WARNING: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Finding a mortgage that is going to be as sweet as your home

Because of the commitment involved, it’s important to get it right, which is why Eclipse will advise you on a raft of options, and help you to choose the one that is best for you. We have been providing independent mortgage advice to clients in North Devon and across the country for over 14 years.

We have outlined some of the options, with a simple explanation, below. Give us a call, or pop in to our Barnstaple office see us, and we can arrange to run through them in more detail with you.

A Purchase Mortgage is the normal route you go down when you buy a house or flat for your own residential use. You negotiate a scheme for which the amount you can borrow is dependent on your income, as well as your existing credit and the amount of your deposit. A Purchase mortgage translates into a loan-to value ratio (LTV), where the loan is expressed as a purchase price percentage.  

A First Time Buyer (FTB) Mortgage is an option for you if you are looking to get on the property ladder. Generally,  first time buyers have less capital to put down in the form of a deposit so an FTB mortgage reflects this, but also means interest payments are higher.

A Remortgage can be a good option if you are looking to free up some capital on a property you already own, and is generally taken out with a different mortgage provider allowing you to benefit from a more favourable interest rate.

A Buy To Let (BTL) Mortgage is made for you if you are looking to invest in a second property with the intention of renting it out. While it is similar to a normal mortgage, interest rates and deposit minimums tend to be higher.

A Shared Ownership Mortgage  is suited to you if you are on a low income, and allows you to buy a percentage of a property (with a mortgage) and pay rent on the remaining share. The scheme is generally available through housing associations, but can also be backed by the government or operated privately.

An Adverse Mortgage loan may be less flexible in its terms and also more expensive, but if you have a bad credit rating then it provides a viable option which will allow you to buy a house.

A Let To Buy Mortgage (LTB) is a good option if you are looking to buy but are put off by the prospect of housing chains, or looking to give your retirement income a boost, then a Let To Buy mortgage allows you to rent out your home, with the payments helping to cover the costs of a mortgage on a new house. 

A Self Build Mortgage is suited to you ifyou are building your own home rather than buying one. It is different from a regular mortgage because the lender releases the money in stages.

A Commercial Mortgage is similar to a normal mortgage, but tailored to businesses, so something to consider if you are looking to buy a commercial building or premises.

Repayment Methods

Repayment – You buy your house with a loan negotiated over a specific term, with monthly repayments that include the money borrowed from a lender, as well as interest payments. A Repayment Mortgage provides some simplicity in as much as, so long as the payments are met, you know when the loan will be repaid.

Interest Only – With this type of mortgage you pay the interest on the loan without paying back any of the capital which means the payments are smaller. However, the  loan must still be paid back within a certain term and so provisions need to be made for the pay back .