Mortgage Services Ulster Property Sales estate agents based in Northern Ireland

BORROWING TO BUY YOUR HOME

Our advisers have access to a wide range of lenders, special offers, mortgage and remortgage products, so they can discuss the best options for your individual circumstances.

Your home may be repossessed if you do not keep up repayments on your mortgage. UPS Financial Services Limited undertakes credit broking and is not a lender.

Mortgage

When you buy your home, you will probably need to take out a loan to pay for it. A mortgage is a loan that is secured against your home. This means that if you do not keep up with the repayments, your mortgage provider can sell your house to recover the money you owe. A mortgage is usually offered at a much lower interest rate than you would find for any other type of loan.
Remortgage

If you change your mortgage to a new lender by remortgaging, you may find you benefit from a better mortgage rate than the one you are currently paying. Some lenders also offer to pay the legal costs and valuation fees associated with remortgaging.

The process for remortgaging your home can take around eight to twelve weeks, as the new lender will need to make similar checks to those made when you first bought your home.

You may have to pay an early repayment charge to your existing lender if you remortgage. Your current lender may also charge you a 'deed discharge fee' when you leave your current mortgage. These are all areas your adviser will be able to explain in more detail and help you with.
Lifetime Mortgages

A lifetime mortgage is a popular type of equity release. It is a long-term loan which is secured on your property. The amount you can borrow depends on your age and the value of your property. You will not have to make any repayments before the end of the plan. Interest will be accrued and added to the loan each year. The loan and the interest are repaid in full, usually from the sale of your property, upon death. This is only available to people aged 55 and over.
Shared Ownership

If you have spotted your dream home but then realise it's out of your reach due to affordability or lack of deposit, it still may be possible through shared ownership.

There are currently two shared ownership schemes available in Northern Ireland. The most instantly recognisable and longest established is Co-Ownership, who have been helping people get onto the housing ladder since 1978. Co- Ownership is a facility where you buy a share of your home (between 50% - 90% of the home's value) and pay rent on the remaining share. For your share you'll need to have a mortgage, which our adviser will arrange, along with helping with the Co-Ownership process.

The second shared ownership scheme available is called FairShare. It works in a similar way to Co-Ownership, whereby you purchase between 50% - 90% of your home's value and pay rent on the remaining share. However it is only available on new builds and is restricted to 3 major housing associations - Apex, Clanmil and Choice. There are currently only 3 major UK mortgage lenders providing mortgages for the FairShare scheme and again our advisers will help you with all aspects of this.

This may only be the start of your journey. Further down the line you may be in a position to buy an increased share or indeed all of the Co-Ownership or FairShare elements. This process is known as staircasing and when you are ready to make this step our advisers will always be at hand.

How much can I borrow?

This depends on:
- Your income
- All outgoings (an in-depth analysis will be conducted at review)
- Your credit history
- Whether you are able or prepared to make changes to your lifestyle that may reduce your outgoings
- How much deposit you have.
You will need to find out how much you can borrow before making an offer on a property. Some lenders will work this out before you find a property - this is called an approval or decision in principle. This will help you know the maximum offer you can make on a property and will also speed up the mortgage process. Lenders usually base their calculations on your guaranteed earnings such as basic pay, but some will consider part or all of any regular overtime or bonuses. They will want to see proof of your income.
How long will my mortgage last?

This is known as the mortgage term. Mortgages usually have a term of between five and 40 years. A mortgage should normally be for the shortest term you can afford as this keeps the overall cost down. A longer than necessary term means you will pay more interest.
Selecting your mortgage

Your adviser will go through your needs and preferences and use these to filter out any mortgage products that do not meet your requirements. This will reduce the amount of products that will be considered for you.
Consolidating debts
This is not suitable for everyone and you will need to carefully consider this with your adviser. If you have existing debts, it may be possible for you to add these to your mortgage rather than continue with your existing repayment arrangements. When you add loans to your mortgage, it is important to understand the risks:
- Adding a short-term debt means you will repay them over a longer term. Unsecured loans are generally paid back over a shorter term than mortgage loans. While the interest rate on your mortgage may be lower than you pay on your loans, by adding them to your mortgage you are likely to pay more over time. It may not be appropriate to consolidate small or short-term debts.
- Your existing debts might not be secured on your property. By adding them to your mortgage they become secured on your property.