Compare alternatives to Britannia mortgages
There are many different types of mortgage products aimed at different types of borrowers. Your own personal circumstances and borrowing needs will determine which is right for you.
First Time Buyer mortgages
First time buyers often struggle to get a deposit together for their first home, which is why many providers offer mortgages of up to 95% of the value of a property for aspiring homeowners. Some even offer 100% mortgages for customers who have a close relative willing to use their own home as security for a deposit.
Buy to Let mortgages
If you are interested in buying a property to rent out, you cannot do this with a standard homeowner mortgage. Instead you need to go for a buy to let mortgage specifically aimed at landlords. The amount you can borrow is likely to depend on the rentable value of the property. Often lenders will specify that the monthly rental income from the property will need to be equal to at least 125% of the monthly interest-only repayments on your mortgage.
Remortgaging with Britannia
If you don’t feel you have a particularly good deal on your current mortgage, or want to raise some extra funds by borrowing more, remortgaging can be a good option. It may allow you to get a better deal, thus bringing down your monthly payments. Alternatively, a new, larger mortgage will allow you to pay off your old one and leave extra money over for whatever you need.
Second charge mortgages
Sometimes is can be cheaper to take out a second, entirely separate secured loan on top of your existing mortgage. This is sometimes referred to as a second charge mortgage. It is most often used by people who already have a good deal on their existing mortgage, making it cheaper to borrow separately rather than remortgaging.
Loan to value ratio
Lenders generally make decisions about how much customers can borrow as a mortgage based on their loan to value (LTV) ratio. This describes the value of the loan the customer wishes to take out as a percentage of the market value of the property in question.
So, if you want to borrow £50,000 on a property worth £100,000, your loan to value ratio would be 50%. LTV also takes into account existing secured debt, so if you had a £50,000 mortgage on a £100,000 house, then wanted to borrow an extra £25,000 as a secured loan, your total LTV would be 75%.
Most lenders will tend to offer better interest rates on properties with a lower LTV.
Find the best deals on mortgage rates
Our mortgage calculator takes the stress out of finding the best deals for your mortgage. Simply put in your requirements and the calculator will match you up with the most attractive offers we have found from across the market. Head to the top of the page to try it out.
Independent Mortgage Advice
Remortgaging is particularly popular at the moment as interest rates are low.
Whether it will be a good idea for you to remortgage depends on a number of factors, including your goals and your personal circumstances.
However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.
If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).
If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice on Britannia mortgages as well as other lenders.