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.
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.
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.
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.
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.