Latest news with #MortgageGuaranteeScheme
Scottish Sun
30-06-2025
- Business
- Scottish Sun
Vital scheme to get 1,000s on the get on property ladder with tiny deposit ends TODAY – full list of rival deals
Plus we reveal what other support is out there for first time buyers HOUSE HELP Vital scheme to get 1,000s on the get on property ladder with tiny deposit ends TODAY – full list of rival deals Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A POPULAR scheme which helps thousands get on the property ladder ends today. The Mortgage Guarantee Scheme was first launched in 2021 and allows buyers to purchase a home with just a 5% deposit. Sign up for Scottish Sun newsletter Sign up 1 The Mortgage Guarantee Scheme helps buyers get on the ladder with a 5% deposit Credit: Getty It can be used to purchase homes worth up to £600,000. The government will then provide a guarantee to the lender to cover some losses if the buyer cannot repay their mortgage and the property gets repossessed. The scheme is set to end today, Monday June 30. But all hope is not lost for those looking for help to get on the property ladder. A new permanent mortgage guarantee scheme is set to launch next month. Plans for the support were initially laid out in the Chancellor's Spending Review earlier this month. Guarantees issued under the scheme will be valid for seven years after the mortgage is approved. Lenders who opt into the programme will also pay HM Treasury a fee for each mortgage entered into the scheme. Emma Reynolds, the economic secretary to the Treasury, said: "We committed to introduce a permanent mortgage guarantee scheme in our election manifesto to ensure buyers with smaller deposits can get a mortgage and fulfil their home ownership ambitions." The mortgage deals were popular leading up to the 2008 financial crash but were phased out afterwards. 5 things to check before applying for a mortgage WHAT OTHER DEALS ARE ON THE MARKET? News of the relaunch comes as many lenders are now offering their own 5% mortgage deals. Nationwide just recently launched a 95% mortgage for buyers looking to purchase a new build home. The offer also allows customers to borrow six times their annual income through its Helping Hand scheme. Elsewhere, Skipton Building Society offers a 100% mortgage deal that allows you to buy a home without a deposit. A similar mortgage deal was recently launched by April Mortgages too. Customers would need to have a household income of at least £24,000 and be looking to buy or remortgage a house that's valued at more than £75,000. The mortgage deal is available on 10 and 15-year fixed terms, so buyers would need to be happy to lock in for a long period of time. However there are no early repayment charges if you decide to move home or if you repay the mortgage in full. Yorkshire Building Society also has a 95% mortgage offer for first and second time home buyers. The fixed deal has an Annual Percentage Rate of Charge of 6.5%. This is a calculation that represents the total cost of a mortgage over its entire term, including all fees and interest. Elsewhere, First Direct also offers a 4.95% mortgage offer. The offer is fixed at 4.95% for five years before reverting to 6.74%. It has an APRC of 6.1% but offers no underpayments or payment holidays if you end up in financial difficulty. WHAT SUPPORT IS OUT THERE FOR FIRST TIME BUYERS? There are plenty of other support schemes for first time buyers. Earlier this year, TSB launched a new "5&5" concessionary mortgage option for its customers. Under the lender's new scheme, landlords would offer their tenants a 5% discount on the property's market value in exchange for putting down a minimum of 5% deposit. Concessionary mortgages allow wannabe homeowners to bag a property for less than the market value. They are usually used by landlords selling a house to their tenants, or someone selling a property to a relative. A number of lenders offer some variation of this mortgage type including Barclays and Natwest. Another option is a Lifetime ISA (LISA) which is designed to help people save for either a first home or retirement. The account is tax-free and anyone aged between 18-39 can open one. You can save up to £4,000 a year and the government will then add a 25% bonus on top. If you save the maximum amount between the ages of 18 and 50 you could get as much as £32,000 for free. You'll also earn tax-free interest on your savings pot, including the added extra from the government. If you choose to buy a property it must cost less than £450,000 and you must buy it at least 12 months after you make your first payment into the Lifetime Isa. There are strict withdrawal rules surrounding a LISA that prospective users should be aware of. For example, you can only make an authorised withdrawal from your LISA to purchase a house or if you are terminally ill. Elsewhere, the banking watchdog is looking to relax lending rules to help buyers get on the property ladder. The FCA said it would like to hear views on whether its rules "could better support more interest‑only mortgages'. The body said: "Interest‑only mortgages could be suitable for consumers who may struggle to afford a repayment mortgage and can support sustainable home ownership.' With this type of product, all you pay each month is the interest on the amount you borrowed.
The Sun
30-06-2025
- Business
- The Sun
Vital scheme to get 1,000s on the get on property ladder with tiny deposit ends TODAY – full list of rival deals
A POPULAR scheme which helps thousands get on the property ladder ends today. The Mortgage Guarantee Scheme was first launched in 2021 and allows buyers to purchase a home with just a 5% deposit. 1 It can be used to purchase homes worth up to £600,000. The government will then provide a guarantee to the lender to cover some losses if the buyer cannot repay their mortgage and the property gets repossessed. The scheme is set to end today, Monday June 30. But all hope is not lost for those looking for help to get on the property ladder. A new permanent mortgage guarantee scheme is set to launch next month. Plans for the support were initially laid out in the Chancellor's Spending Review earlier this month. Guarantees issued under the scheme will be valid for seven years after the mortgage is approved. Lenders who opt into the programme will also pay HM Treasury a fee for each mortgage entered into the scheme. Emma Reynolds, the economic secretary to the Treasury, said: "We committed to introduce a permanent mortgage guarantee scheme in our election manifesto to ensure buyers with smaller deposits can get a mortgage and fulfil their home ownership ambitions." The mortgage deals were popular leading up to the 2008 financial crash but were phased out afterwards. WHAT OTHER DEALS ARE ON THE MARKET? News of the relaunch comes as many lenders are now offering their own 5% mortgage deals. Nationwide just recently launched a 95% mortgage for buyers looking to purchase a new build home. The offer also allows customers to borrow six times their annual income through its Helping Hand scheme. Elsewhere, Skipton Building Society offers a 100% mortgage deal that allows you to buy a home without a deposit. A similar mortgage deal was recently launched by April Mortgages too. Customers would need to have a household income of at least £24,000 and be looking to buy or remortgage a house that's valued at more than £75,000. The mortgage deal is available on 10 and 15-year fixed terms, so buyers would need to be happy to lock in for a long period of time. However there are no early repayment charges if you decide to move home or if you repay the mortgage in full. Yorkshire Building Society also has a 95% mortgage offer for first and second time home buyers. The fixed deal has an Annual Percentage Rate of Charge of 6.5%. This is a calculation that represents the total cost of a mortgage over its entire term, including all fees and interest. Elsewhere, First Direct also offers a 4.95% mortgage offer. The offer is fixed at 4.95% for five years before reverting to 6.74%. It has an APRC of 6.1% but offers no underpayments or payment holidays if you end up in financial difficulty. WHAT SUPPORT IS OUT THERE FOR FIRST TIME BUYERS? There are plenty of other support schemes for first time buyers. Earlier this year, TSB launched a new "5&5" concessionary mortgage option for its customers. Under the lender's new scheme, landlords would offer their tenants a 5% discount on the property's market value in exchange for putting down a minimum of 5% deposit. Concessionary mortgages allow wannabe homeowners to bag a property for less than the market value. They are usually used by landlords selling a house to their tenants, or someone selling a property to a relative. A number of lenders offer some variation of this mortgage type including Barclays and Natwest. Another option is a Lifetime ISA (LISA) which is designed to help people save for either a first home or retirement. The account is tax-free and anyone aged between 18-39 can open one. You can save up to £4,000 a year and the government will then add a 25% bonus on top. If you save the maximum amount between the ages of 18 and 50 you could get as much as £32,000 for free. You'll also earn tax-free interest on your savings pot, including the added extra from the government. If you choose to buy a property it must cost less than £450,000 and you must buy it at least 12 months after you make your first payment into the Lifetime Isa. There are strict withdrawal rules surrounding a LISA that prospective users should be aware of. For example, you can only make an authorised withdrawal from your LISA to purchase a house or if you are terminally ill. Elsewhere, the banking watchdog is looking to relax lending rules to help buyers get on the property ladder. The FCA said it would like to hear views on whether its rules "could better support more interest‑only mortgages '. The body said: "Interest‑only mortgages could be suitable for consumers who may struggle to afford a repayment mortgage and can support sustainable home ownership.' With this type of product, all you pay each month is the interest on the amount you borrowed. What help is out there for first-time buyers? GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home. Help to Buy Isa - It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it. Help to Buy equity loan - The Government will lend you up to 20% of the home's value - or 40% in London - after you've put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property. Lifetime Isa - This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top. Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you're restricted to specific ones. Mortgage guarantee scheme - The scheme opens to new 95% mortgages from April 19 2021. Applicants can buy their first home with a 5% deposit, it's eligible for homes up to £600,000.
Business News Wales
12-06-2025
- Business
- Business News Wales
A Complex Market but Plenty of Support for First-Time Buyers
The headlines can paint a daunting picture. Last year, the average purchase price for a first-time buyer in the UK was more than £310,000. The average deposit was more than £60,000. And with the cost of living and interest rates where they are, it's no surprise that many aspiring buyers are feeling discouraged. But those same headlines don't tell the whole story. In 2024, the number of first-time buyers rose 20% compared to the previous year. More than half of all UK home purchases are made by first-time buyers – the highest share on record. So despite the challenges, demand is strong, and that's cause for optimism. There are options out there. Our job, both lenders and mortgage advisors, is to help people understand those options and support them through the process. Deposit remains a major hurdle, but there are now several solutions designed to help. At Halifax, we offer mortgages at 95% loan-to-value, with the support of a Mortgage Guarantee Scheme. That means the deposit doesn't need to be £60,000 – it could be more like £15,000 or £20,000, depending on the property. There are also cashback products that can ease the upfront cost and help with those first few months in a new home. Shared ownership is another good example. Buyers purchase a percentage of a home and pay rent on the rest, with the option to increase their share over time. This helps reduce the deposit needed, and it's an area where we're seeing a lot of activity. Affordability is the second big challenge, and this is where the market is evolving quickly. At Halifax, we've introduced the First-Time Buyer Boost to help more buyers meet affordability criteria. The UK Government has also updated affordability stress-testing guidance, and while that's still taking shape, it is prompting further change across the sector. Family support remains key for many buyers. Gifting a deposit – often from parents – is a longstanding option, but now we're seeing more intergenerational solutions. If the Bank of Mum and Dad were a lender, it would be the tenth largest in the UK. This tells us something important about how families are working together to meet deposit and affordability challenges. There are ways to formalise that support. Joint borrower, sole proprietor mortgages allow parents to contribute income without being named on the title. We're also seeing concessionary purchases, where buyers purchase from a landlord or family member at a discounted price, which can reduce or eliminate the deposit requirement altogether. And for some families, equity release or later-life lending may be a way to unlock the value in a property to support the next generation. This isn't suitable for everyone, and advice is essential, but it's another route that's helping people take their first step onto the property ladder. It's a complex landscape, and we don't expect first-time buyers to navigate it alone. Mortgage advisors play a crucial role here, and the earlier they engage with clients, the better. We want to help customers become mortgage-ready – even if that means starting conversations months or years before a purchase is made. The average age of a first-time buyer is now 33 – two years higher than a decade ago. But the aspiration to own a home is as strong as ever, and the support is there for those who seek it out. We take our responsibility seriously. At Halifax, we're committed to working closely with intermediaries to ensure they have the tools and knowledge to guide clients through what can be an overwhelming process. Whether it's new products, affordability updates or intergenerational lending solutions, we're here to help our partners support their clients every step of the way. There's no doubt that the market presents challenges. But the demand is real, and the solutions are evolving. We need to continue working together as an industry – lenders, advisors and brokers – to make homeownership a reality for the next generation of buyers. Gareth Gale talks about supporting first-time buyers in the Cornerstone Finance Group podcast, episodes three and four . Listen to the podcast here: Cornerstone: Podcast Series – Business News Wales
Scottish Sun
11-06-2025
- Business
- Scottish Sun
Mortgage scheme to help first-time buyers with small deposits WILL launch this summer, Spending Review reveals
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) RACHEL Reeves' Spending Review has confirmed the extension of a mortgage scheme aimed at helping first-time buyers with small deposits. The Mortgage Guarantee Scheme will re-launch permanently in July, according to government documents released today. Sign up for Scottish Sun newsletter Sign up 1 Since the scheme began, over 53,000 mortgages have been completed using it, with a total value of £10.7billion as of December last year Credit: Getty The scheme, first introduced in 2021 and initially set to end this month, allows buyers to purchase a home with just a 5% deposit. It can be used for any property costing up to £600,000. The government then provides a guarantee to lenders, covering some of their losses if the borrower cannot repay their mortgage and the home is repossessed. While the current application round ends on 30 June, a new permanent mortgage guarantee scheme will launch in July, aiming to help more young families and renters become homeowners, according to the Spending Review. The Spending Review also includes: A pledge to end the use of migrant hotels by the next election Confirmation that nine million pensioners will get the winter fuel allowance this year Free school meals for half a million more children An extra £39billion over the next decade for social housing A £15billion boost to transport to "properly connect" Britain's towns and cities £22billion investment in research and development and £2billion in Artificial Intelligence A £30billion injection in clean energy including £14billion for nuclear energy A rise in departmental budgets by 2.3% a year totalling £190billion more than the Tories The Defence budget hiked to 2.6% of GDP by 2027 Since the scheme began, over 53,000 mortgages have been completed using it, with a total value of £10.7billion as of December last year. This was especially helpful in the early 2020s, right after the pandemic. At that time, many banks were worried about the economy and were reluctant to offer mortgages to people with small deposits because they feared people might lose their jobs or house prices might fall. It was tough to get a mortgage if you only had a 5% deposit. The Mortgage Guarantee Scheme solved this by promising to cover some of the banks' losses if borrowers couldn't pay back their loans. This gave banks the confidence to offer 95% mortgages again. Best schemes for first-time buyers However, many banks are now offering similar mortgages without relying on government support. Experts believe the scheme's future is less significant, as banks are increasingly willing to lend to people with small deposits. Pete Mugleston, mortgage adviser and managing director at Online Mortgage Advisor, said: "On the one hand, the Mortgage Guarantee Scheme is a useful way of helping first-time buyers get on the property ladder if they don't have a large deposit "But, given that a lot of lenders are now offering mortgages with a 5% deposit and lower, the Scheme isn't as big an issue." For example, Skipton Building Society offers a 100% mortgage deal that allows you to buy a home without a deposit. A similar mortgage deal was recently launched by April Mortgages too. Accord offers a £5,000 deposit mortgage while other lenders have been slashing their affordability rules. A word of warning NO deposit mortgages can open doors for people who wouldn't be able to get on the housing ladder otherwise. Experts have generally seen the reintroduction of 100% mortgages as a positive thing and this deal from April Mortgages does have rigid lending criteria. But it's important to remember this deal won't be for everyone and they can be seen as quite controversial home loans. 100% mortgages mean you don't need a deposit - but it also puts buyers at higher risk of negative equity. This is when your mortgage is more than the total value of your home, which can happen if house prices fall. If you're in this position it can make it harder to remortgage, sell your home and get competitive rates from lenders. Typically they also have higher interest rates, making them more expensive. The general rule is that the smaller your deposit the higher your monthly mortgage repayments will be. Therefore because you won't have a deposit, your monthly repayments are likely to be more expensive compared with someone who did put down a deposit. You will need to be sure you can keep up with the payments and account for any potential financial shocks. 100% mortgages disappeared after the financial crisis in 2008, as they were seen a contributor to the sub-prime housing bubble and subsequent collapse. What other schemes are available? There are other government schemes available for first-time buyers alongside the Mortgage Guarantee Scheme. It's important to carefully explore each option, weighing the benefits and potential drawbacks, before making a decision. Here are some of the available options... First Homes First-time buyers can get a home for between 30 to 50% less than its market value through the First Homes scheme. You can buy a new build home from a developer or a property from someone who's used the scheme before and is now selling. The scheme is only available in England and you'll have to be 18 or older to qualify. Your total household income must be £80,000 or less, or £90,000 in London. You'll also need to be able to get a mortgage for at least half the price of the home. Shared ownership If you can't afford all of the deposit and mortgage payments for a home that meets your needs, you could consider shared ownership. This is when you buy a share of the property and pay rent to a landlord on the rest. You'll also likely need to pay a service charge to maintain common areas shared between you and your neighbours. Buyers can usually get a share of between 10 and 75% of the home's full value. You can buy more of the home later on in a process called staircasing. However, some people who have used shared ownership have struggled to buy bigger portions of their homes due to being forced to pay increasing rents and service charges. Lifetime ISA People struggling to save for a deposit can get extra help from the Government by saving into a Lifetime ISA (LISA). You can save up to £4,000 a year into it and the Government will give you a free bonus worth 25% of whatever you save. You have to be between 18 and 39 to open a LISA and you can pay in and get the bonus until you're 50. It's worth knowing that if you withdraw your money before you're 60, it must be spent on buying your first home. If you withdraw it for any other reason you'll lose your bonus and also effectively pay a 6.25% penalty - so you'll end up with less than you put in. You should also be aware that you can only use a LISA on homes worth up to £450,000. Right to Buy This scheme was brought in during the 1980s and allows most council tenants the right to buy their council house at a discount. There are different rules for Wales, Scotland and Northern Ireland. You can make a joint application with up to three family members who have lived with you for the past 12 months. If you rent from a Housing Association you may also have the right to buy it at a discount under the Government's Right to Acquire Scheme. Deposit Unlock This lets you buy a new build home from any developer registered with the scheme as long as you have a 5% deposit. The scheme is available to both first-time buyers and home movers. It's available on new-build homes up to the price of £833,250. Deposit Unlock is currently available with participating lenders including Nationwide and Accord Mortgages.
The Sun
11-06-2025
- Business
- The Sun
Mortgage scheme to help first-time buyers with small deposits WILL launch this summer, Spending Review reveals
RACHEL Reeves' Spending Review has confirmed the extension of a mortgage scheme aimed at helping first-time buyers with small deposits. The Mortgage Guarantee Scheme will re-launch permanently in July, according to government documents released today. 1 The scheme, first introduced in 2021 and initially set to end this month, allows buyers to purchase a home with just a 5% deposit. It can be used for any property costing up to £600,000. The government then provides a guarantee to lenders, covering some of their losses if the borrower cannot repay their mortgage and the home is repossessed. While the current application round ends on 30 June, a new permanent mortgage guarantee scheme will launch in July, aiming to help more young families and renters become homeowners, according to the Spending Review. The Spending Review also includes: A pledge to end the use of migrant hotels by the next election Confirmation that nine million pensioners will get the winter fuel allowance this year Free school meals for half a million more children An extra £39billion over the next decade for social housing A £15billion boost to transport to "properly connect" Britain's towns and cities £22billion investment in research and development and £2billion in Artificial Intelligence A £30billion injection in clean energy including £14billion for nuclear energy A rise in departmental budgets by 2.3% a year totalling £190billion more than the Tories The Defence budget hiked to 2.6% of GDP by 2027 Since the scheme began, over 53,000 mortgages have been completed using it, with a total value of £10.7billion as of December last year. This was especially helpful in the early 2020s, right after the pandemic. At that time, many banks were worried about the economy and were reluctant to offer mortgages to people with small deposits because they feared people might lose their jobs or house prices might fall. It was tough to get a mortgage if you only had a 5% deposit. The Mortgage Guarantee Scheme solved this by promising to cover some of the banks' losses if borrowers couldn't pay back their loans. This gave banks the confidence to offer 95% mortgages again. However, many banks are now offering similar mortgages without relying on government support. Experts believe the scheme's future is less significant, as banks are increasingly willing to lend to people with small deposits. Pete Mugleston, mortgage adviser and managing director at Online Mortgage Advisor, said: "On the one hand, the Mortgage Guarantee Scheme is a useful way of helping first-time buyers get on the property ladder if they don't have a large deposit "But, given that a lot of lenders are now offering mortgages with a 5% deposit and lower, the Scheme isn't as big an issue." For example, Skipton Building Society offers a 100% mortgage deal that allows you to buy a home without a deposit. A similar mortgage deal was recently launched by April Mortgages too. Accord offers a £5,000 deposit mortgage while other lenders have been slashing their affordability rules. A word of warning NO deposit mortgages can open doors for people who wouldn't be able to get on the housing ladder otherwise. Experts have generally seen the reintroduction of 100% mortgages as a positive thing and this deal from April Mortgages does have rigid lending criteria. But it's important to remember this deal won't be for everyone and they can be seen as quite controversial home loans. 100% mortgages mean you don't need a deposit - but it also puts buyers at higher risk of negative equity. This is when your mortgage is more than the total value of your home, which can happen if house prices fall. If you're in this position it can make it harder to remortgage, sell your home and get competitive rates from lenders. Typically they also have higher interest rates, making them more expensive. The general rule is that the smaller your deposit the higher your monthly mortgage repayments will be. Therefore because you won't have a deposit, your monthly repayments are likely to be more expensive compared with someone who did put down a deposit. You will need to be sure you can keep up with the payments and account for any potential financial shocks. 100% mortgages disappeared after the financial crisis in 2008, as they were seen a contributor to the sub-prime housing bubble and subsequent collapse. What other schemes are available? There are other government schemes available for first-time buyers alongside the Mortgage Guarantee Scheme. It's important to carefully explore each option, weighing the benefits and potential drawbacks, before making a decision. Here are some of the available options... First Homes First-time buyers can get a home for between 30 to 50% less than its market value through the First Homes scheme. You can buy a new build home from a developer or a property from someone who's used the scheme before and is now selling. The scheme is only available in England and you'll have to be 18 or older to qualify. Your total household income must be £80,000 or less, or £90,000 in London. You'll also need to be able to get a mortgage for at least half the price of the home. Shared ownership If you can't afford all of the deposit and mortgage payments for a home that meets your needs, you could consider shared ownership. This is when you buy a share of the property and pay rent to a landlord on the rest. You'll also likely need to pay a service charge to maintain common areas shared between you and your neighbours. Buyers can usually get a share of between 10 and 75% of the home's full value. You can buy more of the home later on in a process called staircasing. However, some people who have used shared ownership have struggled to buy bigger portions of their homes due to being forced to pay increasing rents and service charges. Lifetime ISA People struggling to save for a deposit can get extra help from the Government by saving into a Lifetime ISA (LISA). You can save up to £4,000 a year into it and the Government will give you a free bonus worth 25% of whatever you save. You have to be between 18 and 39 to open a LISA and you can pay in and get the bonus until you're 50. It's worth knowing that if you withdraw your money before you're 60, it must be spent on buying your first home. If you withdraw it for any other reason you'll lose your bonus and also effectively pay a 6.25% penalty - so you'll end up with less than you put in. You should also be aware that you can only use a LISA on homes worth up to £450,000. Right to Buy This scheme was brought in during the 1980s and allows most council tenants the right to buy their council house at a discount. There are different rules for Wales, Scotland and Northern Ireland. You can make a joint application with up to three family members who have lived with you for the past 12 months. If you rent from a Housing Association you may also have the right to buy it at a discount under the Government's Right to Acquire Scheme. Deposit Unlock This lets you buy a new build home from any developer registered with the scheme as long as you have a 5% deposit. The scheme is available to both first-time buyers and home movers. It's available on new-build homes up to the price of £833,250. Deposit Unlock is currently available with participating lenders including Nationwide and Accord Mortgages. How to get the best deal on your mortgage IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time. There are several ways to land the best deal. Usually the larger the deposit you have the lower the rate you can get. If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before. Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher. A change to your credit score or a better salary could also help you access better rates. And if you're nearing the end of a fixed deal soon it's worth looking for new deals now. You can lock in current deals sometimes up to six months before your current deal ends. Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost. But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first. To find the best deal use a mortgage comparison tool to see what's available. You can also go to a mortgage broker who can compare a much larger range of deals for you. Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender. You'll also need to factor in fees for the mortgage, though some have no fees at all. You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term. You can use a mortgage calculator to see how much you could borrow. Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file. You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements.
