Mortgages

First Time Buyers

Buying a home is likely to be the biggest investment you will ever make in your lifetime. Whether your a first time buyer looking to get on the property ladder or a seasoned home owner looking to sell your current home and buy a new one.

How Much Can I Borrow?
Different lenders have different formulas for determining how much they will be willing to loan to you. If you wish to get a rough idea of how  NMF may be able to help you arrange a mortgage, please contact us with your query using the contact us form.

How Much Will It Cost Me?
The cost of your mortgage is dependent on how much you borrow and the interest rate you qualify for.

At NMF we can arrange both interest only and repayment mortgage plans. You can use our online mortgage calculator to find out how much the mortgage you are looking for may cost you.

Status Mortgages

You may qualify for a status mortgage if each applicant can provide a detailed continuous history of their income over the past year. A lender will generally offer their best rates for a status mortgage because it is easy for them to check your employment history to be sure that you will be able to afford your new mortgage payment. They usually place strict rules on how you must prove this income when you apply. If you can not or do not want to provide detailed income proof then alternatively you can look at self certified mortgages.

The overall cost for comparison is 8.2% APR. The actual rate will depend on your circumstances. Please ask for a personalised illustration, Rate correct as at 28/03/2008

Employed Applicants
The following are examples of the kinds of evidence Lenders will require if you are an employed applicant:

• Employers Reference (you will be deemed self employed if you own more than 25% of the common stock of the company employing you)
• P60 & 2/3 months of computerised payslips
• Hand written payslips and pay packets may be acceptable - but you will need to check with us first
• Probationers and contract workers may also qualify for a status mortgage with a letter from their employer(s)

Each lender has their own guidelines for the evidence they will need and this is only to give you a general idea of what they will require. The specifics will depend on your circumstances.

Self Employed Applicants
A self employed person can still qualify for a status mortgage provided they can clearly provide evidence of their earnings. The following kinds of evidence will be acceptable if you are self employed:

• Accountants Certificate
• Audited Accounts prepared by a qualified accountant
• Inland Revenue self assessment certificate covering the previous tax year
• A minimum period of self employment is likely to be required - typically 6 months or more

Each lender has their own guidelines for the evidence they will need and this is only to give you a general idea of what they will require. The specifics will depend on your circumstances.

We can help you decide what kind of mortgage suits your circumstances as we process your enquiry.
There is no obligation so contact us now!

Self Certification

A self certification mortgage is a mortgage in which you are able to declare your income without having to show substantial proof that you earn it. You may want to consider this type of mortgage if you have difficulty proving your income. In general most lenders perceive self certification as a greater risk  and will charge a slightly higher interest rate. If you can prove your income then read about status mortgages, shown above this paragraph.

Employed Self Certification
Most employed applicants will be able to prove their income by reference to their payslips and an end-of-year P60. However if you have additional income that is:

• Seasonal or Contract Work
• Casual Labour
• Erratic Bonus, Commission or Overtime Payments

Then you can apply for a self certified mortgage. You need only declare that you have additional income required to be able to repay your mortgage.

Self Employed Self Certification
Self certification ex expressly designed for the increasing number of self employed in the UK employment market. If you have a good track record with audited accounts then you should consider a status mortgage. If one of the following applied to you then self certification of your income may be better suited to your circumstances:

• You lack three full years of trading accounts.
• You current earning are significantly greater than your account can prove.

Lenders are now much more realistic when looking at affordability and will take a balanced view of both your income and expenditure. Why not enquire now to see how we can help you?

The overall cost for comparison is 8.2% APR. The actual rate will depend on your circumstances. Please ask for a personalised illustration, Rate correct as at 28/03/2008

Types of Mortgages

Repayment Mortgages:
The repayment is made up of part capital and part interest so at the end of the mortgage term your home is payed for.

Interest Only Mortgages:
The repayment is the interest on the loan and therefore the capital has to be paid at the end of the term.
A savings plan, such as an ISA is recommended to repay the capital at the end of the loan.

Fixed Rate:
Payment remains fixed for a certain amount of time usually between 1 and 5 years, most commonly 2 or 3 years.
At the end of the fixed term, the mortgage will change to a different rate usually higher.
The advantage of this type of mortgage is that if interest rates rise - the repayment will stay the same and you will know the monthly payments for a fixed time. The disadvantage of this is that if interest rates fall you would not benefit from lower repayments.                                                                                                                                                              

Standard Variable Rate:
This is usually set by the lender. Your repayments are linked to interest rates, so your repayments can go up and down as interest rates rise and fall. The lender controls when they change their rates based on the bank base rate.

Tracker Mortgage:

As the name suggests, this type of mortgage tracks the bank base rate.
The advantage of this mortgage is if interest rates fall so will your repayments.
The disadvantage of this mortgage is if interest rates rise so will your repayments.

Discount Rate:
This type of mortgage can be a standard variable rate mortgage with an initial discount period from the lender, typically 12-24 months.       

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

There will be a fee for mortgage advice. The amount will depend on your circumstances. Our typical  fee would be £695.