Aven Mortgages
Specialises in offering professional mortgage advice to our clients that are looking to purchase a property in the UK whether this is for first time buyers, main residence, second home or investment. We work with banks and building societies as well as other alternative lenders in the marketplace that you will not find in the high street.
We will make the process of finding your home loan as simple and straightforward as possible. We will find competitive mortgage and remortgage rates, assisting you in every step of the process, clearly explaining fees, cost and conditions.
Professional Mortgage Advice - FCA Regulated
Our team provides expert advice to clients seeking mortgage solutions, ensuring they make informed decisions
Competitive mortgage rates
We will find competitive mortgage and remortgage rates for our clients, potentially saving them money over the life of their loans
Simplified process
Our goal is to make the mortgage application and approval process as simple and straightforward as possible for our clients. Guidance and support are essential.
Transparent information
We provide clear explanations of fees, cost, and conditions associated with various mortgage options, ensuring out clients to understand the financial aspects of their decisions.
Tailored solutions
Offering personalized solutions based on our clients specific needs and financial situations is crucial for ensuring they get the best possible mortgage for their circumstances.
Types of Residential Mortgages
Fixed-Rate Mortgage
These mortgages offer a fixed interest rate for a specific period, typically two, three, or five years. After the fixed-rate period, the mortgage usually reverts to the lender’s standard variable rate (SVR), which can be higher. Fixed-rate mortgages provide stability in monthly payments, making it easier for borrowers to budget.
Variable-Rate Mortgage
Variable-rate mortgage is a type of home loan that doesn’t have a fixed interest rate, meaning that your monthly repayments may fluctuate over time. Standard Variable Rates (SVRs) follow the lender’s own interet rate, rather than Bank of England’s base rate. In practical terms, if you are on an SVR, your interest rate may be subject to change at the discretion of the lender at any time. Upon the conclusion of your tracker-rate or fixed-rate mortgage deal, you are generally transitioned to the lender’s SVR unless you choose the option to remortgage instead.
Discount Mortgage
Discount mortgages are a type of SVR mortgage with a discount applied to the lender’s SVR for a specific period, typically two to three years. Borrowers need to consider both the discount and the lender’s SVR when comparing mortgage rates.
Tracker Mortgages
A tracker mortgage is a form of variable-rate mortgage where the interest rate tou pay is linked to the Bank of England’s base rate. Opting for a tracker mortgage means that your monthly mortgage payments have the potential to fluctuate up or down on a monthly basis. It is important to ensure that you can still manage your mortgage payments in case they rise.
Interest-Only Mortgage
Interest-only mortgages are available but have specific requirements. With this type of mortgage, borrowers only pay the interest each month and are expected to repay the principal at the end of the term, often through an investment plan.
Help to Buy Mortgage
These government-backed schemes assist first-time buyers in getting on the property ladder with lower deposits and favourable terms. Contact with our advisors for guidance.
REMORTGAGES
Refinancing a mortgage involves obtaining a new mortgage to settle your existing one. You might consider refinancing to reduce your payment period, lower your interest rate, or release equity for other investments. In the UK, refinancing can be done with either the same lender or a different one.
It’s important to factor in the associated costs, which include many of the same fees as your current mortgage, along with potential early repayment charges. Prior to making any refinancing decisions for your UK mortgage, consulting with an expert mortgage advisor is advisable to weigh the pros and cons.
How much can you borrow?
In the UK mortgage system, every borrower’s situation is treated as distinct. Consequently, you may discover that certain lenders are more inclined to provide a larger loan than others. With over 50 mortgage lenders operating in the UK, it’s advisable to explore various options to secure the most competitive rates. There are three primary factors that UK mortgage lenders will weigh up before making you an offer:
Total Household Income
UK mortgage lenders typically use an income multiple to determine your borrowing limit. As a general guideline, you can usually borrow up to 4.5 times your annual household income. However, this multiple may vary depending on the specific lender. Certain professions or borrowers with strong credit histories may be eligible for higher income multiples, allowing them to borrow up to five times their annual income.
Lenders consider your total household income, including not just your salary but also other income sources. However, they also take into account your financial obligations, such as credit card payments, loans, memberships, and daily living expenses when assessing your ability to repay the mortgage.
Property Value
The loan-to-value (LTV) ratio is a crucial factor that determines how much you can borrow. This ratio represents the percentage of the property’s value that you intend to borrow as a mortgage. LTV ratios can vary based on the type of mortgage and the borrower’s circumstances. The size of your deposit influences your LTV ratio. A larger deposit results in a lower LTV ratio, often leading to more favourable mortgage rates.
Lender’s assessment of Affordability
Lenders conduct a thorough evaluation of your financial situation to determine the amount you can comfortably borrow. This evaluation includes a review of your income, expenses, and existing financial commitments. Lenders also take your credit history into account, which plays a significant role in their decision-making process.
Your unique circumstances, including any additional income sources or assets, are considered to ensure that you can manage the mortgage repayments.
SECOND MORTGAGES / SECURE LOANS
Refinancing a mortgage involves obtaining a new mortgage to settle your existing one. You might consider refinancing to reduce your payment period, lower your interest rate, or release equity for other investments. In the UK, refinancing can be done with either the same lender or a different one.
It’s important to factor in the associated costs, which include many of the same fees as your current mortgage, along with potential early repayment charges. Prior to making any refinancing decisions for your UK mortgage, consulting with an expert mortgage advisor is advisable to weigh the pros and cons.
BRIDGE LOANS & DEVELOPMENT LOANS
A Bridge Loan is a temporary financing solution designed to assist in “bridging the gap” between the desire to make a purchase and the availability of funds from the sale of another asset. Bridging loans are frequently employed by individuals seeking to acquire a new residence prior to selling their existing one. Landlords, homeowners, and property investors utilize these loans to facilitate various purposes, including property purchases, real estate development, investment in buy-to-let opportunities, and managing tax payments.
Development Finance refers to loans utilized to cover the expenses associated with residential or commercial development projects. These loans can be applied to acquire land and cover construction costs, making them suitable for various projects, including ground-up new builds, conversions, or refurbishments of existing properties.
PROTECTION
Upon completion of the mortgage, it is imperative to have both buildings and contents insurance. Additionally, for enhanced security, supplementary protection can be incorporated. Our insurance department is available to guide you through various insurance options, ensuring your peace of mind. Our specialists can provide insights into diverse coverage, including insurance for the outstanding mortgage amount, life insurance, income protection, critical illness coverage, health insurance, and more. For personalized assistance, please refer to our specialists at Aven Mortgages