Mortgages
Veterinary Finances has access to a wide range of lenders as well as some exclusive mortgage products you may not find anywhere else on the market (including going direct to a lender).
Helping you to buy or remortgage your home is important to us and we endeavour to always get you the best deal for your individual circumstances.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY LOAN SECURED AGAINST IT.
A step-by-step guide to
getting a mortgage
Click on each step for more information
Step 1: Discuss your requirements with us
Step 2: Gather documents and send to us
Step 3: Give consent for Decision in Principle
Step 5: Instruct solicitors for your mortgage
Step 7: Lender assesses your application
Step 9: Lender makes an offer
Step 11: Discuss protection needs
Step 4: Receive mortgage recommendation
Step 6: We submit your application to a lender
Step 8: Lender values the property
Step 10: Solicitor carries out legal work
Step 12: Mortgage completes
Types of Mortgage
Fixed Rate
The interest rate and monthly payment stay the same every month for the duration of your mortgage deal, which is typically fixed for between 2 and 10 years. At the end of your product term, if you do nothing, you will move onto the lender's Standard Variable Rate (SVR). Fixed rates are good if you want stability in payments without any surprises when it comes to budgeting.
Tracker Rate
The interest rate is linked to the Bank of England Base Rate so payments can vary throughout the product term. A tracker rate may be suitable for you if you're happy to take a risk with your monthly payments or need to make large overpayments to your mortgage as some tracker rates will allow for unlimited overpayments without penalty.
Standard Variable Rate (SVR)
This is the lender's variable rate that you would move onto once your fixed rate or tracker rate mortgage comes to an end. Lenders can change the interest rate whenever they like and there are very few occasions when being on the SVR is advisable.
Discounted Variable Rate
This is a variable rate set at a defined level below the lender's Standard Variable Rate for a defined period. So this rate can still go up or down based on movements to the lender's Standard Variable Rate.
Offset Rate
With an offset mortgage, the amount of interest you pay is based on the mortgage balance minus any savings you hold in a linked savings account. So if you took out a £150,000 mortgage but had £50,000 in a linked savings account, you would only pay interest on £100,000.
Payment Types
Capital Repayment
A capital repayment mortgage is one where each month you are paying off some of the amount you borrowed (capital) and some of the interest on the amount you borrowed. At the end of the mortgage term, you will own your property outright. This option is suitable for people who do not like risk and want to know their mortgage is fully paid off at the end of the term.
Interest Only
An interest only mortgage is one where each month you are only paying the interest on the amount you borrowed. At the end of the mortgage term you will still owe the original sum that you borrowed. This is a high risk option and is only suitable for those who have a suitable repayment strategy in place to repay the capital borrowed at the end of the mortgage term. Lenders assess the suitability of the repayment strategy (and we do not advise on their suitability) but these often include: sale of the mortgaged property; sale of a second property; a portfolio of stocks and shares with an equivalent (or higher) value than the sum borrowed; savings equivalent to the amount borrowed.
Part and Part
A part and part mortgage is where some of your mortgage is on a capital repayment basis and some of your mortgage is on an interest only basis. This is still a relatively high risk option and you will need a suitable repayment strategy in place to repay the capital borrowed on the interest only part at the end of the mortgage term.
Fees and Costs
Broker Fee
We don't charge a penny for our advice to anyone who is involved in the veterinary sector (just one of you needs to be if it's a joint application).
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For everyone else, we charge up to £299 on full application to the mortgage lender. This is non-refundable.
Survey Fee
When buying a property, it is advisable to have a survey carried out on it to check on its condition and to pick up on any potential issues. This is separate to the mortgage valuation fee and can be arranged independently by you. The Tier 2 survey is the mid-level report (previously Homebuyer's Report) or you can opt for a Tier 3 survey (previously Full Building Survey).
Mortgage Product Fee
Some mortgage products will have a 'booking fee' or an 'arrangement fee' which is essentially a fee for securing a particular interest rate. This can either be paid upfront or added to the mortgage (subject to affordability). If you add this fee to the mortgage then you will pay interest on the fee for the duration of the mortgage term.
Mortgage Valuation Fee
Some lenders will charge a fee to value the property you are buying or remortgaging. This varies from lender to lender but typically ranges from £0-£500. This is a basic valuation for mortgage purposes and is for the lender's benefit. It isn't a survey that will comment on the condition of the property.
Legal Fees
Whenever you buy or remortgage a property, then solicitors need to get involved. When buying a property, the solicitor will need to carry out searches on the property and make enquiries with the vendor's solicitor, as well as register your property with the Land Registry. With a remortgage, it's a lot more straightforward, so the costs are lower.
Stamp Duty Land Tax
You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland. The tax is different if the property or land is in Scotland (Land and Buildings Transaction Tax) or Wales (Land Transaction Tax). Your solicitor will confirm how much is payable.
Moving Costs
If you're moving home, it stands to reason that you will have furniture and other contents that you want to take with you. Some people may be able to do this themselves (possibly with the help of friends/family). Others will need to hire a professional firm to do this for them.
Buildings Insurance
Buildings insurance is a condition of having a mortgage. The cost of this will depend on the type of property you're buying, where it's located, local crime rates, the type of locks on the windows and doors, amongst other factors. We would recommend having buildings insurance in place from exchange of contracts.
Protection
We would strongly recommend having insurance (protection) in place so that if you are unable to work due to accident, sickness or injury. We would also recommend having insurance in place to clear the mortgage in the event of you contracting a critical illness or passing away. You should consider setting aside a protection budget when buying a property.