Compare Sainsburys Mortgage Rates
Our Mortgage Service - helping you make the right decision
Special features of what we offer include:
- Whole of market service -
- Access to leading market mortgage rates
- Access to exclusive loan deals not available on high street
- Fast turnaround - speak to us today if you need to move quickly
- We have lenders who will take into account previous defaults and missed payments.
- Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions
To investigate your mortgage options call our mortgage team on 0117 313 7780 or fill in our call back form.
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
As your mortgage is such an important transaction, good advice is imperative.
"We know that the internet is the first port of call for many people when looking for mortgage solutions; our view is, yes use the internet to do your own research , but then bring it to us and we’ll let you know how your findings compare and then give you the information and advice you need - so that you can make the right decision for your future.” Adam Arnott, Head of Mortgages & Protection
As of 2017 Sainsbury’s Bank will offer mortgage products to UK borrowers. However, Whether you are looking for a residential mortgage to buy your first home or move, looking for finance to buy a second home, or perhaps looking for a buy to let mortgage for investment property it is wise to first shop around a variety of different lenders before taking out a mortgage, to try and find the best deal on a product that fits your specific needs.
Finding a mortgage
Exactly what mortgage products are available to a borrower will be dependent on both what they are looking for as well as their financial details such as the size of deposit they have and their credit history.
Lenders generally require borrowers to place a deposit on the mortgage, the ratio between how much of a property’s value has been paid for by the borrower's deposit and the mortgage loan is referred to as the mortgage ‘Loan to Value’ (LTV). Mortgages come with different LTV bands and mortgages with lower LTVs tend to offer better interest rates than comparable mortgages with higher LTVs. This means for example for a property worth £100,000 on a 95% LTV mortgage the borrower would need to put down at least £5,000 as a deposit to make up the remaining value of the property. Residential mortgages tend be available with smaller deposits than buy to let products.
Lender’s carry out affordability checks upon mortgage applicants in order to assess if they will be able to afford to keep up with their mortgage payments. To do so they will assess the combined income of all the applicants for the mortgage compared to the amount they wish to borrow. But they will also factor in to the calculation other considerations such as the borrower’s credit score, existing credit commitments, dependants and any other regular outgoings. They will also ‘stress test’ the calculation to see if the borrower would still be able to afford their monthly mortgage payments if its interest rates were to rise.
Types of mortgage repayment
Mortgages can be placed into three categories based upon how the debt balance is repaid.
- Capital and Interest Repayment – With this type of mortgage the monthly mortgage payments repay the interest accumulation on the debt as well as a portion of the original sum borrowed, so by the end of the mortgage’s full term the borrower will have completely repaid the loan.
- Interest-only – With an interest only payment option the borrower’s monthly payments only cover the interest accumulation on the loan. This means that at the end of the mortgage’s full term the borrower is required to repay the original amount they borrowed in full. As such lenders usually have more rigorous lending criteria, requiring borrowers to be higher earners than would be necessary for a capital repayment option. They may also require the borrower to provide them with a detailed savings or investment plan to illustrate how the borrower intends to raise the required capital to repay the mortgage balance at the end of the mortgage term.
- Part and Part Mortgage – Part and Part mortgages essentially combine the two above payment options; over the course of the mortgage the monthly payments will repay a portion of the original debt as well as all of the interest accumulation. This means that at the end of the mortgage there is still a portion of the property that has an outstanding debt upon it that must be repaid in full at that point, but this amount is smaller than there would be with a full interest-only mortgage, as part of the property has had its debt repaid already from the monthly mortgage payments.
Whether interested in a residential or buy to let mortgage, an individual may benefit from using the services of an independent mortgage adviser; advisers that offer a whole of market service can use their professional knowledge of the industry to search across lenders to try and find the right deal for their clients, as well as offering them impartial advice.
To find out if Fair Mortgages could help you, fill in the contact form on this page to request a call-back or call directly on: 0117 313 7780