Mortgage Advisor

A mortgage advisor can make the difference

For many of us, a mortgage is one of the largest financial commitments we’ll make during our lifetime, amid guarantees of changing market conditions, fluctuating interest rates and quite often changes in personal circumstances. Managing risks effectively is vital to avoid any catastrophic situations in the future.

Mortgages overview….

Like so many other financial products there’s an awful lot of “jargon” when it comes to mortgages and finding which one is right for you.  From repayment, tracker, capped through to interest only – and that’s without any part ownership, or buy to let options! Getting independent advice from a financial adviser who understands the mortgage market will be worth their weight in gold as they’ll be able to search the “whole market” to get you the best mortgage for you.

Firstly you’ll need to know how much you can afford to repay per month which is ascertained through an “affordability calculator”, and be prepared for mortgage providers to err on the side of caution when it comes to how much they’re willing to lend you.

You’ll also need to have saved up a deposit – usually around 5-10% – but this can fluctuate – which in today’s housing market is no small amount.  However the more cash you can put into your deposit, the better deal you’ll receive on the final mortgage loan.  At this point you’ll also need to decide whether to repay via a repayment mortgage (paying interest & capital off each month), an interest-only mortgage (which is self explanatory and will leave you still requiring to settle the capital sum) or a combination of the two.  The length of an average mortgage term is usually 25-35 years, meaning your lifestyle and circumstances could change – drastically. Be honest with the level of commitment you’re prepared to accept and always address any problems head on with your provider, should they arise.  You will also need to consider mortgage protection insurance.

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"Life is either a daring adventure or nothing at all."

 – Helen Keller

Equity release:

Equity release enables homeowners to tap into wealth that they have accumulated whilst living in their property.  This could be a consideration later on in life (aged 55 years+) if you’re looking to raise funds to help your children get onto the property ladder or to increase pension & retirement income. There are two schemes currently available – Lifetime mortgages & home reversion.

Lifetime mortgage
A lifetime mortgage is simply a loan secured against your home.  The loan, plus accrued interest, is repaid once the property is sold for whatever reason, ie downsizing, moving into long-term care etc. You can also choose to repay this loan in monthly payments, similar to a normal mortgage.

Home reversion
This is where you sell part or all of your property to a home reversion company in exchange for a lump sum or a regular cash income.  However in so doing, you will no longer be the sole owner of your home.

There are positives and negatives for both options and you need to take the time to decide which option – if any – are right for you.  Financing your retirement through the use of your home may sound a tempting and practical solution, however as with any major financial decision, always seek independent advice from a trusted source.

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"An investment in knowledge pays the best interest.."

– Benjamin Franklin

Help-to-buy schemes:

Help to buy is a Government backed initiative that since 2013, aims to increase the levels of home ownership within the UK.  It’s run jointly by the Treasury and the Department for Communities and Local Government, delivered in partnership with the Homes and Communities Agency (HCA) and is available through appointed Help to Buy agents and mortgage lenders.

Help to buy ISAs
HTB ISAs were replaced by Lifetime ISAs in 2019 and are designed to help first time buyers to save for a house deposit by boosting their savings through a Government funded bonus of 25% for every £200 saved.  In addition you’ll receive a further £50 whenever the ISA is closed.  The minimum Government bonus is £400; the maximum is £3,000 so to receive that you’ll need to save £12,000. Help to Buy ISAs were available on a personal basis which means if you’re buying a property jointly, you can have two ISAs and receive a bonus totalling £6,000.

Lifetime ISAs
These were introduced in 2016, and are designed to help you save towards home ownership and also retirement. 

As with the HTB ISA, the Government still pays a 25% tax-free bonus, however with the scheme now covering both house buying and retirement, this bonus is now paid monthly as opposed to when the account is used as a deposit for a house.

The scheme also has a strict eligibility criteria relating to age.  You have to be aged 18-39 years to be able to open a Lifetime ISA, sadly if you are older than this you will lose this additional source of Government-supported saving.

There are other Help to buy schemes available, including those for the Forces – contact us for more details and to discuss the options that are suitable for you and your circumstances.

How we can help:

At One Financial Solutions, our mortgage advisors will help you determine the best mortgage solutions for you, whether you’re looking for a first time buyer mortgage, moving home mortgage or looking to release equity from your family home.  As a completely independent firm of financial planners and mortgage advisors in London, Glasgow and throughout the UK, we will recommend a mortgage from the entire market, to ensure that whatever we advise, is the best advice for your individual circumstances. 

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Testimonial:

“Christine went above and beyond to help myself and my two brothers understand what a mortgage consists of, what the best package for our circumstance would be, and then promptly set everything up for us.” – April 2024

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We’re more than just financial advisers

At its core, One Financial Solutions believes in restoring humanity to the often impersonal landscape of financial management.

Recognising that each individual’s life, interests, and mindset are pivotal components in the financial journey, offering personalised guidance that transcends mere numbers and charts.

By fostering a deep understanding of our clients’ circumstances, One Financial Solutions empowers individuals to navigate their financial paths with confidence and clarity, ensuring that their aspirations and dreams remain at the forefront of every decision.