Mortgage Advice in Newcastle: All You Need to Know


Posted May 11, 2023 by tudmihai

You are a truly responsible person, and because of this, you know the value of a pound saved. A mortgage can represent an intense financial commitment influencing your future life.

 
You are a truly responsible person, and because of this, you know the value of a pound saved. A mortgage can represent an intense financial commitment influencing your future life. And a good deal found now can turn into tens of thousands of pounds saved in the future. But there are many different types of mortgages and government schemes on the UK market, so it's vital to seek the services of professionals who can guide and advise you on all your queries. Are you a young couple based in North East England? Then a good idea would be to call on the professional services of a firm that provides mortgage advice in Newcastle.

Are you interested in buying a property in North East England to rent at a great price? In this case, you will most likely be interested in a buy-to-let mortgage. Are you a young couple with professional experience in a critical occupation looking for your first home? Then you'll be interested in the First Home Scheme. You don't have the financial means to justify a traditional mortgage at this point in your life? Then through a mortgage broker in Newcastle, you could apply for a shared ownership mortgage. But all these terms can be confusing to the unqualified, so in the next few minutes, we will explain what these types of financial instruments are and outline how a professional mortgage broker could help you find the best deals for your family's financial security.

What Are the Advantages of a Shared Ownership Mortgage?

The shared ownership programme is a government scheme with a history of almost fifty years, which has enabled hundreds of thousands of families to become homeowners over the years. A shared ownership mortgage can allow you to buy a certain percentage of your home through a mortgage, with the remainder of the property still subject to rent payments to the housing association. The deposit you have to pay for such a mortgage is the same as for a regular home loan, i.e. at 5%, but as you are only buying a fixed percentage of your home, the amount paid will be significantly lower. Likewise, the monthly rent you must pay for the rest of your home will be lower than the market average.

As of April 2021, the new shared ownership model launched by the UK government states that the minimum share that can be bought in a property through this scheme is 10%. Also, with the revision of the system, a period of 10 years has been introduced whereby the dwelling provider is required by law to help with the costs associated with essential estate maintenance. Calling on a firm specialising in mortgage advice could help you discover the best conditions to benefit from this scheme. As a general requirement, however, your household's income must not exceed £80,000 per annum, and you must also be either a first-time buyer or a previous homeowner who has since sold their property.

Are You Interested in Buying a New Home?

Like many British families, you probably dream of moving into a newly finished, thermally and energy-efficient home. These properties, however, are often more expensive and represent a financial effort that makes them unaffordable for the average UK household. But there are solutions, and the First Home scheme could be one of the best. What is it? It's a financial assistance scheme offered by the UK government whereby first-time home buyers can receive a discount of up to 30% of the market value of a new home. The exact criteria may differ depending on the city council, and the number of such properties is limited, so calling a https://newcastlemoneyman.com/ mortgage broker in Newcastle can be crucial for finding out more information.

However, to qualify for this financial scheme, you must be a first-time home buyer, your combined income should not exceed £80,000, and you must be able to afford the mortgage attached to the home purchase. The minimum deposit you must pay will be 5%, and the mortgage you choose must cover at least 50% of the cost of the dwelling. Properties available under this scheme have a price cap of £250,000, although this amount is almost double in London. Once the home is purchased, the 30% discount will be deducted from the unit's selling price to future first-time home buyers. Housing places available through the scheme are currently limited and are first available to emergency service workers, such as firefighters, NHS staff and police officers.

How About a Buy-to-Let Mortgage?

Perhaps you are a person who wants to invest in your family's financial future. In this case, turning to an agency specialising in https://newcastlemoneyman.com/ mortgage advice in Newcastle can be crucial to discover the best terms to obtain a buy-to-let mortgage. As a mortgage advice specialist would tell you, buy-to-let mortgages are a type of home loan granted to people who wish to purchase and rent a property. The purpose of such a mortgage is to buy a dwelling that will produce a passive, taxable income, which over time, can appreciate considerably.

Because they represent a higher risk for lenders, these mortgages often require a higher up-front deposit, usually over 25%, and thus they come with higher interest rates. To benefit from them, you must also have a great credit score and be able to present to the lender an income projection for the next fiscal year. However, although they are harder to obtain, buy-to-let mortgages also offer massive advantages. Firstly, the properties purchased, being most often located in desirable regions, are most likely to appreciate over time. Furthermore, the interest paid on the buy-to-let mortgage may be deducted from your income when your financial liability to the UK government is calculated at the end of the tax year.

It’s Important to Make a Wise Decision

Newcastle is a diverse and growing city that has distinguished itself in recent years with a rich economic output in the retail, finance and tourism sectors. And because of this, the city's property market is also growing steadily. Currently, the median home price in Newcastle is over £230,000, representing an increase of over 28% compared to values recorded in 2019. Therefore, the professional services of a mortgage broker have become crucial to identify the best financial solutions offered by national or regional lenders.

The professional experience of mortgage counsellors can be crucial in discovering whether you qualify for the countless financial aid schemes the UK government offers. In addition, experts employed by firms specialising in mortgage counselling could work with you to scour the offers of national lenders in the UK. And everything is to your advantage, as their fees are often paid directly by the financial institutions that take you on as a client. A specialised broker is, first and foremost, a necessity, and their services are a tool by which you can ensure the economic comfort of your family.
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Issued By Mihai
Business Address newcastlemoneyman.com/
Country United Kingdom
Categories Finance
Tags mortgage advice in newcastle mortgage broker in newcastle
Last Updated May 11, 2023