What is a Prime Mortgage?

A prime or standard mortgage is provided by mainstream lenders to borrowers who have high score or normal credit ratings.

Lenders will have prescribed and fairly rigid underwriting criteria, where little deviation exists to accommodate anything but borrowers with high or normal score credit rating.

For borrowers with low credit scores or credit impaired status, there are specialist lenders who can provide Sub-prime or ‘Bad credit’ mortgages. 

 

Types of Borrower

You could be a first time buyer, a home mover or remaining in your home and just changing your mortgage – i.e. remortgaging.

 

Reasons for Mortgaging

You could be borrowing money to purchase a property or raising capital for home improvements, holiday, business venture, car purchase or consolidating debts – i.e. releasing equity, or simply moving your mortgage to get a better deal – i.e. pound for pound mortgage transfer or remortgaging. You may even be doing all of these at the same time!

 

Types of Prime Mortgage Repayment Methods

When you take out a mortgage or loan, you will need to have agreed with the lender how you are going to repay it.

As a borrower you have two main options when considering the method of repaying the loan. Over the term of the loan, you can make monthly repayments consisting partly of capital and partly of interest – i.e. Capital repayment mortgage or you can pay interest only every month, leaving the capital to be repaid at the end of the loan term.

 

How do I get a Prime Mortgage?

The first and most important step after you have decided you may want a prime mortgage is to have a discussion with us to provide you with independent financial advice.

Once we have agreed what the most suitable mortgage is for your particular circumstances we make an application on your behalf to take out a loan based on how much you can afford and the value of the property, for a length of time agreed between you and the lender.

 

Want to know more?

Talk to one of our qualified financial advisers on 01553 777600 or e-mail us at enquiries@ringassociates.co.uk

Also you may want to read the free download publication from the Financial Services Authority titled ‘Helping you choose the right mortgage’ by accessing the following website www.moneymadeclear.fsa.gov.uk 

To check your credit rating for a nominal fee you can obtain your personal record by accessing one of the following credit referencing agencies website: