Pink Elephant Sales & Lettings - Estate Agents in Bradford

Mortgages
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Finances can be stressful, so we take that stress away from you.

Mortgages

With Pink Elephant we have our own in-house mortgage broker who can offer an initial free consultation to discuss your financial situation regards the purchase of your home. Our in-house brokers are directly authorised and can compare the lending market for something that fits your situation rather than settling for something that makes little financial sense.

  • First time buyer
  • Remortgage your home
  • Buy to Let

A little about us

We at Pink Elephant understand that buying your first home can often be a very scary thought with the many different elements to consider. But we are here ready to clear any confusion. We can help break down the best option that suits you, whether it’s a Help to Buy Equity Loan or shared ownership mortgage.

Below we have broken down the typical options available for you to consider:

Schemes for first time buyers

The Government has set up schemes to help first time buyers jump onto the property ladder. Finding the right mortgage for you is key, something that fits your personal circumstance and helps you plan for the future. We support you in deciding on options around incentives, legal fees and arrangement fees.

How much can I borrow?

We make sure we look at finding a property that is within reach. We explain that although the dream house might be a little to much right this moment, we explain in detail how getting onto the property ladder can help you work towards your goals in a more sensible manner.

Once upon a time it was a simple fact of multiplying your salary by three to understand levels of borrowing, but its become a little more detailed since those days. We will support you to break down jargon and take into consideration interest rates, your outgoing and what ultimately is affordable in the long run. By using sophisticated calculators, we can quickly establish if a certain lender is for you or not.

This all goes hand in hand with your credit score. A rule of thumb is generally anyone who has adverse credit stands a more difficult chance in getting a mortgage. However this wont stop us trying and it wont cost you anything.

Deposits

We always encourage you to save the biggest deposit possible to take advantage of more favourable repayment options. The market does have 5% schemes however although short term this may sound like a good option; we would only recommend this if all avenues were ruled out.

To Fix or not to Fix?

Most lenders offer a fix term ranging from two years going up to ten years. This basically means your repayment amount wont change across the fixed period. Often customers want to pay an additional amount annually to reduce the amount of borrowing but you need to be aware of early repayment charge that could be applicable due to the nature of your contractual agreement.

Those that opt for a fixed rate are generally paying slightly higher in interest than that of a variable rate that tracks the Bank of England interest rates. We run a stress test for those that want to understand what it means if they are out of a fixed period and interest rates go up. Its better to know the consequences of change and base decisions on the back of this.

Variable rates explained

There are normally two types of variable rates:

Trackers are linked to the Bank of England base rate. Quite simply if the Bank of England raises its interest rates, this same amount will be applied to your mortgage repayment amount.

The second type is a Standard Variable rate which is not based on the Bank of England but rather that of the lender’s rate. This is based on the lender and can change irrespective of the changes that may or may not happen with the Bank of England.

Fees for your mortgage

Its important to keep in mind that most lenders will charge arrangement fees which you have the option to pay before the mortgage starts or simply factor it into your monthly mortgage payments across your terms. There are other fees to keep in mind such as valuation fees, broker fees and conveyancing.

 

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

The figures and information provided by this tool are for illustration purposes only

Its so important to keep in tact with what’s going on with your mortgage. Often people find themselves out of their fixed period and pay additional fees that could be avoided. See below for a quick guide to remortgaging.

How to remortgage

It would be wise to first check your existing mortgage to ensure there are no penalties for changing your product. Once this is done, speak to one of the experts at Pink Elephant who will offer independent advice to see what changes could be made.

Similar to when you did your original mortgage, proof of income and bank statements would be need to be provided. The types of information required could vary on a case by case basis.

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

The figures and information provided by this tool are for illustration purposes only

What is a remortgage?

Remortgaging is simply a switch over to a new deal that generally will be more suited for your circumstance since you originally took out the mortgage or could also be a move over to another lender for more competitive rates. Often a move could mean you save money on interest. Some use it as an opportunity to release ‘equity’ from their property to consolidate debt or simply use it for home improvement.

What happenens when your deal ends?

When a deal ends, normally you will move over to the lenders standard variable rate (See first time buyer section for more information). As long as you’re not tied to a deal you are free to check out the market and move to a more financially viable option. It can be with another lender or can be with the same lender but on a different deal.

Should I remortgage?

If you have been switched to your lenders standard variable rate it might be good to consider your options. If your property hasn’t got a substantial amount of equity in your property you might struggle to move over to another lender unless you want to put some of your savings into the new mortgage.

If you’re not on a standard variable rate and you want to switch you might need to check any penalty fees that might be applicable under your existing mortgage. What we offer is independent advice as we can review the whole market and make sure you’re not being offered biased information before making any decisions.

Which remortgage would suit me?

Fixed rate mortgage means you can stick to a ‘fixed’ amount and if you decide to come out of it in that period there could be penalties to pay. Most people like to stick to a fixed period to ensure they can manage their finances and have some peace of mind throughout the term.
Capped rate mortgages are suited to those who prefer the idea of a variable rate but are conscious of not going over certain amount known as the ‘cap’ amount. Its worth keeping in mind that capped rates can also be more expensive than that of a fixed rate.

Discounted mortgages generally offer a discounted rate of interest usually the lenders standard variable rate. It is important to keep in mind that these interest rates could increase significantly over the term of your contract.

Tracker mortgages are similar to variable rate mortgage, but they track the Bank of England base rate at a set margin above or below. Again this could rise significantly based on economical and political movement.

Offset mortgages are generally factoring in your savings. So say for example you have a mortgage of £200,000 but a saving of £100,000 in your account. You actually only pay interest on the offset amount of £100,000. Products like these are generally more expensive than the above options so it would be wise to do a little number crunching before committing to such a product.

How to remortgage

It would be wise to first check your existing mortgage to ensure there are no penalties for changing your product. Once this is done, speak to one of the experts at Pink Elephant who will offer independent advice to see what changes could be made.

Similar to when you did your original mortgage, proof of income and bank statements would be need to be provided. The types of information required could vary on a case by case basis.

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

The figures and information provided by this tool are for illustration purposes only

All you need to know about buy to let mortgages?

Targeted at landlords who have a disposable cash to buy properties for the benefit of rental income. Generally, those who struggle to get onto the property ladder as a result of not having the suitable savings or credit scare often tend to rent. The market offers several options with different lenders.

Deposits

A buy to let is similar to taking out a residential mortgage, however key factors such as a higher level of interest and a much bigger deposit are required (Normally around the 25% mark). If the landlord has disposable cash, they can often put down higher deposits to reap the rewards of rental income.

Buy to Let rates

Buy to let interest rate vary from lender to lender. Generally, you would expect the rates to be higher than that of a normal residential mortgage.

Rental income

Generally, lenders will expect your rental income to be higher than your repayment amount. Most lenders will look at getting 125% rental income or more.

Do you qualify?

Some lenders expect eligible clients to be at a certain age with the right income to suit the mortgage agreement. Some lenders also will limit you to the number of buy to let properties you can have before they lend. This is typically around three, but this has recently been increased to 10 by some lenders or capped to a total of £2 million borrowing.

Interest-only mortgages

Interest-only options are often a good choice for landlords who will simply pay the interest amount which is considerably lower than a repayment amount. This can have a few additional benefits such as a higher net rent figure as well as offsetting a percentage of your mortgage interest amount against your annual tax bill.

The downside to this is that the mortgage amount is not paid and could be problematic in a volatile housing market where property prices could fall lower than the borrowed amount. Also the burden to clear the mortgage when the term of the contract finishes could also be a difficult task if your savings haven’t been managed.

Its always encouraged to do some number crunching before making any commitments to ensure options pursued make financial sense and factor in periods when tenants may leave and no rental income is being received.

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

The figures and information provided by this tool are for illustration purposes only

Factoid

“Bubble wrap was originally designed to be used as wallpaper for homes.”

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“I am so clueless with finances. The gentleman that dealt with me not only sorted my mortgage out but sorted my life out. I was spending so much money on things that I didn’t even know I was spending on – whether you want a mortgage or not, its worth just having a chat with them”.

Sarah Green
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“I didn’t get my mortgage from Pink Elephant, because they were honest to tell me that I was going to be pushing my finances. It was sensible advice. I have now gone back to the drawing board and will be visiting them in 6 months again. Advice like that is priceless. I could have driven myself into financial debt without even realising. Hope you liked the box of chocolates to say thank you”.

Mary & Jack Ross