Frequently Asked Questions
1. How much can I borrow?
Available Mortgages are able to offer mortgages from £5,000 up to £3,000,000. The actual amount available to you will depend upon your personal circumstances but we are able to arrange re-mortgages up to 90% of the current value of your home and as high as 95% if you are purchasing a new home.
2. How long does it take to complete a re-mortgage?
For a straight forward re-mortgage it can take as little as 10 – 14 days to complete. This timescale may vary if there are cmplexities or non-typical situations but generally speaking it should be no more than 28 days. Whatever happens we will work very hard to ensure that your mortgage is achieved within your desired timescale.
3. What will my monthly payments be?
This can depend on various factors such as whether you are taking an interest only or capital repayment mortgage, how long you want the mortgage over (the term), what percentage of the value of your property you wish to borrow and whether you have a good credit record. One of the first things we will do at Available Mortgages is talk to you about what you need and what you are looking to achieve with a mortgage. We are happy to give you as many quotes over as many different terms as you wish and we can do this in your first call with our experienced mortgage adviser.
4. What is the difference between an interest only mortgage and a capital repayment mortgage?
A mortgage is a loan that is made up of the original loan sum (capital) and the interest rate charged by the lender on that loan sum. If you choose a capital repayment mortgage then each monthly payment you make during the course of the mortgage will be made up partly of interest and partly of capital repayment. This monthly payment is calculated so that by the time the mortgage ends you will have paid back the whole amount of the loan. If you choose an interest only mortgage then each month you will pay only the interest charged on the outstanding loan balance. With this method, the original loan or capital is not paid off by your monthly payments so at the end of the term (length of the mortgage), you will still owe the whole amount of the original loan. Whilst it is not generally a condition of the mortgage, most people who opt for an interest only mortgage look to have some form of investment running alongside the mortgage that will mature at around the same time as the mortgage ends and pay out enough to clear the mortgage balance. Options such as a pension, ISA or other investment could be suitable for this purpose.
5. What is going to happen to interest rates?
Unfortunately , no one has a crystal ball to predict exactly what will happen to interest rates over the coming months and years. However, rates are currently at their lowest level ever, so when they do move, chances are they are likely to rise. Mortgages are linked to either the bank of England base rate or something calle LIBOR (less commonly used but meaning the London inter bank offer rate – the rate at which banks lend each other money). A more cautious borrower would perhaps look at opting for a fixed rate mortgage where the interest rate and monthly mortgage payment remain the same over a set number of years. A more adventurous borrower may be attracted to taking advantage of the currently low rates and hedge their bets on interest rates remaining low over the longer term. Whatever type of borrower you are, the team at Available Mortgages can give you all the information you need to help you decide which is the best mortgage type for you.
6. How soon before the end of my fixed/variable rate period should I start looking for a new mortgage deal?
With interest rates at their lowest ever, there is no time like the present to start looking for a new mortgage deal. Re-mortgages can be completed as quickly as 10 days and offers typically stay valid for up to 6 months. We suggest however that to be on the safe side, you contact us at least 30 days before you need to complete. If your fixed or discounted rate period has already expired then get in contact immediately and see what we have to offer. If you are approved and decide to proceed then we will process your mortgage as fast as we can.
7. Why should I trust your company with arranging my mortgage?
Apart from our genuine desire to help people get the mortgage they want and need and our wealth of experience in doing this, Available Mortgages is directly authorised by the Financial Services Authority (FSA). FSA Number 300757 refers. The FSA is the government body responsible for regulating the residential mortgage industry. To retain our regulated status, we as a business must abide by strict regulations and guidelines laid down by the FSA. We are closely monitored as part of this regulated regime which is designed to make sure that we are doing our job properly and that as a customer you are always treated fairly.
8. Can I use the re-mortgage money for any purpose?
Yes you can. Our experience shows that the most common uses are listed below, but do not worry if your reason for needing funds does not appear, you can use the money for anything you want to.
Paying of expensive loans or credit cards and reducing your monthly outgoings
Improving your existing home e.g. extension or conservatory
Buying a new car
Paying for a special event e.g. a wedding
Paying school fees
Purchasing another property
Investing in a new business venture