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Our Services
Residential Mortgages
At Your Best Interests, we understand that taking out a residential mortgage can be a complex and overwhelming process. That's why we're dedicated to providing you with expert guidance and support every step of the way.
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So, what exactly is a residential mortgage? Simply put, it's a loan that you can use to purchase a property that will be your primary residence. It's important to note that to be eligible for a residential mortgage, the property must be occupied by you or a family member and cannot be let out to tenants or used for commercial purposes.
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At Your Best Interests, our primary goal is to help you secure the best possible mortgage deal that's tailored to your individual needs. We have strong relationships with a wide range of lenders, including banks, building societies, and specialist mortgage providers, which means that we can offer you access to the widest possible range of mortgage products.
Our team of expert advisors will take the time to understand your unique circumstances and financial situation, so that we can provide you with personalized advice and guidance that's tailored to your needs. We'll help you compare different mortgage products, understand the terms and conditions, and provide you with support throughout the entire application process.
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In summary, at Your Best Interests, we're committed to providing you with the best possible mortgage deal for your individual needs. With our expert guidance and support, you can navigate the complex world of residential mortgages with confidence and ease.
How does the bank decide what I can borrow?
The mortgage granted on a residential basis is determined by a variety of factors including some of the following
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The amount of income you receive vs the number of financial commitments you have.
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​How close to retirement age you are.
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How many dependants you have.
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How well you have been managing your commitments over the last few years.
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The value of the property. and more
What happens if I cannot repay?
The mortgage will be secured against your property, should you not be able to maintain payments the lender has the right to repossess your property.This is why there are careful steps in place to protect you from borrowing over your budget.
How long can I have a mortgage?
The length of the mortgage can go up to 40 years but this depends on how close to retirement you are. Some lenders can lend into your retirement, subject to your projected pension income and other factors.
What’s the minimum deposit required?
Currently there are lenders offering 95% mortgages so you would only need a 5% Deposit.It is important to note that Interest rates are higher the lower the deposit you provide, so the more deposit you can put down generally the better the interest rate.
Buy to Let Mortgages
A buy to let mortgage is a type of mortgage that allows you to purchase a property with the intention of renting it out. Unlike residential mortgages, most buy to let mortgages in the UK are not regulated by the FCA as they are considered an investment product.
It is important to note that you cannot live in a property financed by a buy to let mortgage & must use it for letting purposes only. At your best interests we provide expert guidance on buy to let mortgages, helping you navigate the complex landscape of investment property finance and make informed decisions about your future. Let us help you unlock your potential as a property investor today.
How does the bank decide how much I can borrow?
When you apply for a buy to let mortgage, the lender will typically send a valuer to the property to assess how much rent they believe the property could generate. The rental income will be a key factor in determining how much you can borrow, as lenders will want to ensure that the rental income is sufficient to cover the mortgage repayments.
Each lender will have their own stress test that they carry out to assess how much you could borrow based on the rent. This stress test will typically take into account factors such as interest rates, void periods, and maintenance costs, and will determine how much the lender is willing to lend you based on the rental income.
It's worth noting that the maximum loan to value (LTV) with a buy to let mortgage is typically 85%, but in order to qualify for this maximum LTV, the rental income would need to be significantly high. In reality, most common LTVs for a buy to let mortgage are around 75%.
At Your Best Interests, our specialist advisors can help you find the right lender who can provide you with the maximum loan amount at the best possible rate. We have access to a wide range of lenders and can help you navigate the complex world of buy to let mortgages with confidence and ease.
In summary, the bank will typically determine how much you can borrow with a buy to let mortgage based on the rental income generated by the property. With our expert guidance and support, you can find the right lender and secure the best possible deal for your individual needs.
What is a stress test?
A stress test for a buy to let mortgage is a financial assessment carried out by a lender to determine whether you can afford their mortgage repayments, based on a range of potential scenarios.
During a stress test, the lender will typically analyse the rental income generated by the property, as well as your income, expenses, and debts, to determine if you would be able to make their mortgage payments even if there were changes in rental income, interest rates, or other financial circumstances.
For example, the lender may consider the impact of a potential void period (where the property is unoccupied and not generating rental income), or the impact of changes in interest rates on your ability to make repayments.
The purpose of a stress test for a buy to let mortgage is to ensure that you can afford the mortgage repayments, even in challenging circumstances. This protects both you and the lender from financial risks and helps ensure that you don’t take on more debt than you can handle.
Overall, a stress test is an important part of the application process for a buy to let mortgage, as it helps determine the maximum amount that a lender is willing to lend to you based on your ability to make repayments in different scenarios.
Who can I rent the property out to?
Most lenders would prefer you let out to standard tenants on normal AST's. However some specialist lenders do approve HMO (Houses of multiple occupation) tenancies as well, which includes letting out to students and DSS tenants.
What happens if I cannot repay?
The mortgage will be secured against your property, should you not be able to maintain payments the lender has the right to repossess your property.
How long can I have a mortgage?
The length of the mortgage can go up to 40 years and some buy to let lenders will lend past your 100th birthday.
What is the minimum deposit required?
The absolute minimum is 15% however the property will need to have a very high rental yield to pass for this amount. Traditionally it is best to have a 25% deposit for buy to let property transactions.
Insurance & Protection
When taking out a mortgage, its essential to consider the different types of insurance that can protect you and your investment. At Your Best Interests, we recommend several key types of insurance, including life insurance, serious illness cover and income protection. These policies can provide financial security for you and your family, ensuring that you are prepared for any eventuality. Let us help you find the right insurance solutions to protect you best interests & secure your financial future.
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Life Insurance
Life insurance is a type of insurance policy that provides financial protection for your loved ones in the tragic event of your death. It's an important way to ensure that your family is taken care of and has financial security, even after you're gone.
There are several reasons why life insurance is important. Firstly, it can help cover the costs of funeral expenses and other end-of-life expenses, which can be a significant financial burden for your loved ones. Additionally, life insurance can help replace lost income and provide for your family's ongoing financial needs, such as mortgage payments or children's education expenses.
Furthermore, life insurance can provide peace of mind, knowing that your loved ones will be financially secure and taken care of, even if you're not there to provide for them.
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Serious illness Cover
Serious illness cover is a type of insurance that provides financial security in the event that you are diagnosed with a critical illness. It can offer you peace of mind, knowing that you will be able to pay for the treatment, rehabilitation and recovery costs that often arise from a serious medical condition.
Having serious illness cover in place means that you won't have to worry about the financial implications of taking time off work to recover, as it can provide a source of income while you're unable to work. Additionally, it can also help with day-to-day expenses such as rent or mortgage payments, and other household bills.
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Income Protection Cover
Income protection cover is an insurance policy that provides financial support if you are unable to work due to illness or injury. It offers a regular income to cover your living expenses and provides long-term protection until you are able to return to work or reach retirement age. Income protection covers a wide range of illnesses and injuries, including back pain, stress, depression, and cancer, depending on the policy terms and conditions. The payments you receive from an income protection policy are usually tax-free, making it a cost-effective way to protect your income. Additionally, income protection cover comes with flexible policy options to suit your individual needs.
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Building Insurance
Building insurance, also known as home insurance, is a type of insurance policy that provides financial protection for the physical structure of your home, including the roof, walls, floors, and other permanent fixtures. One of the main benefits of building insurance is that it provides financial protection against damage caused by a range of events, such as fire, flood, and storm damage. This can give you peace of mind that your investment is protected against unforeseen circumstances.
In the UK, building insurance is a mandatory requirement when mortgaging a property. Lenders require borrowers to have a building insurance policy in place to protect their investment in the event of damage to the property. This means that having building insurance is not only beneficial for you as a homeowner, but it is also a requirement when taking out a mortgage.
How can Your Best interests help?
At Your Best Interests, we are committed to helping you find the right insurance policies to meet your individual needs. We work with a variety of reputable insurance providers to offer you a range of options at competitive rates. Our experienced advisors can help you understand the benefits of each policy and help you choose the ones that best suit your individual needs.
We take pride in offering a personalized service, taking the time to understand your situation and requirements to provide you with the right advice and support. We believe in transparency and will explain the policy details in a way that's easy to understand.
Overall, having life cover, serious illness cover, income protection & building insurance cover can provide financial security and peace of mind for you and your loved ones. At Your Best Interests, we're here to help you find the right policies to provide this protection.
Remortgages & Second Charges
A remortgage is the process of switching your existing mortgage to a new lender, either to save money on monthly payments, to release equity in your property, or to switch to a more suitable mortgage deal.
There are several reasons why homeowners may consider remortgaging. For example, they may want to secure a lower interest rate, consolidate debts, raise additional funds, or switch to a more flexible mortgage product.
At Your Best Interests our goal is to help you whatever your needs, be it to save money, release equity, or find a more suitable mortgage deal to fit your changing circumstances. With our help, you can make an informed decision and achieve your financial goals.
Will the banks need to do a full assessment on me when I Remortgage?
In short yes, when you remortgage, whether with a new lender or staying with your current lender, the lender will need to assess your financial situation, credit status, and property value to determine your affordability and how much you could borrow. This is to ensure that you can comfortably afford the new mortgage payments and that the property provides sufficient security for the loan.
We will help you prepare for the assessment process and ensure that you have all the necessary documentation in place.
Can I ask for a bigger mortgage when I Remortgage?
Yes, when you remortgage, you have the opportunity to apply for a bigger mortgage if you wish to do so. This means that you could potentially release equity in your property and increase your borrowing amount.
However, whether you are eligible for a bigger mortgage will depend on your personal circumstances and affordability. The lender will assess your income, expenses, credit score, and property value to determine how much you can afford to borrow. If your circumstances have improved since you took out your original mortgage, such as an increase in income or a rise in property value, then you may be able to access a larger mortgage.
Benefits of remortgaging
Remortgaging can offer a range of benefits, including:
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Lower Monthly Payments
By remortgaging to a new deal with a lower interest rate, you could potentially reduce your monthly mortgage payments, freeing up more cash for other expenses or savings.
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Access to Better Mortgage Deals
If your current mortgage deal is coming to an end, you may be able to find a better deal elsewhere, with more competitive interest rates, better terms, or additional features such as overpayments or cashback.
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Releasing Equity
If you've built up equity in your home, you could potentially release this through a remortgage, allowing you to access cash for home improvements, debt consolidation, or other purposes.
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Consolidating Debt
Remortgaging can also be a way to consolidate other debts, such as credit card balances or personal loans, into your mortgage, which may offer a lower interest rate and reduce your overall monthly payments.
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Changing Mortgage Type
Remortgaging can also allow you to switch from a variable rate mortgage to a fixed rate, or vice versa, depending on your preference and financial circumstances.
What is a second charge?
A second charge is a type of secured loan that is taken out against a property that already has a mortgage on it. It allows homeowners to borrow additional funds using the equity in their property as collateral, without having to remortgage or change their existing mortgage deal.
The second charge is a separate legal charge on the property, with the lender having the right to repossess the property if the borrower defaults on their repayments. The loan is typically used for large expenses such as home improvements, debt consolidation, or to finance a major purchase.
The amount that can be borrowed with a second charge loan depends on the amount of equity in the property, as well as the your income, credit history, and other financial circumstances. It's important to note that taking out a second charge loan will increase the overall debt secured against the property, and will result in higher monthly payments.
What is the difference between a Remortgage and a second charge?
A remortgage and a second charge are two different ways of borrowing against the equity in a property.
A remortgage involves paying off the existing mortgage and taking out a new mortgage with either the same or a different lender. This is often done to take advantage of better interest rates or to release equity from the property. With a remortgage, the borrower essentially replaces their existing mortgage with a new one.
On the other hand, a second charge loan involves taking out an additional loan against the equity in the property, while keeping the existing mortgage in place. The second charge loan is secured against the property, just like the original mortgage, and you will make separate payments on both loans.
The key difference between a remortgage and a second charge loan is that with a remortgage, you replace your existing mortgage with a new one, while with a second charge loan, you take out an additional loan against the equity in the property. The choice between the two will depend on your individual financial circumstances and needs.
At Your Best Interests, we can help you explore your options for both remortgages and second charge loans, and provide expert advice to help you make an informed decision on the best course of action for your individual needs.
Why would I want a 2nd charge instead of a Remortgage?
There are several reasons why you might consider getting a second charge loan instead of remortgaging:
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Avoidance of Early Repayment Charges
If you have an existing mortgage with an early repayment charge, taking out a second charge loan may be a cheaper option than remortgaging, as you can avoid paying these fees.
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Better Interest Rates
If you have a good mortgage deal that you don't want to lose, taking out a second charge loan may be more cost-effective than remortgaging, as you may be able to get a better interest rate than you would on a new mortgage.
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Faster Access to Funds
If you need funds quickly, a second charge loan may be a better option than remortgaging, as the process is generally faster and requires less paperwork.
However, it's important to note that second charge loans typically have higher interest rates than remortgaging, so it's important to weigh the pros and cons of both options before making a decision.
Bridge Loans & Commercial Finance
A bridge loan is a short-term loan that is used to bridge the gap between two transactions. Typically, bridge loans are used when you need to purchase a new property before selling an existing one, and need funds to cover the down payment and closing costs on the new property.
Bridge loans are usually secured against either your existing property or the property you wish to purchase, and the loan amount is based on the value of the property rather than your creditworthiness or income. The loan term is typically between 6 and 12 months, but it can vary depending on the lender and your circumstances.
When would I need a bridge loan?
You might need a bridge loan when you are in a situation where you need to purchase a new property before selling an existing one, but you do not have enough funds available to make the purchase.
Here are some common scenarios where a bridge loan may be necessary:
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Buying a new Home before Selling your Current one
If you have found a new home that you want to buy, but have not yet sold your current home, a bridge loan can help you finance the down payment and closing costs on the new home.
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Property Development
If you are a property developer, a bridge loan can help you finance the purchase of a property that you plan to renovate or develop.
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Auction Purchases
If you plan to buy a property at auction, a bridge loan can provide you with the funds you need to make the purchase, as auction sales typically require payment within a short timeframe.
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Buying a Property in a Chain
If you are part of a property chain and need to complete a purchase before the sale of your current property is finalized, a bridge loan can help you bridge the gap in financing.
What is commercial finance or a commercial mortgage?
A commercial mortgage is a type of loan that is secured by a commercial property. Commercial properties include office buildings, retail spaces, warehouses, factories, and other properties that are used for business purposes.
Commercial mortgages are usually used to finance the purchase or refinancing of commercial properties. The loan terms and interest rates for commercial mortgages are typically higher than for residential mortgages, reflecting the increased risk of lending to businesses.
Commercial mortgages are often structured differently than residential mortgages. The loan term is typically shorter, typically between 5 and 25 years, and the loan-to-value ratio is often lower, which means that the lender will only provide a loan for a portion of the property's value.
Repayments on commercial mortgages are often structured to reflect the cash flow of the business, with some repayment options including interest-only payments or balloon payments. The interest rate on a commercial mortgage can be fixed or variable, and may be influenced by factors such as your creditworthiness, the property's value, and the overall health of the economy.
What security do lenders need for commercial mortgages?
Lenders typically require security for a commercial mortgage, which is usually the property being purchased or an existing property owned by you. The property is used as collateral to secure the loan, which means that if the borrower defaults on the loan, the lender has the right to take possession of the property and sell it to recover the outstanding debt. The lender may also require a personal guarantee from you or a charge over your assets in addition to the property.
What is the minimum deposit required for a commercial mortgage ?
Depending on the type of commercial minimum deposits are usually anywhere from 25% - 40% deposit requirement.
How can we assist you with obtaining a bridge loan or commercial mortgage that is in your best interests?
At Your Best Interests, our expert advisors can provide assistance with obtaining a bridge loan or commercial mortgage. We will assist you in navigating the process, identifying the most appropriate lender, and negotiating on your behalf. Our team will provide you with comprehensive information on the various options available to you and assist you in selecting the most suitable one for your unique requirements. We will handle your application, liaise with lenders and solicitors, and address any questions or concerns you may have along the way. Our primary objective is to ensure that you secure the most favorable terms possible and that your application is approved.