Mortgages
Mortgage Multipliers
Independent Financial Advisors
Types of Mortgages
Upon receipt of your completed application form, MyPlace will assess your financial capability by using 3 x joint income and 3.5 x single income. This calculation will determine the amount of your potential mortgage.
With any Low Cost Home Ownership scheme you will be encouraged to buy as large a share of a property as you can afford and sustain. Therefore when you are offered a property, through either HomeBuy scheme, you are not necessarily limited to these mortgage multipliers.
Independent Financial Advisors
When purchasing a property, it is important that you receive independent financial advice relating to the type of Low Cost Home Ownership scheme that is most suitable for you, your affordability levels and the most appropriate mortgage for your circumstances.
MyPlace works closely with two Independent Financial Advisors.
- Best Advice Financial Planning Ltd (click here for contact details)
- Imperial Independent Financial Advisors Ltd (click here for contact details)
These companies are regulated by the Financial Services Authority (an independent organisation responsible for regulating financial services in the UK).
You may wish to contact one of these independent financial advisors for a free telephone or home visit interview. They will inform you of the details of the scheme and how much it is likely to cost. You do not have to arrange your mortgage through these financial advisors if you do not want to. (MyPlace do not have a financial relationship with these Independent Financial Advisors and do not financially benefit from any referrals). Details of other financial advisors can be obtained through local estate agents, yellow pages or you can approach a bank or building society direct.
A 'mortgage' is a loan secured on your home. 'Secured' means that if you do not keep up the payments, the lender can sell your home to get its money back.
There are various types of mortgage offers available and it is important you choose one that is suited to your circumstances. Here is a brief description of the main types of mortgage:
- Repayment
Repayment is the traditional means to pay back a mortgage. You make payments every month, part of which goes towards repaying the money you have borrowed (the capital) and part of which pays the interest on the loan. This may also be known as a capital and interest mortgage.
- Interest Only
With an interest-only mortgage you do not pay back any of the capital until the end of the mortgage term. You pay the lender interest on the loan each month.
Repayment of the capital is usually covered by long term payment into an investment scheme. The aim of the investment scheme is to accumulate sufficient funds by the end of the term to pay off the loan and to potentially give you a lump-sum payment too.
- Endowment
With an endowment mortgage you pay interest on the loan to the lender and premiums into an investment plan. The investment plans are designed to pay off the capital at the end of the term.
When an Independent Financial Advisor or mortgage lender gives you information about a particular mortgage and that information is personalised to you (for example, based on the amount you wish to borrow), you will receive a keyfacts illustration.
A keyfacts illustration will help you compare mortgages.
You may also wish to browse the Financial Services Authority's website www.fsa.gov.uk. The ‘Consumer Information' section contains details on the various mortgage products that are available. This site also contains a mortgage calculator, which you can use to see the effects that interest rate rises will have on your mortgage repayments.
If you have any questions please do not hesitate to contact the MyPlace Team. However, as we are not qualified financial advisors we are not able to give you financial advice. You may wish to contact an Independent Financial Advisor for specific mortgage advice and information.
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.