Using the latest sourcing technology we compare all the mortgages deals available across the market from across the market to help you find the best most appropriate deal at the cheapest rate, our comparison tool includes over 20,000 products from across the whole market of UK lenders.
Key Mortgage Comparison Questions
How does our mortgage comparison tool work?
Our mortgage comparison and sourcing tool searches through more than 20,000 products offered by over 90 lenders. It shortlists the best deals based on the information provided by you, we also have a number of exclusive deals that are only available to us that you’ll not find even direct from lender.
Mortgage overpayments are the additional amounts you pay over the monthly payment amount that you have agreed with the lender. You can discuss any overpayment options with your broker or advisor, overpayment generally help you pay down the mortgage quicker and can save you interest payments.
Details of overpayments are usually quoted in the ESIS document also called Mortgage Illustration. Some mortgages have an option to overpay 10% of the balance every year in addition to the agreed monthly payment without incurring Early Repayment Charges (ERC), speak to your advisor to discuss options.
What is the benefit of mortgage overpayments?
With overpayments, you can pay an extra amount above the agreed monthly repayment amount agreed with the lender, this will allow you in most circumstances to finish paying the mortgage off earlier.
How much can I overpay on my mortgage amount?
It really depends on the product and the lender, generally residential repayment mortgages have a 10% overpayment facility each year without penalty. However, every product differs, so please speak to your advisor to discuss your options and they will find the most appropriate deal.
How is an overpayment calculator helpful?
The overpayment calculator allows you to calculate how much you can pay without penalty and also the amount of interest you’ll save you on the amount you have borrowed.
The stamp duty calculator lets you calculate what you will have to pay on property bought in the UK in 2021/2022. The rate of Stamp Duty Land Tax(SDLT), returned to normal in 2021 following a temporary holiday at the start of the pandemic.
Key Questions around Stamp Duty Land Tax
Who has to pay the stamp duty?
The buyer either the individual(s) or the legal entity ie a Limited Company purchasing the property has to pay the stamp duty.
How much stamp duty do I have to pay?
The amount of SDLT that you will pay depends on a number of factors such as whether you are a first time buyer, whether it’s a second property and also the value of the purchase.
A poor credit profile would generally reduce your chances of getting a mortgage from mainstream lenders, there are however a number of lenders who look past certain “blips” on your profile or disregard some types of late or missed payments and can overlook CCJ’s or defaults under certain circumstance. Call us and we can discuss your options.
As part of the application, the lender will likely run a background credit check and review your credit score in order to build a picture of how you manage your credit commitments. Sometimes we miss payments because we might forget or other times it might be due to circumstances beyond our control.
Can I borrow even with a bad credit score?
The good news is that yes you can, it does however depend on your circumstances and how they fit the lenders criteria. Some lenders specialise with “adverse credit” . We work with a number of these specialist lenders and can find you a solution. Unlike most advice firms we don’t charge a fee for specialist or adverse credit cases.
How does my credit score or credit profile affect my chances of getting a mortgage?
It depends on a number of factors which could be the overall credit score, how you have managed your credit commitments such as credit card payments, utility bill payments any personal loans or car finance,
How can I get a mortgage with a low credit score?
Speak to your Morfinity advisor to assess your chances of getting a mortgage, we have a number of lenders who specialise in providing finance to clients who may have low credit scores or a history of late or missed payments
How can I improve my credit score?
The first step would be to check your credit score or profile, make sure any arrears are paid and ensure that any judgments against you have been satisfied or dealt with. Generally, clients find that having direct debits or standing orders set up reduces the chances of missing payments, which could help improve your credit score.
What is a good credit score?
A good credit score would typically reflect a history of timely paid bills and credit commitments, a manageable level of personal debts, and would reflect an overall well managed credit profile.
What affects your credit score?
The key factors that would likely affect your credit score are.
How can I check my credit score?
You can go direct to Experian, Equifax or Transunion, speak to one of our advisors for more information and how to get a free credit file.
Is there a way to improve my credit score?
Yes, you can! Key point to remember is that everyone can improve their credit profile, always remember to pay your household bills and any credit commitments that you have on time such as your telephone bill, credit card payments and any persona loans that you may have, direct debits or standing orders ensure that payments go on time, especially when you are away on holiday.
The UK property market and specifically property prices remain buoyant, annual growth recently hit 14.3% (March 2022) according to the Nationwide house price survey with the price-to-earnings ratio also reaching an all-time high. The average house prices in the UK currently stands at just over £265,000.
Demand for properties remains high and has been driving prices higher since the start of the pandemic. Beyond demand the UK is facing a housing supply shortage particularly for affordable and social housing, where demand is higher than available supply.
Which area/city currently has the most expensive properties?
London tops the list of being the most expensive city for buying a house, however house price growth has been sharper in other regions with Birmingham, Manchester and Leeds seeing sharp house price increases over the last couple of years.
Over longer periods house prices generally tend to increase, so making that decision to join the property ladder as soon as possible can be one the best decisions you ever make.
How have the house prices been affected after coronavirus?
Since most people lost their jobs and the economy suffered a lot, the government of the UK introduced the stamp duty holiday for relief. It allows people to mortgage homes at low-interest rates and easy instalments without any worries.
What are mortgage interest rates?
- Mortgage interest rates determine the amount you’ll pay for your mortgage every month. Generally higher interest rates drive higher monthly payments, be sure to check for any exclusive products or special deals that we may have.
Does the base rate affect the mortgage amount to be borrowed?
- The Bank of England Base rate, is set by the Monetary Policy Committee (MPC). The MPC is a committee made up of individuals appointed by the Bank of England who are tasked to manage the UK’s monetary policy. The Base rate is a key tool used by the MPC to control inflation. It is reviewed monthly and any changes are quickly filtered down to lenders across the UK. Any increases in the base rate usually drive higher mortgage rates and reductions generally lead to lower mortgage rates.
- How to find the best mortgage deal or rate?
If you are looking to borrow money for mortgaging your dream house, it is always advisable to get in touch with expert and qualified mortgage advisors like Morfinity, with our state of the art sourcing systems we’ll help you find the best and most affordable deals.
The Bank Rate is the single most important interest rate in the UK. In the news, it’s commonly referred to as the ‘Bank of England base rate’.
It is reviewed monthly and any changes are quickly filtered down to lenders across the UK. Any increases in the base rate usually drives higher mortgage rates and reductions generally lead to lower mortgage rates.
What is the current base rate of the Bank of England?
The current official Bank of England base rate stands at 1%, it rose from 0.75% to 1% on 5th May 2022.
How is the base rate set by the Bank of England?
The Bank of England Base rate, is set by the Monetary Policy Committee (MPC). The MPC is a committee made up of individuals appointed by the Bank of England who are tasked to manage the UK’s monetary policy.
What is a negative base rate?
A negative base rate is when the interest rate drops below 0%, A negative base rate has not been set in the UK yet, but has been set in the EU, when rates are below 0 the lender, c
Could the base rate go up in the coming years?
The base rate can increase or decrease depending on the decision taken by the MPC. Now may be a good to time to review your current mortgage deal or carefully consider how long you would like to fix your rate when purchasing a new property.
Money management advice suggests ways and practical tips to save money when looking to purchase a property. It is helpful, especially when looking to save money on your monthly repayments or even your initial deposit.
Key Questions around Money Management
How can you save money getting a mortgage?
The best way is to speak with and discuss your options with your Morfinity mortgage advisor, who will help you secure the most suitable deal according your circumstances and requirements.
How will you know how much you can save through re-mortgaging?
A remortgage calculator allows you estimate the monthly payment for your new deal.
Why is saving money important?
Smart Money Management is really important, especially prior to purchasing a house or remortgaging, it will directly impact your credit profile and if you get it right it’ll help you secure the best deal from mainstream lenders.
Any other way you could save money on the mortgage?
Increasing your deposit when purchasing or overpayments when permitted in line with your mortgage deal will help you pay down your mortgage sooner and save money by reducing the amount of interest you pay. By increasing your equity and obtaining a lower Loan to Value (LTV) mortgage you can sure to achieve lower interest mortgage interest rates.
There are a number of schemes set out by the UK Government that can be used to help you buy your home.
Is there a way to find the best government scheme for yourself?
Our government homeownership tools help you find a scheme that best suits your needs.
What is Help to Buy equity loan?
Through the Help to Buy Equity Loan, the applicant(s) need only a minimum of a 5% deposit of the value of the purchase price. Although the you’ll have full ownership the Government will have an equity share of up to 20% (up to 40% in London) until you repay the equity loan. The main aim of the Help to Buy Scheme is that it enable you to purchase a new build property with a small deposit. Overall When using this scheme you must contribute 80% of the price, for example, with a minimum 5% deposit and up to 75% mortgage. In London, homebuyers must contribute at least 60% of the price.
The other schemes include:
Help to Buy: ISA Scheme – The Help to Buy: ISA is closed for new applications.
Shared ownership – If you can’t get a mortgage to buy a property outright, a shared ownership scheme could enable you to buy a 25-75% share in partnership with a social landlord like a housing association. You would then pay ‘rent’ on the share that you do not own to the landlord.
Right to Buy Scheme – Assists people who are renting their home from a Local Authority (or the Local Authority’s nominated housing provider e.g. Housing Association) to buy the property at a discounted price. The discount generally depends on the length of tenancy with the Council or housing association, in some cases buyers may not need a personal deposit and the lender can fund the full purchase amount post discount.
Forces Help to Buy – The UK Government Ministry of Defense “Forces Help to Buy scheme”, allows UK armed forced personnel to borrow up to £25,000 interest free (repaid over 10 years) to use as a deposit when buying a property to be used as their main home.
Get an Agreement in Principle - What is an Agreement in principle (AIP)?
Also sometimes referred to as a Decision in Principle, DIP or MIP. Is an agreement in principle to lend based on an assessment of your personal circumstances and the joint applicant (if you are applying together). It does not commit you to taking out a mortgage with a lender but by applying for an AIP you will know how much you could potentially borrow subject to a full application.
An AIP is usually more accurate than an online mortgage calculator. But it’s not a guarantee that you’ll be able to get a mortgage, so whether you’re buying a new house or looking to remortgage, we can help you secure an Agreement in principle today.
When your application goes to the lender, the information you provide will allow the Lender to check your credit profile. This will help them work out if they can give you a mortgage and if they’re happy to lend you the requested amount.
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