Owner-occupier Mortgages

Most people, when they buy a house, have to borrow some money in the form of a residential, or ‘owner-occupier’ mortgage.
Mortgages are long-term loans typically provided by bank or building societies, which are secured against the property itself.

Generally, the capital sum borrowed and any accrued interest are repaid over a fixed ‘term’ of 25 years, although in recent years the rise of ‘flexible’ and ‘offset’ mortgages has meant that they can often be paid off early, or even slightly late.

Most residential mortgage providers these days will require a deposit of 5%–10% of the total value of the property, although one or two lenders will still offer a 100% loan to value (LTV).

The amount you can borrow will depend not just on the deposit you offer but also your credit history and income (or, if you are applying for a mortgage with a partner, your joint income).

In most cases, lenders will stick to strict ‘income multiples’, for example, 4x main income for a sole applicant or 3x joint income for joint applicants. However, they can be more generous if they are confident you will be able to meet the monthly repayments.

When applying for a residential mortgage, it’s vital to not only get a competitive interest rate but also to find a product that suits your lifestyle and needs. For instance, if your income fluctuates from month to month, or you receive hefty annual bonuses, you may wish to consider a flexible mortgage that will allow over- and under-payments.

However, if you prefer to know exactly what your mortgage payments will be from one month to the next, you may prefer a fixed rate mortgage, as this provides a degree of financial security.

If, on the other hand, you’re confident we are in the early stages of a downward interest rate cycle (as many people are at present), you might opt for a tracker mortgage that will follow the Bank of England base rate and therefore reduce your monthly repayments.

The problem is that there are over 100 mortgage providers offering thousands of products, which can make finding the right mortgage extremely difficult. Because of this, it’s often a good idea to use a mortgage broker that can identify the most suitable product and rate.

As a fully independent broker, Cobalt Capital can access exclusive broker-only deals as well as loans available on the high street, which amounts to even greater choice.

Because many of our clients are busy professionals, we are happy to co-ordinate the entire mortgage process on their behalf, maintaining 100% control over the entire application procedure.

In addition, our stated policy of transparency means our clients are made aware of any introduction fees we may be paid for introducing them to the lender, while our excellent consultant to support staff model guarantees a level of service that is second to none.

Call one of our consultants on 0845 330 0809 to find out what mortgage could best suit you.