KR Mortgages - Advice
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Mortgage Services

We analyse the whole of market to give you the best mortgage advice. At K R Mortgages we take all the hassle and stress out of finding and arranging your mortgage. We explain and help you decide which product is right for you, we will also manage the whole of your application up until completion.

For the vast majority of cases we do not charge a fee for the advice or services offered.

MORTGAGE FAQ


What is a fixed rate mortgage?

A fixed rate mortgage is one where you and the mortgage lender agree a fixed interest rate on your loan for a set period of time. This period will usually be set for 12 to 60 months, but it could be agreed for a longer period. To get the best deal for this kind of mortgage you will need to plan re-mortgages otherwise the interest rate may revert to the lender's variable rate, which might be considerablly higher.

What are the advantages of a fixed rate mortgage?

Fixed rate mortgages allow you to know exactly what you owe at any time during the course of the loan period, thus there are no sudden changes in your monthly outgoings related specifically to interest rates. Many people prefer to fix their rate as they feel variable rate mortgages are a gamble.

What are the disadvantages of a fixed rate mortgage?

As the interest rate is fixed you do not get any reductions if interest rates in general fall, thus you may be paying more than you might have done if you'd gone for the variable rate.

What is a variable rate mortgage?

All mortgage lenders offer a standard variable rate (SVR) of interest opon which they base their mortgage deals. These standard variable rates are based on the Bank of Englands base rate, thus when they raise or lower their rates the various mortgage lenders will increase or decrease their standard variable rates accordingly.

What are the advantages of a variable rate mortgage?

You will often get a better deal from the lenders with a variable rate mortgage. Also if mortgages rates decrease considerably you will see a reduction in the interest owed on your loan.

What are the disadvantages of a variable rate mortgage?

Well quite simply the only disadvantage is that if mortgage rates increase dramatically you will see a rise in the amount of interest accrued on your loan. With the right advice you can find a lender who will offer a variable rate mortgage and then also cap the interest for a set period.

MORTGAGE INFOMATION


What is remortgaging?

Remortgaging is not about buying a new home but switching your mortgage to another company or deal this can allow you to lower your monthly repayment amounts and save money.

What is conveyancing?

Conveyancing is the legal work involved in buying and selling, it is carried out by a solicitor or a licensed conveyancer.

When buying you need to have one or the other for the sellers/vendors Estate Agent to contact immediately your offer is accepted so try to have one lined up before you get to this stage.

Proving your income

If you're employed: The lender will ask for payslips and/or your P60 for the past two years to prove your income. They'll also will write to your employer asking for confirmation. Some lenders may accept income that's not guaranteed e.g. commission, bonuses etc.

If you're self-employed: Normally his was more difficult and as a result there are lenders who specialise in the self-employed. However you would need to show three years audited accounts. If you haven't been in business long enough then the lender should accept a letter of confirmation from your accountant
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