The purchase of a property is usually facilitated through the raising of a mortgage on the property. In order for an individual to purchase a property a lender will advance the monies, after completing due diligence on the property and the borrower and take security over the property. The borrower’s commitment is to pay the monthly mortgage payment as and when it falls due. Failure to do so may mean that the lender exercises their rights over the property.
This type of mortgage is used to purchase a main residence, i.e. the property you will live in.
The role of the mortgage adviser is to ensure that the client receives
the mortgage that suits their individual circumstances. Furthermore a mortgage adviser will have access to a range of mortgages from a number of lenders, thus saving a client time by approaching all these lenders directly.
To ensure a trouble free transaction an adviser will usually liaise with all parties involved in the transaction including client, solicitor and estate agent.
This is the process of moving from one lender to another. This is usually done to receive the better rate on the market.
Buy to Let Mortgage
As the name suggests this type of mortgage is used to purchase an investment property. As a general rule rates tend to be higher when compared to a residential mortgage and larger deposits are required.
Please be aware that Buy to Let Mortgages are not regulated by the Financial Conduct Authority.