At its core, a mortgage is a type of loan specifically used to purchase a property. When you take out a mortgage, you are borrowing money from a lender to buy a home or other property. The property itself serves as collateral for the loan, which means if you fail to make the agreed-upon payments, the lender has the right to take back the property through a process known as foreclosure.

What are the key components of a mortgage?

Principal: This is the amount of money you borrow to purchase your home. Deposit: This is the amount of money you pay upfront to buy the property. Typically, the deposit is a percentage of the property's value. The bigger the deposit, the lower the loan-to-value (LTV) ratio and repayment cost to you. Interest: Lenders charge interest as a cost of borrowing money. Your interest rate can be fixed, staying the same for the term of the loan, or variable, changing at predetermined times. Term: This is the length of time you have to repay the mortgage. Common terms are 15, 20, or 30 years. Repayment Method: In the UK, there are usually two repayment methods - capital repayment or interest only mortgages. With capital repayment mortgages, you repay a portion of the capital and interest each month. With interest only mortgages, you repay the interest each month, but are liable for the capital at the end of the mortgage term. Monthly Payment: Your monthly payment is typically a combination of principal, interest, taxes, and insurance, depending upon the type of mortgage you have taken out.

What types of mortgage are available to me?

There are several mortgage options available, each tailored to different needs: Fixed-Rate Mortgages: The interest rate is fixed for a set period, usually 2, 3, 5, or 10 years, providing stability in your repayments. Variable-Rate Mortgages: These include trackers, where the rate tracks the Bank of England's base rate, and discount mortgages, which offer a reduction on the lender's standard variable rate (SVR) for a certain length of time. Government Schemes: Programs like Help to Buy, Shared Ownership, and the recently introduced First Homes scheme can help first-time buyers and those with smaller deposits get onto the property ladder.

How can I be approved for a mortgage?

Lenders will consider several factors when assessing your mortgage application, before approving or rejecting your application: Credit Score: Your credit history is crucial in the UK, as it indicates your reliability in managing credit and making repayments. Income: Lenders will evaluate your income to ensure you can afford the mortgage repayments. Debt-to-Income Ratio (DTI): This measures your total debt against your income. A lower DTI is preferable. Deposit: This is the upfront amount you pay towards the cost of the property. A higher deposit typically secures better mortgage rates.

We Help People Like You Every Day. Giving Mortgage Advice For First-Time Buyers, Looking To Moving Home, Remortgaging, Switching To A New Rate, Even If You Have Poor Credit. Get In Touch.

At MMB Finance, we understand that every financial journey is different. Whether you're a first-time buyer eager to step onto the property ladder, moving home, seeking to remortgage, or find a better rate, we're here to guide you through the process. Our expertise also extends to assisting those with poor credit, offering solutions and support to help you secure your financial future. Get In Touch, and let's make your financial plans a reality.

MMB Finance – Your Personal Mortgage Adviser in Swindon

MMB Finance is Swindon's premier independent mortgage adviser. Whether you are stepping onto the property ladder, seeking a better mortgage deal, relocating, releasing home equity, or facing credit challenges, we are here to guide you through every step of the process. At MMB Finance, we believe in building lasting relationships through face-to-face consultations, ensuring we fully understand your needs to secure the best mortgage for you.

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Mortgage Services We Provide In Swindon

As independent mortgage advisers, we are able to provide you a full range of mortgage advice, which is objective (we are not tied to any lender), honest and based upon your financial situation. Our services include:

Mortgages for first time home buyers.

Remortgaging - switching your mortgage to a new lender for better rates.

Relocating - moving to a new home and new mortgage.

Raising capital - equity release options.

Overcoming bad credit - getting a mortgage if you have a poor credit rating.

01793 524 444

For many people in Swindon - and the rest of the UK - purchasing a home is one of the most significant financial decisions they will ever make. Understanding the basics of how mortgages work is the first step towards informed homeownership. Here is a straightforward guide to the fundamental concepts of UK mortgages.

Going beyond the basics of understanding mortgages is where MMB Finance steps in to guide you through the pitfalls of finding the right mortgage for you and applying for that mortgage.

What is a Mortgage?

A mortgage is a secured loan taken out to buy property or land. The term 'mortgage' itself comes from a French term used in British law meaning 'death pledge', but it is not as ominous as it sounds! It simply refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.

What Are Principal & Interest?

Principal: This is the amount you borrow to purchase your property and agree to pay back.

Interest: This is the charge for borrowing the principal and is typically expressed as an annual percentage of the loan.

What Are Mortgage Payments?

Your mortgage payments are typically made monthly and include a portion of the principal plus interest. This repayment plan is known as amortisation. In the case of an interest-only mortgage, your monthly payment will be made up of just the interest.

Types of Mortgage

Fixed-Rate Mortgages: The interest rate stays the same throughout a set period of the mortgage term, often two to five years, which means your monthly payments are predictable.

Variable-Rate Mortgages: The interest rate can change based on the Bank of England's base rate or market forces. This category includes tracker mortgages, which track the base rate, and discount mortgages, which offer a discount on the lender's standard variable rate (SVR).

Important Mortgage Terms

Mortgage Term: This is the length of time you have to repay the mortgage. In the UK, the average mortgage term is 25 years, but it can be shorter or longer.

Repayment Mortgage: You pay the interest and part of the principal each month. At the end of the term, you'll have paid everything off and own your home outright.

Interest-Only Mortgage: You only pay the interest on the loan each month. At the end of the mortgage term, you'll still owe the original amount you borrowed and need to have plans in place to repay this.

What Is Deposit and Loan-to-Value (LTV)?

Deposit: This is the amount of money you pay upfront towards the cost of the property. The more you put down, the lower your mortgage payments can be.

LTV Ratio: This is the proportion of the property's value that you're borrowing. Mortgages are often described in terms of their LTV ratio, with lower LTV ratios typically qualifying for lower interest rates.

Some of The Mortgage Fees & Additional Costs You may Encounter

Arrangement Fee: Some lenders charge a fee for advising you and setting up the mortgage. MMB Finance does not charge for giving advice (unless it is a particularly complex case and fees have been agreed in advance).

Valuation Fee: This covers the lender's cost of assessing the value of your property.

Legal Fees: You'll need a solicitor or licensed conveyancer to carry out the legal work when buying a property.

Stamp Duty: This is a government tax paid on homes costing more than a certain amount.

Mortgage Advice & Support In Swindon

At MMB Finance, we provide comprehensive mortgage advice to our clients in Swindon and the surrounding area, helping you navigate through the myriad of options available. We are dedicated to finding a mortgage deal which fits your personal circumstances and financial goals.

With face-to-face meetings, we ensure that we understand your situation in-depth, providing you with tailored advice and support every step of the way. We are here to make the process of getting a mortgage for the first-time homebuyer as clear and straightforward as possible.

01793 524 444

Remortgaging is the process of switching your existing mortgage to a new deal, either with your current lender or a different one. In the UK, there are several strategic times when you might consider remortgaging, which can offer financial benefits or adapt to changes in your circumstances. We can help guide you through the process.

When to Consider Remortgaging

End of an Initial Deal: Most mortgages come with an introductory offer period, typically 2 to 5 years, where you may benefit from a lower fixed or tracker rate. As this period comes to an end, you'll usually be switched to your lender's standard variable rate (SVR), which is often higher. This is an ideal time to look for a new mortgage deal to avoid paying more than necessary.

Equity Growth: If the value of your property has risen significantly since you took out your mortgage, you may have more equity in your home. This can put you in a lower loan-to-value (LTV) bracket, potentially qualifying you for lower interest rates.

Change in Financial Circumstances: If your financial situation has improved - perhaps through a higher salary or coming into money - you might want to remortgage to a deal that allows overpayments, enabling you to pay off your mortgage sooner. Conversely, if you need to lower your monthly payments due to a change in circumstances, remortgaging can also offer a solution.

Interest Rate Fluctuations: If interest rates are predicted to rise, securing a fixed-rate mortgage can lock in a lower rate for the future. Conversely, if rates have fallen since you took out your mortgage, switching to a deal with a lower rate could reduce your monthly payments.

Debt Consolidation: Some people choose to remortgage to release equity from their property to pay off debts. While this can simplify your finances by consolidating your debt into one payment, it is important to carefully consider the long-term implications, as it could mean paying more over time due to the extended repayment period of a mortgage.

The Benefits of Remortgaging

Reduced Interest Rates: One of the primary reasons homeowners choose to switch their mortgage is to secure a lower interest rate. A reduced rate can significantly decrease your monthly repayments, saving you money over the term of your mortgage.

Better Mortgage Terms: Remortgaging can also allow you to find a mortgage product with more favorable terms, such as more flexible repayment options, the ability to make overpayments without penalties, or a more suitable mortgage term that aligns with your financial goals.

Fixed Monthly Payments: Switching to a fixed-rate mortgage can provide the security of knowing exactly what your payments will be for a set period, which is particularly beneficial in a fluctuating interest rate environment.

The Benefits of Remortgaging

How We Simplify The Remortgaging Process For You

At MMB Finance, we understand that remortgaging can seem like a complex and daunting process. Our goal is to demystify it, providing a streamlined and stress-free experience for our clients in Swindon and across the UK. Here’s how we simplify the remortgaging process:

Personalised Advice: Our approach begins with a personal consultation. We sit down with you to understand your financial situation, your property's value, and your future goals. This allows us to give tailored advice and find a remortgage solution that aligns with your needs.

Market Comparison: We conduct thorough market research, comparing rates from a wide range of lenders. Our aim is to find you a competitive deal that offers the best value, whether it's with your current lender or a new one.

Clear Communication: We break down the jargon, explaining the terms and conditions of potential new mortgage deals in plain English. Our advisors keep you informed at every stage, ensuring you understand the implications of your choices.

Efficient Processing: Our team manages the paperwork and liaises with lenders on your behalf. We streamline the application process, using our expertise to avoid common pitfalls that can cause delays.

Cost Assessment: We provide a clear breakdown of the costs involved in remortgaging, including any fees and potential savings. This ensures you have a complete picture of the financial impact of switching your mortgage.

Legal Liaison: If necessary, we can recommend trusted solicitors who specialise in conveyancing for remortgaging, and we'll coordinate with them to ensure the legal side is handled smoothly.

Ongoing Support: From the initial assessment to the completion of your remortgage, we offer continuous support. Our advisors are always available to answer your questions and provide guidance throughout the entire process.

By choosing MMB Finance for your remortgaging, you benefit from our commitment to making the process as transparent and straightforward as possible. We take pride in our ability to cut through the complexity and provide a service that is both efficient and personal. Let us help you navigate the remortgaging process with ease and confidence, securing a deal that is right for you.

01793 524 444

Moving to a new home in Swindon can be a thrilling new chapter in your life. Whether it's for a growing family, a new job, or just a change of scenery, Swindon offers a dynamic living environment. However, one of the key considerations when relocating is your mortgage. Transitioning your mortgage smoothly is crucial to ensure that your move is as stress-free as possible. Here's what you need to know:

Understanding the Swindon Property Market

Before moving house, you must have a good understanding of the environment to which you will be moving. This includes the local services, shops and amenities, transport links and distances to places which are key to you, local schools, and the nature of the local community. We are able to help advise you with this, together with the financial aspects of a move to the Swindon area, thanks to our deeply rooted knowledge and experience of the region.

Understanding the Swindon Property Market

Before you think of packing your first box, take a close look at your current mortgage. Can it be transferred to your new property, or is it more beneficial to find a new mortgage deal? This is known as 'porting' your mortgage, and while many mortgages are portable, it is not always the best financial move. The decision to port your mortgage will depend on the terms of your existing deal, interest rates, and the potential for savings.

Understanding The Mortgage Porting Process

Porting a mortgage allows you to apply your current mortgage deal to a new property, avoiding early repayment charges, which can come with exiting a mortgage prematurely. However, it is not automatic. You will still need to reapply for a mortgage and go through the lender's affordability checks, as if you were applying for a new mortgage. We will support you through this process.

Considering Additional Borrowing

If your new home in Swindon is more expensive than your current property, you may need to borrow more. This could affect your interest rate and the terms of your mortgage. It is important to consider whether your lender will allow you to borrow more and what the new repayment terms will look like.

The Impact of Downsizing

If you are downsizing, you might be in a position to reduce your mortgage or even buy outright. However, if your current mortgage has early repayment charges, it could be costly to pay off your mortgage early. It is essential to weigh these charges against the potential interest savings of a smaller mortgage.

Timing Your Move

Coordinating the sale of your existing property and the purchase of your new home in Swindon can be tricky. You will want to avoid a situation where you are paying two mortgages at once. Planning the timing of your move and the transition of your mortgage is critical.

Legal & Valuation Fees

Even if you are porting your mortgage, there may be valuation fees and legal costs involved in the process. Some lenders offer deals with free valuations or legal work, which can be a factor in deciding whether to stay with your current lender or switch to a new one.

How MMB Finance Supports You Move House & Mortgage

Understanding Your Needs: We start by understanding your specific needs. Are you upsizing, downsizing, or relocating for work? Each scenario comes with its own set of challenges and opportunities, and our mortgage advice is customized to address them.

Flexible Mortgages: We explore flexible mortgage solutions which can adapt to your situation. Whether you need a mortgage that allows for overpayments or one that can be easily ported, if you move again, we find the right mortgage for you.

Market Analysis: We compare the market to ensure you're getting the best deal possible, whether with your current lender or a new one.

Interest Rate Assessment: We assess the interest rates available to you, considering whether a fixed, tracker, or offset mortgage best suits your new circumstances. Our goal is to secure you a favourable rate, which keeps your repayments manageable.

Budget Planning: Moving home involves various costs, from conveyancing fees to removal costs. We help you budget for these expenses, ensuring your move is financially viable and well-planned.

Seamless Coordination: We manage the application process, liaise with solicitors, and coordinate valuations to ensure a smooth transition.

Personalized Service: Our face-to-face meetings in Swindon allow us to understand your unique situation and tailor our services to your needs.

01793 524 444

As a homeowner, you may realise that your property is not just a home, but also a significant financial asset - an asset from which you could raise capital, if it is needed. Releasing equity from your home can be a viable option for raising capital, whether for home improvements, consolidating debts, or even funding major life events.

Understanding Home Equity

Equity is the difference between the market value of your property and the outstanding balance on your mortgage. For instance, if your home is worth £250,000 and you owe £150,000 on your mortgage, you have £100,000 in equity. Over time, as you pay down your mortgage and if the value of your property increases, your equity typically grows.

How To Raise Capital By Releasing Equity

There are two main ways to raise capital from your home:

Remortgaging For A Higher Amount

This involves switching your current mortgage for a larger one. If you have a good amount of equity and meet the lender's criteria, you can remortgage for a higher amount than you currently owe, receiving the difference in cash.

It is important to consider that this option increases the size of your mortgage and potentially your monthly repayments. We conduct thorough market research, comparing rates from a wide range of lenders, giving you our advice for which mortgage is likely to best suit your circumstances. Our aim is to find you a competitive deal that offers the best value, whether it's with your current lender or a new one.

Lifetime Mortgage (Equity Release)

Suitable for older homeowners, typically over the age of 55, a lifetime mortgage allows you to release a portion of your home's value while retaining ownership.

You can choose to make repayments or let the interest roll-up, with the loan and any accrued interest being repaid when you die or move into long-term care.

It is crucial to understand that equity release will reduce the value of your estate and can affect your entitlement to means-tested benefits.

Things To Consider Before Trying To Raise Capital

Interest Rates: Compare the interest rates and terms available to ensure they are favorable and fit your financial situation.

Repayment Strategy: Have a clear plan for repaying the additional borrowing, especially if you opt for remortgaging.

Future Plans: Consider how releasing equity now will affect your future financial plans, including retirement.

Professional Advice: Seek advice from a qualified financial advisor, such as MMB Finance, to understand the implications fully and to find the best option for your circumstances.

How MMB Finance Can Help You Raise Capital

At MMB Finance, we specialise in providing expert financial advice on equity release and remortgaging. We offer:

Personalized Consultations: We assess your individual situation, including the amount of equity in your home and your financial goals.

Market Analysis: We compare different equity release and remortgaging options, ensuring you get a deal that suits your needs.

Transparent Guidance: We explain all the terms, risks, and benefits, helping you make an informed decision.

Full Support: From initial inquiry to completion, we guide you through the process, handling paperwork and liaising with lenders on your behalf.

Releasing capital from your home is a significant financial decision. With MMB Finance, you can be confident that you are receiving knowledgeable and tailored advice, ensuring that you make the best choice for your financial future.

01793 524 444

Navigating the mortgage market with a history of poor credit can be daunting. At MMB Finance, we understand that financial difficulties can happen to anyone, and a less-than-perfect credit history should not permanently bar you from the benefits of homeownership. We specialise in providing mortgage solutions for those with challenging financial histories, helping you to overcome poor credit obstacles.

Understanding Mortgages For People With Poor Credit History

Mortgages designed for individuals with poor credit history, often referred to as subprime or adverse credit mortgages, are intended for those who might not meet the standard lending criteria due to their credit history. These mortgages might come with higher interest rates and require a larger deposit, but they provide a crucial pathway to homeownership.

Evaluating Your Credit Profile

The first step in applying for a mortgage, if you have a bad credit history is a thorough assessment of your credit report. We help you understand the specific issues affecting your credit, such as missed payments, CCJs (County Court Judgments), defaults, or past bankruptcies, and how these factors might influence lenders' decisions.

Improving Your Credit Rating

We advise you on practical steps to enhance your credit score, including timely bill payments, reducing overall debt levels, and rectifying any inaccuracies on your credit report. Incremental improvements can significantly increase your mortgage eligibility.

Selecting Appropriate Mortgage Lenders For People With A Poor Credit Rating

Our expertise lies in identifying lenders who are more amenable to applicants with poor credit. The UK has a diverse range of mortgage providers, including niche lenders who specialise in adverse credit mortgages. We match you with lenders whose criteria you are more likely to meet, giving you a better chance of obtaining a mortgage.

Considering Higher Deposits and Guarantors

Offering a larger deposit can sometimes mitigate the perceived risk of your poor credit history. Alternatively, having a guarantor can also bolster your mortgage application. We explore these options with you, to assess their feasibility.

Personalised Mortgage Solutions For Individuals With Poor Credit History

We understand that each situation is unique. Our tailored advice takes into account your specific financial circumstances and aims to find a mortgage solution that aligns with your homeownership goals.

Clear and Honest Advice

Transparency is key for us being able to provide you with sound financial advice. We ensure you fully understand the terms of any potential mortgage, including the implications of higher interest rates and any additional fees, enabling you to make an informed decision. In turn, we rely upon you to provide as much information about every aspect of your finances as possible. This way we have the best chance of finding affordable mortgage solutions for people with bad credit history.

Support Beyond Mortgages

Our commitment to you extends beyond helping you secure your mortgage. We offer ongoing advice on managing your mortgage effectively, which can help improve your credit rating over time and potentially open up more favourable borrowing options in the future.

At MMB Finance, we believe that a poor credit history should not be a permanent barrier to homeownership. Our expertise in the UK mortgage market allows us to guide you through the complexities of securing a mortgage, helping you move closer to owning your home and improving your financial stability.

01793 524 444

What Makes MMB Finance's mortgage Services Unique In Swindon?

Face-to-Face Service

Another advantage of being independent and our long experience as financial advisers is that we are able to provide you with a full range of financial services, including mortgages, second charge loans, buy-to-let mortgages, life insurance, family protection insurance, buildings and contents insurance, estate planning, will writing and personal finance planning, amongst others.

This means that we are able to advise you on your entire financial position, rather than only specific parts. This could help you save cost, in the long-term, by ensuring you have the right financial services for your circumstances.

No Fees For mortgage Advice

We charge no fees^* for our mortgage advice to you, which means our advice is effectively free!

Most mortgage advisers, such as estate agents and other businesses offering mortgages usually charge a broker's fee on top of the commission they receive from the lender. You can be assured that you will not be charged such fees by us.

^* Please note that the exception to this is where we are dealing with a complex case, when fees will be discussed and agreed in advance.

Local Knowledge & Experience

We tend to concentrate on working locally, within a 40 mile radius of Swindon (Gloucester, Cheltenham, Bristol, Bath, Cirencester, Oxford, Reading) and have strong ties to Swindon and its surrounding regions. Many of our loyal clients have been with us for over 25 years and we regularly review and update their financial plans. Our reputation is strong, as is our customer satisfaction, with many positive reviews from previous clients.

Our local knowledge brings experience of the local market and its trends. This crucial information can make a difference to the advice given to you, as local influences can be very different to national trends. Therefore, our local knowledge is used to make sure you have sound financial advice to give you the financial services which are best for you.

100% Independent mortgage Broker

MMB Finance has been a leading independent mortgage brokerage in Swindon since 1996 and has over 35 years of industry experience. Being independent means we are not tied to any bank, building society or lender of any type. Consequently, you can be assured that you will always receive objective mortgage advice, which is suited to your personal situation.

Furthermore, being an independent mortgage broker, we have access to any lender, bank or building society in the UK, which gives you access to the best possible mortgage product for your needs.

Full Range of Financial Services

In this age of online communication, all too many financial advisers never actually meet their clients to discuss the best solutions for them. At MMB Finance, we pride ourselves on working on a face-to-face basis wherever possible to discuss your finances in a friendly and relaxed way in your own home or office. Our mortgage advice is tailored to your personal circumstances and goals, so it makes sense to meet in-person so that all aspects of your finances are taken into account when advising you on your mortgage.

Frequently Asked Questions About Mortgages

Principal: This is the amount of money you borrow to purchase your home.
Deposit: This is the amount of money you pay upfront to buy the property. Typically, the deposit is a percentage of the property's value. The bigger the deposit, the lower the loan-to-value (LTV) ratio and repayment cost to you.
Interest: Lenders charge interest as a cost of borrowing money. Your interest rate can be fixed, staying the same for the term of the loan, or variable, changing at predetermined times.
Term: This is the length of time you have to repay the mortgage. Common terms are 15, 20, or 30 years.
Repayment Method: In the UK, there are usually two repayment methods - capital repayment or interest only mortgages. With capital repayment mortgages, you repay a portion of the capital and interest each month. With interest only mortgages, you repay the interest each month, but are liable for the capital at the end of the mortgage term.
Monthly Payment: Your monthly payment is typically a combination of principal, interest, taxes, and insurance, depending upon the type of mortgage you have taken out.

There are several mortgage options available, each tailored to different needs:

Fixed-Rate Mortgages: The interest rate is fixed for a set period, usually 2, 3, 5, or 10 years, providing stability in your repayments.
Variable-Rate Mortgages: These include trackers, where the rate tracks the Bank of England's base rate, and discount mortgages, which offer a reduction on the lender's standard variable rate (SVR) for a certain length of time.
Capped mortgage rates Mortgages: are a type of home loan where there is a limit, or 'cap', on how high the interest rate can go. This means that even if interest rates in the market rise, the rate on your mortgage won't go above a certain level. However, if market rates fall, your rate can go down too. This can make budgeting easier because you know your payments won't exceed the cap, but you can still benefit if rates decrease. It's a way to have some predictability in your payments while still being able to take advantage of lower rates when they occur.

Lenders will consider several factors when assessing your mortgage application, before approving or rejecting your application:

Credit Score: Your credit history is crucial in the UK, as it indicates your reliability in managing credit and making repayments.
Income: Lenders will evaluate your income to ensure you can afford the mortgage repayments.
Debt-to-Income Ratio (DTI): This measures your total debt against your income. A lower DTI is preferable.
Deposit: This is the upfront amount you pay towards the cost of the property. A higher deposit typically secures better mortgage rates.

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