Tel: 07834 645304
Email: info@bvbmortgages.co.uk

Why choose BVB Mortgages

Darren Bowles has been in the property industry since 1996, formally as an Estate Agent and Senior Manager overseeing multi-branch operations. Bringing this extensive knowledge to the mortgage world has benefitted many clients financially on their entire house purchasing process.

BVB Mortgages look after all types of customers including First Time Buyers, Home Movers, Buy To Let Landlords, Commercial Customers, All aspects of Re-mortgaging, Self Builds, Key Man Protection and Lending into Retirement.

BVB Mortgages will look across a wide spectrum of lenders and insurance providers to meet all your mortgage and protection needs to ensure you get the best mortgage for YOU.

In addition we will provide a great deal of support and assistance in the following:

  • Negotiate with the Estate Agent on your behalf
  • Guide you through which valuation report to choose from and the fees associated with each mortgage provider
  • Explain the results of your valuation survey and how lender conditions may affect you
  • Liase with your solicitors to ensure a smooth overall transaction

BVB Mortgages are here for our clients throughout their mortgage lives, not only do we advise and assist you in securing your first mortgage and protection needs, we continue to guide you through the whole term by reviewing your needs at each stage, in order to ensure that you have the most appropriate protection throughout your mortgage life.

Call us now for a discussion about how bvb mortgages can help you.

Mortgages

What is a mortgage?

A mortgage is a loan which is secured to your property. This is then repaid back with interest over the agreed term set with your lender.

Types of mortgage

What's a fixed-rate mortgage?

The lender agrees to give you a short-term special rate. Regardless of what happens to interest rates, with a fixed mortgage your monthly repayments are 'fixed' for that short term.

Lenders call this the incentive period - and all fixed deals will have one, whether it's 2, 3, 5 or 10 years.

Like all mortgage deals, fixed rates have pros and cons:

  • Certainty - you know exactly what your mortgage will cost
  • Your payments won't go up over the life of the fix, no matter how high rates go
  • You'll know EXACTLY what you'll pay, meaning you can budget around it
  • Starting rates are usually higher than on variable products
  • If interest rates fall, you won't see your payments drop
  • If you want to get out early, you'll usually pay high penalties

If a fixed rate mortgage sounds good, think carefully about how long you want this to be fixed for.

Variable mortgages

What is a variable rate mortgage?

As the name suggests, a variable rate means that your rate of monthly payment may increase or decrease. The major, but not sole cause of this, is changes to the UK economy.

In times of growth and inflation, interest rates tend to go up to discourage spending. This is to make saving more attractive and borrowing costlier - meaning people are less likely to borrow to spend. In downturns, interest rates are often cut to encourage spending.

Mortgages that vary in rate are most commonly known as 'standard variable', 'discount' and/or 'tracker'

Tracker mortgages

The rate usually tracks the Bank of England base rate. This doesn't mean it's the same as the base rate, just that it moves in line with it. Trackers are popular, especially in times of low or falling interest rates, but there are some pros as well as cons:

  • It's transparent as you've the certainty that only the BBR changing up or down will affect your monthly rate and payments
  • Uncertainty - if rates rise, so will yours
  • You may be locked into a short term period where there would be an early repayment charge should you
    repay all the mortgage

While the base rate is low (0.5% at the time of writing), the tracker rates usually tracks above it. For example, you might see a deal at 3.14% (2.64% + base rate). If the base rate increases one percentage point, so does your monthly payment amount. If it falls by that, again so does your monthly payment.

Standard variable rate mortgages (SVRs)

Each lender has an SVR that they can move when they like. In reality, this tends to roughly follow the Bank of England's base rate movements. SVRs can be anything from two to five or more percentage points above the base rate, and they can vary massively between lenders.

  • They can be cheap in some circumstances
  • If interest rates are cut, your rate will likely drop too
  • There is usually no early repayment charge meaning the mortgage can be paid back in full at any point without penalty
  • Uncertainty - there's no guarantee you'll get the full benefit of all rate changes, as you're at the mercy of lenders
    hiking rates at their will

Discount rate mortgages

These deals usually offer a discount off a lender's standard variable rate (SVR). Most of the discounts on offer tend to last for a relatively short period - typically two or three years but, there are lenders offering longer or even lifetime options.

Always be careful when you are reading the marketing materials as how they are described can often be confusing. For example, 'a 2% discount'. Is this 2% off its SVR of 5%, ie, 3%? Or does this mean the rate you pay is 2%? Check carefully what you'll pay..

  • In the past, this was often the cheapest rate type
  • If interest rates are cut, your rate will probably drop too
  • Uncertainty - there's no guarantee your lender will move its SVR down if the Bank of England base rate goes down. So you might not get the full benefit of all rate changes
  • You're at the mercy of lenders hiking SVRs at their will, which directly affects your rate

Remember that because lenders' SVRs can vary, it's not the size of the discount that counts, but the underlying rate you pay. ALWAYS examine the entire rate.

The loan is secured against your home so if for any reason you are unable to repay it, the bank or building society can sell your home to get its money back.

Protection needs

BVB Mortgages deal with a panel of quality insurance providers so we can balance shopping around for the right price, whilst making sure you have products of the best quality.

Buying a home is one of life's biggest financial commitments. It is important for us to know you have 'All round peace of mind' that is affordable.

We give advice on:

  • Life Insurance
  • Critical Illness Cover
  • Income Protection
  • Buildings and Contents Insurance
  • Business Protection
  • Key Person Insurance
  • Landlord Insurance

We will help you understand what each type of insurance does, help you decide which is right for you and then work within your budget to get you the best quality cover at the best price.

Contact us

Let us know what you would like to talk about. Just click one of the options below, then simply fill out this quick and easy short form and we will call you back.

BVB Mortgages
20 Kingfisher Grove
Wincham
Cheshire
CW9 6PZ

E: info@bvbmortgages.co.uk

T: 07834 645304

Please tick: Mortgages   Self employed   First time buyer   Remortgage   Protection insurance 
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