Category Archives: Interest rate

How to get a handsome mortgage for buying a house

england propertyThis is a common idea to get a handsome mortgage for buying a property or home convey in your desire destination. Before you proceed, ask yourself if you really need loan for buying a house. Are you financially strong to pay a large principal amount at the very first go? When you have a better credit rating and large amount of financial deposit in your bank, you will have more options to get a handsome deal.

For the beginners there is lot to learn starting from the term ‘Mortgage’.


It is the loan that the bank/lending companies pays you for buying a home. It is one of the largest money loan in United Kingdom and it will take years to pay back the loan to the lending company. Most of the homes in UK are bought by getting a loan-package from banks or any other lending companies. Home conveys in UK come with a high expenses and not everyone are financially strong enough to pay the money back.

Mortgage lender

Are the bank or companies who will help you in lending large amount of money for buying a home. Associated with the money is the interest rate that you have to pay as per mortgage terms agreed between you and the lender.

Mortgage brokers

That is new, there are people who you can hire to help you in getting a great loan deals, known as mortgage brokers. They will help you in getting a suitable plan from the lenders or lending parties.

Principal Payment

When you get a loan, you first will be paying a large amount of money known as principal payment. Then the remaining amount of loan will be due in monthly payment including interest rate.

Size and Term

The size of the loan is the amount loaned to the buyer in a mortgage plan, however, the term means the number of years during which the loan will be due. For example, there is 15 years monthly plan, 30 years monthly plan, and many others.

Interest Rate

Each mortgage payment consists of interest that applies to the remaining principal amount of the loan. The lower the interest rate increase the monthly but also its term (time in which mortgage has to be paid) and the larger interest decrease the monthly payment but also decrease its term.

Therefore, these are the following terms that people needs to know before they opt for a mortgage plan.

What will be the optimum mortgage plan?

This depend upon your credibility rate i.e. how much you are financially strong to repay your debt. Getting a large amount of mortgage is not always a great idea. You will be paying money every month along with interest that will last for several decades. Getting a small amount of loan is also not the thing that you want. You need to know what and how much money you can afford to pay each month and for this there are few methods that can help you out.

Household income

It is great to know your gross annual income that helps you out in paying your major expenses.

Current Debts

Your previous debt payment associated with your monthly expenses

Down Payment

Payment that you can afford to decrease the interest rate on the remaining principal.

Gross Debt Service Ratio

Your mortgage expenses including principal interest, interest rate and heating costs should not pass 30% of your gross annual income.

Total debt service Ratio

Percentage of gross annual income need to pay household expenses, credit cards, personal loan, and other loans should not exceed 37%.

Your loan package will depend on these ratios and you should check first if you are willing to pay monthly mortgage fees after paying the household payment and other expenses.

Who will help you in getting it

Brokers can help you for this purpose but brokers will only be interesting in getting a mortgage from the bank or loaning party, they will not be interested in getting a better plan for you from another company that might be a better idea.

To get a better understanding in buying a mortgage package take consultation of a solicitor. Authorize lawyer who will help you in the overall home convey process. They will not only help you in property the buying and transfer of property but also will communicate with several other parties such as insurance lenders, mortgage lenders, seller’s solicitor, and the search service providers. You just need to hire a solicitor and leave the rest of the process to the qualified personal.

Experience Solicitors

It is a better idea to locate experience personal in this field. NBMlaw group are the team of experience solicitors in UK who will help you in overall process of home buying in UK. For more information, visit their website <a href=””></a>