MORTGAGE FAQS
Company Information
Mortgages 4u (Liverpool) Ltd is an appointed representative of Home of Choice Ltd which is authorised and regulated by the Financial Services Authority. Our permitted business is arranging Mortgages and Insurance. You will receive advice and recommendation from us. We may ask you some questions to narrow down the selection of products that we will provide details on, upon request.
Loans vs. Remortgages
Loans vs. Mortgages
There are many reasons why people remortgage. Many people are paying more than they need to on their mortgage payments and more people are remortgaging today than at any time in the past 50 years or more. Mortgage interest rates are usually lower than any other forms of borrowing money. A remortgage has several obvious benefits:-
- Reducing your outgoings
- Debt Consolidation
- Home Improvements
- Buying a Car, Boat or Caravan
- Matrimonial settlements
- New Business Start Up
- Buying another property (as an investment, or possibly a holiday home)
- Giving yourself a 'fresh start'
Adding existing debts to your mortgage may both extend the repayment term and increase the overall cost of the debt
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Whilst a remortgage is usually at a lower interest rate than a secured loan there may be reasons why you think a secured loan would be a better choice. For example:-
- If your existing mortgage has an early repayment charges.
- If you are looking to pay the loan back over a shorter period than your existing mortgage.
Secured loans can be used for any legal purpose including debt consolidation, major purchases, home improvements etc. For more information. Click here for a Quick Quote.
Mortgage and Loan Questions
- What information will I need to complete an enquiry?
The enquiry process is much easier if you have the following items to hand before you start:
- Approximate value of your property
- Approximate amount owed on your mortgage (if remortgaging)
- Loans secured on your property (if any)
- Amount of Mortgage Arrears (if any)
- Details of CCJs, Defaults or IVA’s (if any)
- Bank Details
- Recent wage slips (if employed) or, Accounts (if self employed)
- Why cover my repayments with a protection plan?
Contrary to popular opinion, the state does not pay your mortgage payments if you lose your job or are off work. They may pay the interest only (ie. not the capital) part of your payments only after you have been off work for a minimum period of time. As you can appreciate the ‘Government Safety Net’ doesn’t catch many people. We therefore recommend, very strongly, that you take adequate protection against such an eventuality and we can usually include such cover in the loan or mortgage we arrange for you.
- How much can I borrow?
The minimum mortgage advance is £25,001 (or £15,001 for remortgages). The maximum loan you could apply for depends on several factors:- The value of your house, your income and your credit history. Our loans and mortgages can be repaid over anything from 5 to 35 years.
- How quickly can I get my mortgage or loan?
We usually arrange completion within 6 weeks of receiving your completed enquiry form (and associated documentation).
- Will anyone contact my employer?
Contact will only be made with your employer with your written consent.This may not be necessary if you have your last 3 months wage slips.
- Will anyone contact my existing lender?
Contact will only be made with your existing lender with your written consent. This may not be necessary if you have an up to date statement.
- Will a sales representative visit me?
This is entirely your choice. We have regional mortgage specialists that can visit you to explain the products and services on offer and help you complete the forms. Alternatively if you do not want a representative to call then we will deal with your enquiry by telephone and post. Remember we are working on your behalf and it is not in our interest to pressure our customers into a product that does not suit their circumstances.
- How do I know that I am dealing with a reputable firm?
We are an appointed representative of Home of Choice Ltd which is authorised by the Financial Services Authority (FSA). Our permitted business is arranging Mortgages and Insurance. You will receive advice and recommendation from us at request. We may ask you some questions to narrow down the selection of products that we will provide details on. You will need to make your own choice on how to proceed.
The Financial Services Authority have a list of all firms that are authorised and regulated by them. Mortgages 4u (Liverpool) Ltd reference number is 414144. You can check Mortgages 4u (Liverpool) Ltd. authorisation on the Financial Services Authority Register by visiting the Financial Services Authority website www.fsa.gov.uk/register or by contacting the Financial Services Authority on 0845 606 1234.
- What is the difference between an interest-only and repayment mortgage?
An interest only mortgage is where you only pay the interest charge each month. At the end of the term you will still owe the balance you borrowed and this is typically repaid from the proceeds of an endowment policy, ISA or other investment policy that you may have taken with the mortgage (it is your responsibility to ensure that a suitable repayment vehicle is in place). We suggest you seek independent financial advice as we cant advise on repayment vehicles . With a repayment mortgage the payments you make are calculated to include paying off the loan by the end of the term.
- What fees will I be charged?
Enquiring about a loan, mortgage or remortgage costs you nothing.
Please ask for a personalised illustration that will give you details and our fees for advice. Please ask for a personalised illustration that will give you details of the fees for the scheme that fits your personal circumstances and our fees for advice. In most circumstances you can add these costs to the advance if you wish. If you do this you should bear in mind you will be paying interest charges on the fees that were added.
- Are there any early repayment charges?
This will depend on the lender and the mortgage you choose. A personalised illustration will give you details of any early repayment charge.
Secured loan early payment penalties are in accordance with the rules laid down by the Office of Fair Trading and information on these can be found at http://www.fisa.co.uk
Security and Privacy
- Will the information I enter on this web site affect my credit rating?
Where necessary to research your mortgage options we will disclose information to our agents, product providers, regulatory bodies and auditors. For certain products we may search the files of credit reference agencies who will record the search. This information may be shared with other credit providers and used for credit decisions and when necessary fraud prevention. Your details are strictly in-confidence and our enquiries will not affect your credit status.
- How do I know my personal information is secure?
Your data also has the statutory safeguards of the Data Protection Act of 1998. This ensures we follow strict security procedures in the storage and disclosure of information that you have given us.
Secured Loans are not regulated by the Financial Services Authority
Secured Loans are on a referral basis to a preferred specialist supplier
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
There may be a broker fee payable. The precise amount will depend on your circumstances but typically will be 2% of the loan amount payable on completion.. An additional fee of £95.00 may be charged when submitting your case to the lender. There is no initial consultation fee payable.
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