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  |  Property  |  Mortgage  |  Mortgage Matters: Are you making a smart move?
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Mortgage Matters: Are you making a smart move?

by Jan Iverson-Pearson
continued from page 1
  1. You are a doctor but the years in medical school have meant you've incurred a lot of debt. You now have less money available to you for a mortgage because of the large sums of money you are paying back to your creditors on a monthly basis. Will you ever get your house or will you have to wait until all your loans are paid off?


    • Some lenders will now lend you up to five times your income - even up to 100% of the purchase price - if you are classified as a professional (medical doctor, pharmacist, optician, dentist, solicitor or accountant). This can be helpful when you are making hefty repayments, as most lenders will add up your yearly loan repayments before they multiply your income. For example, a £100 per month loan repayment would mean that £1200 is subtracted off your income before it is multiplied.


    • These professional income multipliers allow you to buy a more expensive property than the normal multipliers, which typically range from 3.25 to 4.25 times your income.

  2. You took out a mortgage six years ago over a 25-year term. Your initial discount has long since expired and you're now paying the standard variable rate, which you can comfortably afford. Your colleague at work has just remortgaged and saved herself a small fortune every month. It sounds like it would be a lot of hassle but is it worth looking into?


    • Do you know that rates are the cheapest they've been in over 40 years? For example, let's say you have a 19-year mortgage, with £100,000 outstanding on an interest only basis. By moving over from a typical standard variable rate to, for example, a new discounted or fixed rate mortgage, the savings achievable per month can be £200 or more. It all depends on which deal is right for you - it's certainly food for thought.




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