Residential Mortgages
A residential mortgage is a large long-term loan taken out by one or more individuals to buy a home for residential use - in other words, to live in. All properties with a current residential mortgage must be used as a permanent residence by at least one of the borrowers, and not rented out to tenants or used for any other commercial purposes.
How much deposit is required?
Residential mortgages require a cash deposit of typically between 5% and 40% of a home’s value.
What is the loan to value (LTV)?
Your loan to value (LTV) is how much you’re borrowing (loan) compared to the price (value) of the home you’re buying.
How much will I pay?
The type of interest rate you choose and your financial circumstances influence the residential mortgage rates available to you.
Most residential mortgages are capital repayment, so the interest you pay reduces as your balance decreases.
How does interest on a RM work?
Interest is the fee a lender charges for providing the service of lending to you. It works in the same way, no matter what type of mortgage you have - it's charged as a percentage on what you borrow.
New Build Mortgages
New Build Mortgage Deals
New build mortgage deals
kredi works with a wide range of major new build developers helping clients obtain mortgages and buy their new homes.
Throughout this time we have developed strong relationships with both mainstream and specialist lenders that provide mortgage products for new build properties whether being bought outright or through a help to buy scheme.
These associations enable us to obtain access to exclusive mortgage products and schemes and, with our criteria knowledge resulting in a quick, positive mortgage decision, this is often beneficial to meet a set developer deadline.
Making it easier to buy your new home
If you are interested in purchasing a new build property and need to arrange a mortgage, give our team a call on 0207 112 8896 for expert advice and information about the most appropriate mortgage for your circumstances.
Self-employed/Contractor Mortgages
Mortgages for self-employed or contractor mortgages
If you work for yourself either in a self-employed capacity or as an employed contractor your income levels can fluctuate throughout the year which means that it can be more difficult to get a mortgage application approved.
At kredi, we have years of experience of arranging mortgages for those with flexible income patterns and the self-employed and can source lenders that are willing to provide finance and, depending on your circumstances, arrange a mortgage for you.
Evidence of income and affordability
In theory, self-employed or contract workers have access to exactly the same range of mortgage products as other borrowers.
The difference is that it is more difficult to prove you have the income necessary to make the repayments on the loan for which you are applying on a consistent basis. This is why many lenders are unable to look favourably on these types of applicants.
At kredi, however, we have a range of lenders that are willing to provide finance and, depending on your circumstances, we can source a mortgage for you.
Whilst specific lenders requirements will vary, generally, if you are self-employed or working as a contractor whether on a self-employed or employed basis you will need to have:
• A minimum of two years’ accounts (although some lenders will accept only one year’s) For those on zero hours contracts, you will typically need to show evidence of income from payslips and P60 over a two to three year period.
• A track record of regular work within your sector (not necessarily on a contractor basis)
• A considerable deposit.
• A good credit history.
Let us make your life easier
If you’re not sure whether you would be eligible for a mortgage because you are self-employed or have variable levels of income as a contractor, get in touch with the team at kredi for some friendly advice. Simply call us on 0207 112 8896 or fill out a contact form and we will respond to your enquiry within 24 hours.
More information
It is important to our team that we provide as much help as possible to our clients; after all, we are the experts. So we want to share our knowledge to ensure you understand, as much as possible, how we are helping you to find the best mortgage solution.
To help increase your knowledge and understanding why not arrange an appointment with kredi.
Adverse Mortgages
Adverse Residential Mortgages
In recent years, getting a mortgage has become more and more difficult not only due to increased house prices but also the tighter criteria imposed by lenders following the mortgage market review.
No matter what size of deposit you have, or the nature of the property you wish to buy, if you have a poor credit rating it can often feel very disheartening when trying to obtain a mortgage, with a limited number of lenders willing to consider your application.
Having a mortgage application rejected will worsen your overall credit score. Therefore, if you feel you may struggle to obtain a mortgage due to issues with your credit history, you should seek advice from a mortgage broker before making an application.
At kredi we treat every client as an individual and aim to make it easier for those with adverse credit to secure a mortgage, whether you’re a first-time buyer or a homeowner looking to remortgage or move to reduce your outgoings and address your financial position.
We have strong associations with lenders who are more understanding of adverse credit and we will start by being able to give you independent advice about your ability to get a mortgage so that you don’t worsen your position by applying to a lender and having your application rejected.
What causes adverse credit?
There are a number of factors that contribute to your credit score, some of the most common reasons people have poor credit ratings include:
• Missing a loan, credit card or mortgage payment
• Having an ongoing loan with a payday loan provider
• Being declared bankrupt or entering into an individual voluntary arrangement (IVA)
It’s also worth noting that if you have never taken out credit for anything, you may well find yourself being rejected for certain finance items – because you haven’t yet built up a record of credit.
How do I know if I have adverse credit?
There are a number of tools online that can be used to measure your credit score. The ones frequently used by lenders that you can check yourself are Experian, Equifax, and TransUnion. It is important to note that by using one of the credit checking tools above you will leave a “footprint” on your credit report in the form of an inquiry. This will however not negatively affect your credit score. Further information about this can be located on our FAQs.
Making it easier to find a lender who will accept your application
If you have adverse credit and are struggling to secure a mortgage, we can help. To find out more about how we can get you a mortgage, or any of the other services we offer for those looking to secure a mortgage on a property, just give us a call on 0207 112 8896 or fill out a contact form and we will get back to you within 24 hours.
Flexible/Offset Mortgages
Flexible/Offset Mortgages
At kredi, we know that it’s important to keep control over your income and outgoings and with your mortgage likely being one of your biggest debts, if you want a mortgage that offers some flexibility – an offset or flexible mortgage might be the right choice for you.
With an increasing number of flexibility and offset options now available for mortgages on the market, we can work with you to ensure we find the best option for your circumstances.
How does a flexible mortgage work?
Flexible mortgages work in the same way as a standard mortgage, however, there’s a number of additional options that you may be able to take advantage of to make it easier to manage your mortgage. Typically, with a flexible mortgage you will be able to:
• Make overpayments – ideal if you want to overpay a bit extra each month, or a
lump sum, this, will in turn, reduce your interest charges and help you pay off the mortgage
sooner.
• Some lenders will also let you borrow back any money that is overpaid.
• Make underpayments.
• Take payment holidays if you are experiencing financial problems.
How does an offset mortgage work?
• An offset mortgage links your current and savings account balances to your
mortgage in order to reduce the mortgage balance, many homeowners use offset mortgages
to either reduce their monthly payments or to reduce their mortgage term.
• By linking your savings or current account to your mortgage, your savings balance
will be deducted from your mortgage balance, and you will only pay mortgage interest on the
remainder of the mortgage balance. Your savings stored in your linked account can still be
accessed at any point.
Example: Your remaining mortgage balance is £150,000 and you have £25,000 in a current
or savings account – by linking your account with your mortgage, you will only be charged
mortgage interest on the remainder of the mortgage balance (£125,000).
Things to consider
As with any mortgage, there are a number of considerations to take into account before
choosing to go forward:
• Flexible mortgages often have higher standard interest rates than other mortgages.
• Taking a holiday or making an underpayment will result in paying more overall – you
should only take advantage of these features if you really need to.
• Mortgage interest rates are generally higher than interest rates on savings
accounts, therefore, offsetting your savings balance towards your mortgage can mean your
money is working harder.
• Savings balances linked with your offset mortgage will not earn any interest.
Making it easier to control your mortgage
If you are considering a flexible or offset mortgage our team of expert mortgage advisers can help. From initial enquiry to moving day, we’ll be there to assist you and make recommendations based on your individual circumstances, and we’ll offer you mortgage options best suited to you. Just give us a call on 0207 112 8896 or get in touch here and we’ll get back to you in 24 hours.
Mortgages for Non-UK Residents
Mortgages for Non-UK Residents
Expat mortgages
As an expatriate, it can often be difficult to arrange a mortgage on a UK property whilst livingoverseas. Lenders often set tougher lending criteria for expats and communicating with amortgage broker and other parties from abroad can be difficult.
At kredi, we understand these difficulties and can help you every step of the way. From our relationships with specialist lenders, to our team of advisers who will be available to you when you need them, we can take the pressure from you and help you securethe funding you need whether it’s a residential property or a buy to let investment.
Why are expat mortgages generally harder to secure?
Those applying for expat mortgages may find it difficult to secure funding, even if they have a suitable deposit and are able to afford the repayments.This is because expatriates can often be considered ‘high risk’ by most high street lenders as pursuing debt overseas is undeniably harder than in the UK. Many high street lenders have reduced or completely stopped offering mortgages to those living outside of the UK.
Making it easier to secure a mortgage from abroad
If you are considering buying a UK residential or buy to let property from abroad our team of expert mortgage advisers can help. By working closely with our specialist lenders, we can help you secure a mortgage on your desired property and handle everything on your behalf whilst you are still abroad. Just give us a call on 0207 112 8896 or get in touch here and we will get you on your way to moving into your new home.