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Category: MORTGAGE PAYMENTS
MORTGAGE PAYMENTS
Can I make overpayments on my mortgage?
Yes, you can overpay your mortgage in the UK, but the ability to do so and any associated terms can vary depending on your mortgage lender and the specific mortgage product you have. Here are the key points to consider regarding overpayments on a mortgage in the UK: 1. Overpayment Limits and Terms: 2. Early… Read more
What income is included in a lender’s affordability assessment
In the UK, when a lender assesses affordability for a mortgage or other loan, they typically consider various sources of income to determine the borrower’s ability to repay the loan. The income sources generally included in a lender’s affordability assessment can vary slightly depending on the lender and the type of loan, but they commonly… Read more
Cashback mortgages explained
A cashback mortgage in the UK is a type of home loan where the lender provides a cash sum to the borrower upon completion of the mortgage. This cashback amount can vary, but it is typically a fixed percentage of the loan amount or a specific sum agreed upon in advance. Here’s a detailed explanation… Read more
Will I be liable for the mortgage after separation?
Whether you will be liable for the mortgage after separation depends on several factors, including the nature of the mortgage agreement, the ownership of the property, and any legal agreements made during the separation process. Here’s a detailed breakdown of what you need to consider: Key Factors Determining Liability: Options for Handling the Mortgage After… Read more
Higher lending charges explained
A Higher Lending Charge (HLC), also known as a Mortgage Indemnity Guarantee (MIG), is a fee that some lenders in the UK mortgage market charge when the amount you borrow is high compared to the property’s value. Specifically, this charge is typically applied when the loan-to-value (LTV) ratio exceeds a certain threshold, often around 75-80%.… Read more
Subrogation and how it affects mortgages
Subrogation is a legal concept that is relevant in various financial and insurance contexts, including mortgages in the UK. It refers to the right of a party, usually an insurer or lender, to step into the shoes of another party to assume their legal rights and remedies. This often occurs after the first party has… Read more
Interest coverage ratio (ICR) explained
The interest coverage ratio (ICR) is a financial metric used to assess a company’s ability to pay interest on its outstanding debt. It is calculated by dividing a company’s earnings before interest and taxes (EBIT) by its interest expenses for the same period. The formula is: Interest Coverage Ratio=EBITInterest Expense\text{Interest Coverage Ratio} = \frac{\text{EBIT}}{\text{Interest Expense}}Interest Coverage Ratio=Interest ExpenseEBIT​ Importance of the… Read more
Mortgage payment holidays explained
Understanding Mortgage Payment Holidays A mortgage payment holiday can provide much-needed financial relief for homeowners facing temporary financial difficulties. However, it’s essential to understand the details, benefits, and implications of taking a payment holiday before making this decision. In this article, we’ll explore what a mortgage payment holiday is, how it works in the UK,… Read more
What is a discounted rate mortgage?
A discounted rate mortgage is a type of mortgage product where the lender offers borrowers a temporary discount on their standard variable rate (SVR) for a specified period at the beginning of the mortgage term. This discount typically lasts for a predetermined introductory period, often ranging from two to five years, although longer or shorter… Read more
Long term mortgages, how much more expensive are they?
Long-term mortgages, typically spanning 25 to 35 years, have become increasingly popular among homebuyers in the UK seeking to spread out their repayments and reduce monthly costs. While these extended mortgage terms offer lower monthly payments, borrowers may end up paying more in interest over the life of the loan compared to shorter-term mortgages. Let’s… Read more