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Mortgage finance
Mortgage finance
Before most buyers purchase a home, they must work with a lender to negotiate a mortgage finance rate. A mortgage is like any other loan and typically lasts twenty years or more divided into multiple interest rate terms.
Huntingdon,
Cambridgeshire,
United Kingdom
(prbd.net)
14/08/2010
"A lender typically provides you with 75% to 95% of the property value in the mortgage. The rest must be provided by the buyer. This is usually considered the down payment on the property."
Mortgage Finance
Before most buyers purchase a home, they must work with a lender to negotiate a mortgage finance rate. A mortgage is like any other loan and typically lasts twenty years or more divided into multiple interest rate terms.
How Much Is Financed
A lender typically provides you with 75% to 95% of the property value in the mortgage. The rest must be provided by the buyer. This is usually considered the down payment on the property.
Mortgage Finance Limitations
When you're buying a property, the mortgage finance amount is typically limited to three times your annual salary. For buyers with a good to excellent credit history, the limit may be increased to up to five times your annual salary. For couples with two streams of income, the same limits apply to the main income source; however, the yearly total of the second income source is included.
Mortgage Finance Rate
The cleaner your credit history, the lower the interest rate you'll be able to negotiate. Mortgage finance interest rates are negotiated for up to ten years at a time, which is called a term. At the end of the term, you'll be asked to refinance the mortgage with a new interest rate.
Mortgage Finance Types
To finance a mortgage, you must choose a mortgage finance type. The two most common are fixed rate and variable rate. With a fixed rate mortgage, the interest rate is set for specified term. With a variable rate mortgage, the interest rate fluctuates with the economy. If possible, a capped rate mortgage is best and provides the security of a fixed rate but the benefits of a potentially lower interest rate with a variable rate mortgage.
What's Needed
To make the mortgage finance process easier, provide a full valuation of the property to the lender. Lenders may also require recent pay stubs or history as well. You can provide the lender with either a full structural survey, which is most common for older homes, or a home buyers report, which is best for newer homes.
About
Here at Buy-my-place.co.uk we buy homes in Cambridgeshire, Bedfordshire, Northamptonshire and across the UK. We pride ourselves on our ability to put your needs first.
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