Due to current market conditions there are currently no 100% mortgage rates available, however with a small deposit just 5% there are many mortgages available to the first time buyer.
Many lenders will also include a Higher Lending Charge (HLC). This is an amount paid by you but is in fact insurance for the lender that insures the lender against you defaulting on your mortgage but offers you no protection whatsoever. This additional fee can however be added to your mortgage loan but of course you will be paying interest on this amount should you decide to add this fee to the loan amount.
As a general rule if you are borrowing the maximum, it is advisable to look at fixed or capped interest rate mortgages, since these offer you valuable protection against rising interest rates.
After the initial interest rate period ends the mortgage rate will normally revert to the lenders standard variable rate (SVR). Should you have taken the mortgage out through Grovelawn Financial we would then contact you the customer 2 - 3 months before the end of the promotional interest rate period to then see what is best for you and what your current circumstances may demand. The choice of mortgage products could be much wider at this stage if the value of your property has increased and if this were the case the loan to value (LTV) would be less than 95% because there would now be more equity held in the property.
The decision would then be to look at your existing lenders product options in addition to other lenders that would now be suitable and then calculate what will be the best solution for you.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
This site is intended for UK residents only. The overall cost for mortgages for comparison is % APR.
The actual rate will depend on your circumstances. APR variable and based on a usual case.
Grovelawn Financial is a trading name of Grovelawn Limited, which is authorised and regulated by the Financial Services Authority.
Grovelawn Limited is Registered in England & Wales number 5030300. Registered Address: 98 Station Road, Sidcup, Kent, DA15 7BY.
Entered on the Financial Services Authority's Register — Register Number: 314204 — Consumer Credit Licence Number: 573287
The Financial Services Authority (FSA) do not regulate some types of buy to let, commercial, overseas mortgages, tax advice and credit or loans not secured on property.