We’re here to help you buy your home.
There are over 70 lenders available, many more insurance companies and lots of decisions to make when you buy a property for the first time.
You’ll receive clear, precise, advice and we won’t charge you a fee.
At Chetwood Lloyd, we’ve all been first time buyers and know just how much information there is to take in and how many decisions you need to make.
We’ll listen to what you want, guide you through the process and support you every step of the way because we WORK FOR YOU!
From the moment you contact us you will be assigned with one experienced Mortgage Advisor who’ll help you until the day you get the keys.
We’ll make sure you get the mortgage that’s right for you.
Ready to buy a home?
When it comes to buying a home, it can be difficult to know where to start. There are lots of factors to consider as a home buyer, which can be confusing.
We aim to make the home buying process as smooth as possible and we think it helps to know all the steps that lead to success, so you can be sure what to expect as you begin your journey as a home buyer or whether you are an experienced home buyer.
We work for you, not just to find you the right mortgage but help you through the entire process until the day you get the keys!
What type of mortgage should you choose?
Knowing the type of mortgage that is most suitable for your needs is really important, so you should get familiar with the options that are available to you. There are lots of options because not one mortgage type suits everyone.
When it comes to buying a house, your deposit is likely to be the first thing that springs to mind. It can often be the thing that causes the most worry. You can buy a property with as little as 5% of the purchase price. for example, if you are buying a home for £200,000 then the deposit would be £10,000 (5%) this can come from savings, a gift from a relative, or from a Help to Buy ISA.
Loan to value explained
When you are looking into deposits, you are likely to come across the term loan to value (LTV). LTV is often used in conjunction with deposit amounts and is a figure that lenders use to show how much mortgage you have in relation to how much your property is worth – essentially, it’s the proportion you’re borrowing.
How do you calculate your loan to value?
Well, you simply subtract your deposit amount as a percentage of the property value from 100%. For example, say your deposit is £20,000 on a home that is worth £200,000, your LTV will be 90%.
Capital Repayment or interest-only
A capital repayment mortgage means you will be paying off the debt you have acquired. Whereas with an interest-only mortgage, you will only be paying off the interest you have acquired each month – you won’t be making a dent in the actual loan. So when it comes to the end of your mortgage agreement, you will still have your entire mortgage loan to pay off.
While your monthly repayments will be higher with a repayment mortgage, once you get to the end of your mortgage deal, you will have nothing left to pay.
The Financial Conduct Authority (FCA) is clamping down on interest-only mortgages, so many lenders are no longer offering them as an option. Depending on the lender you approach, there are many mortgage deals available, but the two main ones are fixed and variable rate mortgages.
Fixed rate mortgages
Fixed rate mortgages are as the name suggests, fixed for the specified length of your mortgage deal. This means that your interest rate will not move and you will always know exactly how much you are paying. The upside to fixed-rate mortgages is that if rates ever increase, yours will stay the same however if they were to go down, you will be remain on your rate.
Variable rate mortgages
If you invest in a variable rate mortgage, your rate will move up or down, which is largely dependent on the UK economy. Variable rate mortgages come in the form of different types:
Tracker mortgages tend to mirror a UK economic rate, which is usually the Bank of England base rate, so if the base rate goes up, so does your mortgage rate and vice versa.
Standard variable rates
Every lender has a standard variable rate, which also tends to shadow the Bank of England base rate. It tends to be the rate you move to after a tracker mortgage and although it mimics the base rate, lenders can increase their rate as and when they deem necessary, which means costs can be hiked up.
Discount rates are when your mortgage rate is based on a discount of the standard variable rate and they only last a short period of time
Book a convenient time for us to call you…
The first step is to have an informal chat with one of our team so we can obtain some basic details about you and the property you are going to buy. This will be done either on the phone or online and on average might take 20 minutes. We can give you an indication of how much you might be able to borrow and how much the payments will be. We’ll then request you upload the required mandatory documents to our client portal needed to get you an accurate decision to lend.
Upload your Documents…
The next step would be for us to complete a more detailed questionnaire. This is essential so that we obtain more information about you, including your income and expenditure details so that you receive accurate advice. This can be done over the telephone and online with your advisor. We will then be able to make a formal recommendation and provide you with a full detailed illustration about your mortgage, which we will explain to you in great detail so you can be happy that you’re getting the right mortgage.
Accurate Decision to Lend…
With your permission, we will then obtain an Accurate Decision to Lend. This is better than a normal agreement in principle as we will have all the right information at the beginning. We do this so you have complete peace of mind when you find the property you want or put on an offer, both your Mortgage Advisor and Mortgage Lender will be 100% behind you.
When you have agreed the purchase price with the Person/Builder selling your new home, we’ll take over and submit the mortgage application and liaise with the Lender, Estate Agent/Builder and Solicitors so you can relax.
Great news, the Lender has carried out all their checks and the survey of the property, and is ready to give you the money to buy your home. At this stage we will be in touch to explain the mortgage offer. It is also our responsibility to make sure that the mortgage is paid on time, so we will make recommendations if they are deemed necessary.
Get the keys and move in!…
This is the best part. We will make sure that everything is set up so you can collect the keys and start your new chapter in your new home.