Commercial mortgages for any type of commercial property. Offices, industrial units, shops & semi-commercial.
Buy-to-Let mortgages for landlord & property investors. We can help source the right buy to let deal.
Loanable can help finding all types of mortgages
Are you a first-time home buyer?
Are you looking to remortgage your home for a lower interest rate, or need to remortgage from a Tracker Mortgage?
Moving house, and need a new mortgage?
Looking to build a property portfolio as a landlord and need a buy-to-let mortgage?
Seeking a commercial mortgage to develop a property, or have a business in need of new office space?
Looking for a mortgage today?
Loanable finds mortgagesWhy spend your time and energy shopping around for a mortgage when Loanable can do the shopping for you
As a first-time homebuyer it can confusing and daunting trying to understand mortgage terms, and what mortgage type is best for you.
Things like how much of a deposit do I need?
What is a Tracker Loan?
How can I reduce my mortgage payments?
Loanable can guide you and explain the different types of mortgage loans.
You may have an existing mortgage and are not happy with your interest rate, and would like a lower rate to reduce your monthly payments.
Maybe you had a fixed rate mortgage that is now going to change to a variable rate, and your payments are going up.
Suppose you have equity in your property and wish to release that equity.
Sometimes changing mortgage lenders, and shopping around can save you money, and when you think about how much your mortgage is, and how long you are paying it, the savings can be staggering, thousands and thousands of pounds £££.
Moving up the property ladder and selling your current home to buy a new one. You may need a mortgage again, however this time, you may have a larger deposit, and are looking for the best deals out there.
Perhaps you are looking to buy a holiday home, or a second home in a quiet village or town. Unless you are paying cash, you’ll need a mortgage.
If you want to buy a property to let out and be a landlord, you need a buy-to-let mortgage.
Accidental landlords risk being in violation of their current owner-occupied mortgage loan, in addition to insurance issues.
If you want to be a landlord and have a property portfolio, you need a buy-to-let mortgage.
Commercial mortgages are different than a “residential mortgage”, they are for properties that are used for commercial purposes and a place where business may be conducted.
It may be a shop or store, office space, if it is a property that houses a business, you need a commercial mortgage to buy it.
A Quick Look at The Different Types of Mortgages
As you can see there are various mortgages for different needs, and with these mortgages there can be even further types to choose from:
* Fixed Rate Mortgage: Fixed rate mortgages are just as they state, the interest rate is fixed for a specific term. Which means if the interest rate is 5% for five (5) years, for those five years, your mortgage payment will not change.
In most instances at the end of the fixed rate, the mortgage will switch over to the lenders standard variable rate or SVR. This rate can and usually is higher than the offered fixed rate.
* Tracker Mortgage: Tracker mortgages are mortgages that have a foundation interest rate, which is usually the Bank of England’s base rate, and have an add-on interest amount added to it.
If a mortgage lender offers a Tracker interest rate of 2.5%, this is made up of the BOE’s base rate and the lender’s interest rate.
If the BOE changes their base rate, up or down, your mortgage interest rate can go up or down, as can your mortgage payment.
* Variable Rate Mortgage: This form of mortgage is similar to a Tracker mortgage, but it does not follow the BOE’s base rate, it changes according to what the lender states. Just because the BOE lowers their base rate, does not insure or mean the mortgage lender will lower their variable rate.
For borrowers who are unsure of their finances, or afford changes in their mortgage payments, variable rates can be financially cumbersome.
* Interest-Only Mortgage: When you take out a mortgage, each month you pay back a portion of the principal of the loan, and also the interest. With an interest-only mortgage you are only paying the interest each month, nothing is paid towards the principal amount of the loan.
So, in theory, your mortgage balance never goes down as you only pay interest.
This does keep the mortgage payments lower, which can allow someone to afford to buy a more expensive property, or to simply keep their mortgage payments reduced for a period of time.
FAQs about Mortgages
What Is A Mortgage?
A mortgage is a loan, just like other loans, but it is a loan specific to buying a property.
Just like a car loan or car finance is for buying a car, a mortgage is a loan to buy a property.
The property can be a flat, a terrace house, a fully detached house, or a castle on a huge estate, the fact is that the loan, the mortgage, is secured by the property.
There are various types of mortgages, and also different ways to qualify for a mortgage.
If you are buying a property to live in, you are going to want an owner-occupied form of mortgage. If you are buying a property as an investment to let-out, you need a buy-to-let mortgage, and if you are buying a property for a commercial venture, you will need a commercial mortgage.
Think of a mortgage as a secured loan, which is secured against a property.
What is a deposit, and how much of a deposit do I need?
A deposit is a sum of money that you have saved to put as a down payment, or towards a property you wish to purchase. It is usually expressed as a percentage of the sale price of a property.
An example may be you wish to buy a flat being sold for £150,000. A 10% deposit would be £15,000, a 20% deposit would be £30,000.
Your deposit does two things:
* It reduces the amount you need to borrow to buy a property
* It shows good faith on your part and reduces a lenders risk on a mortgage loan
A property sold for £150,000 with a £30,000 deposit only requires a mortgage of £120,000. Which is a loan-to-value of 80%.
As to how much of a deposit you need to buy a house can vary among lenders, and also according to the different home-buying schemes.
Some schemes require only 10%, and some such as the governments Help to Buy scheme can be as low as 5%.
I have bad credit, can I get a mortgage to buy a property?
Mortgages are secured loans, so they are underwritten and handled differently than other unsecured or personal loans.
Having bad, poor, or no credit, does not necessarily mean you cannot be approved for a mortgage.
There are a few factors that can help in getting a mortgage with bad credit:
* When was the bad credit: how long ago and why did you miss payments or have defaults
* Your deposit: the larger your deposit the better your chances of being approved for a mortgage
* Guarantor: you may need a friend or family member to guarantee the mortgage
Just because you think you may be rejected for a mortgage, don’t let this stop you from speaking to a professional and finding out if you will or will not be approved, and also what you need to do to be approved later.
A no now, does not mean a no always and forever.
What kind of mortgages are there, and which one is right for me?
There are many different types of mortgage, and as to which one is best suited for you will depend on your circumstance, and a few other factors.
In brief some of the mortgages available are:
* Interest only: where you only pay the interest on the loan each month, keeping the payments lower
* Tracker: a mortgage that the interest rate is set to follow the Bank of England’s base rate, plus a set percentage
* Variable rate: a mortgage that the interest rate changes according to guidelines set by the lender
* Fixed rate: the interest rate for the mortgage stays the same for a set fixed period
I currently have a fixed rate mortgage and need to remortgage as my interest rate and mortgage are coming to an end. How do I do this?
Your first port of call is going to speak to someone and find out what not just what your options are, but also the current interest rates, and what mortgage loans you qualify for.
You may find you no longer qualify for some mortgages, but now qualify for others, which may be in your better interest.
If you now have equity in your property, or your finances have changed, this could be to your advantage.
I am going to buy a terrace house near me to let out. I have a large deposit and this is my first venture into being a landlord. Is there anything I need to know?
That’s a very good and complex question, as yes, there is quite a bit you need to be aware of.
First, you will need a buy-to-let mortgage as you are not planning on being an owner-occupier of the property. BTL mortgages are underwritten and approved differently.
You will also need to look at what insurances you may need, such as landlord insurance, and also consider maintenance issues, tenants right-to-let, and also the deposit schemes landlords need to adhere to.
It may sound like a lot, but you can do it, and being a landlord can be a challenging, and rewarding job.
How long can I get a mortgage for?
The length of a mortgage can vary, they can be 10 years, 15 years, even as long as 20 years or more.
The shorter the term or length of a mortgage, the quicker it is paid off, but the higher the monthly payments.
The longer the term, the lower the monthly payments. However, you will pay more in interest on a longer term mortgage.
There can be a few factors that determine how long your mortgage will be, affordability and payments can be one, and also your age. While mortgages are now being offered to older persons, you have to ask yourself how long will you be working and want to pay the loan.
How much of a mortgage can I be approved for?
This may be the number one most asked question people have when looking to get on the property ladder and get a mortgage. The reason is due to the fact properties have become expensive, and the mortgage does dictate what you can buy.
However, the answer to your question, is not so straight forward.
How much of a mortgage you can be approved for can depend on a few issues, such as affordability, and how much deposit you have, and your credit.
If you wish to buy a property that the mortgage payments will be £800 a month, you need to show the income that you can afford this amount. Which then brings up the question of other debts. What other bills and debts do you have?
You may qualify for a £200,000 house payment, but when you factor in the gas, electricity, council tax, and other expenses, it suddenly may not seem so affordable.
As you can see it is not just a set figure or amount as there are many considerations.
I want to sell my house to my son. The house is worth quite a bit, but needs work and repairs. I am going to sell it to him for a song, but he will need a mortgage. Can we do this?
Yes, it sounds like a nice gift, gifted equity is a way to help our children and grand children, to get on the property ladder.
I am buying a property, should I take out a mortgage with my partner as they will be living with me?
That depends on a few things, such as do you qualify for the mortgage by yourself, and if they will be contributing to the buying of the property.
From an affordability stance, having both of you if you both are working, on the loan, can make getting a mortgage easier.
I want to remortgage to access the equity I have in my property. It is worth £220,000 and I have a mortgage balance of £100,000. How much can I remortgage for to release this money?
The amount of money you can release from your property can vary among lenders, you may want to use 70% of the value of the property as a rule of thumb. Which means if your property is worth £220,000, you may be able to access £154,000, which minus the £100,000 you owe, means you may be able to release £50,000.
What interest rate can I get for a mortgage?
Interest rates on mortgages vary among lenders and can vary depending on a borrower’s circumstance.
The more of a deposit you have can also influence what interest rate you receive.
Usually, the higher your credit score and if you have a large deposit, will get you a lower interest rate.
I have come into some money and want to pay off my mortgage early. Can I do this without paying a penalty?
That will depend on the terms of your mortgage and your mortgage lender.
Many mortgage lenders will have what is known as “pre-payment penalties” or early pay off fees. These fees or penalties are a way to keep borrowers locked into their loan, and insure the lender receives the payments, and interest they rely on.
In some instances, these pre-payment penalties are only for a set period of time, 24 months, 60 months, but not the entire length of the loan.
I have been made redundant and can no longer afford my mortgage, what will happen?
It is unfortunate about your redundancy. Will you be receiving any benefits? Can you prioritise your bills and concentrate on paying your mortgage? And have you spoke to your mortgage lender?
Depending on a few things, you may be able to get a short holiday on the payments.
If you cannot qualify for any payment holidays, and do not pay your mortgage, the lender may look at repossessing the property. This is not something any lender likes to do, it is not a good thing for all involved.
You will have time before any repossession proceedings were to begin, so hopefully you work out some arrangements with your mortgage company.
What is the Mortgage Market Review I have read about?
The Mortgage Market Review or MMR, was a set of new rules introduced back a few years ago, and in short means that mortgage lenders need to review a borrower’s income and other debts to insure affordability in granting a mortgage.
This can limit self-certified mortgages, and also not just guarantee that someone with a large deposit is automatically granted a mortgage.
What fees do I have to pay for a mortgage?
When buying a property there are fees involved, and fees involved with a mortgage.
You may need a solicitor to handle the paperwork involved, a valuation fee, possibly an arrangement fee by a mortgage lender or broker.
In some instances, some of these fees can be included in your mortgage or paid out of your deposit.
What insurance do I need when I buy a property and get a mortgage?
As a condition of most mortgage lenders, you will be required to have building insurance on the house/property. In addition to this, you may wish to have contents insurance as well.
Other insurance policies, such as mortgage insurance, or mortgage payment protection, is up to the individual themselves. These types of policies will pay the mortgage payments should the borrower become injured and cannot work, or critically ill. They are usually not required as a condition to approve a mortgage.
What about mortgage indemnity insurance?
Mortgage indemnity insurance is more for the lender of a mortgage, as it insures the mortgage company will not loss any money, should the borrower default on the loan.
This mortgage indemnity guarantee is usually reserved for mortgages that have a high LTV or loan-to-value. Which means there is a small deposit.
As a borrower, you may be required to pay the fees for this insurance, but it may be included in your loan payments, so not something you pay upfront.
I have partnered with another business person and we plan to buy a block of flats in a neighbouring city. What type of mortgage do we need?
On the surface initially one might say you need a buy-to-let mortgage, however, depending on the number of floors the building has, and also the flats themselves, and if there are any other spaces used for anything then being a residential space, you may need a commercial mortgage.
I think an interest only mortgage is right for me, is there anything I need to be aware of?
Interest only mortgages are good for people who need to keep their mortgage payments reduced. This could be due to affordability issues, or house prices.
You need to keep a couple of things in mind when taking out an interest only mortgage, and one is that you are not paying anything towards the principal of the loan, the loan balances does not reduce.
The other is that you may need to remortgage or sell the property in the future, and if you have not built any equity, or if your financial situation has changed, you may no longer qualify for a new mortgage. And if the property has depreciated, gone down in value, you may struggle to sell it.
I tried to buy a house 2 years ago and was rejected for a mortgage. Do you think I could try again?
Do you know why you were turned down for a mortgage in the past?
Have you changed or improved your credit and situation?
Check your credit score and see where you stand. Also, how much of a deposit do you have?
If need be, you may require a guarantor to help you get a mortgage to buy a property.
What documents do I need to get a mortgage?
Most mortgage lenders will require you show proof of income, which can be wage slips for the past three (3) months, they will also want to see bank statements. They may ask for P60’s if you have changed jobs, or receive bonuses.
If you are self-employed, a mortgage lender can request bank statements, and also SA302’s or your tax returns to verify income. They can request these for the past three (3) years. You can also show a tax account’s certificate to verify income
How fast can I be approved for a mortgage?
Getting approved for a mortgage has got faster over the years. If you have good credit and a high credit score, initially you can get a mortgage in principle sometimes within 24 hours.
Then there is a valuation on the property, and also the lender checking affordability by reviewing your wage slips and bank statements, and an income and expenditure sheet.
Can I get pre-approved for a mortgage?
Yes, and getting pre-approved, or a mortgage in principle is a wise financial move.
Not only do you know you are approved for a mortgage, you know how much of a loan you will receive, and how much you have to spend on a property.
Once you have chosen the property you wish to buy, a valuation will be done, and the final paperwork can be completed.
What is a gifted deposit?
A gifted deposit can come in a few forms, but the bottom line is that it is a deposit someone has given to you to buy a property.
The gifted deposit may be a cash amount, it can also be equity they have in their property. The equity can be in the form of selling the property for less than the market value, or someone can pledge the equity in their property (as a second charge) towards you buying a property. They are then securing your mortgage not just with the property you are buying, but also with their property.
I have been told my property failed the valuation, what does this mean and what can I do?
Usually a property failing a valuation simply means the property is not valued or worth what a seller or estate agent felt it was worth. This can affect your mortgage, as a lender is only going to lend a percentage of the property’s value.
If a property is valued at £200,000, a mortgage lender may only lend £160,000 towards the property.
If the property you are purchasing has failed the valuation, you do have options, and one option is for the seller to reduce the sale price to where it is more in line with the valuation.
You can also pay more of a deposit, or a blend of both, higher deposit, reduced sale price.
I am buying a new property and will need another mortgage, but I am close to retiring, can I get a new mortgage, and one that may continue on after I retire?
That is a good question and can depend on a few things, such as how much of a deposit you will have, and your current age.
If you are selling one property to buy another, and you have a large amount of equity to use as a deposit on the new property, and you can show affordability even in retirement, it should not be a problem.
A few years ago mortgage lenders changed their views and lending criteria to older and more seasoned borrowers, however, there are some types of mortgages that lenders will not grant past a certain age.
Can I get a mortgage if I am not from the UK?
Yes, as long as you reside in the UK, and for most lenders the property you wish to purchase is in the UK, it is not a problem.
If you wish to obtain a mortgage on a property outside the UK, you may need to speak to a mortgage lender in that specific country.
If you are a non-UK and a non-EU then you may need to show you have resided in the UK for two (2) years prior to applying for a mortgage.