Making an appointment
Talk to a Mortgage Advisor
Pop into your local Principality branch or call us to arrange your initial mortgage discussion.
During your first meeting, your Mortgage Advisor will ask you a few questions to make sure we're able to proceed with your mortgage application. This only takes about fifteen minutes. If we can proceed, we'll arrange a mortgage Agreement in Principle and start the application process.
What mortgage is best for me?
There are lots of different mortgages for first time buyers, all of which we've outlined below. After considering your individual needs and circumstances, your Mortgage Advisor will be able to recommend one that best suits you.
With Fixed Rate mortgages, your payments stay the same for a fixed period of time. No matter what happens to interest rates and how high or low they go.
These are Variable Rate mortgages that are discounted against the Standard Variable Rate for a set period. The discount is usually a stated percentage below the Standard Variable Rate. There may be a minimum interest rate on a Discount mortgage, which means if the Standard Variable Rate falls below a certain level, your monthly payments will not reduce further.
Tracker mortgages move up and down in line with the Bank of England Base Rate for a set period. So, if the Base Rate falls, so will your monthly payments. Of course, if the Base Rate goes up, your payments will too. There may be a minimum interest rate on a Tracker mortgage, which means if the Base Rate falls below a certain level, your monthly payments will not reduce below that level.
With Standard Variable Rate mortgages, the mortgage provider will set the rate of interest. This rate can go up or down at their discretion, usually because of changes in the Bank of England Base Rate or other reasons. This is the normal rate without discounts or deals and it is the rate your mortgage will switch to once these have ended.
Repaying your mortgage
It's important to note that you also have options on how to repay your mortgage, these may vary depending on your circumstances, but he options below explain what you can expect from either payment method.
With an interest only mortgage your monthly payments will only cover the interest on your mortgage loan. This means you pay less each month, and at the end of the term you still owe the full amount you originally borrowed.
With a repayment mortgage, each month you repay a part of the amount you borrowed, plus that month's interest. This means the amount outstanding on your mortgage reduces monthly, so by the end of the term, provided you've made all payments when they are due, you will have repaid the full amount.
Affordable housing schemes
Both Shared Equity and Shared Ownership schemes aim to make home ownership more affordable for people without substantial savings.
Shared equity schemes work by you receiving an equity loan to put towards buying a property. It can be a quick way to boost the size of your deposit and increase your chances of getting a good mortgage deal.
With shared ownership, you part-buy and part-rent a home from a housing association, allowing you to take out a much smaller mortgage than if you were buying the whole property.
Top tips when making your appointment
The first appointment you have with a mortgage advisor will be to understand if we can proceed with your application. If successful we'll then arrange a mortgage appointment for you and give you a 'pre-appointment pack' for you to read before your next appointment. If will include a number of forms for you to fill in, you should make sure you complete these and bring any information that's requested, to ensure the appointment goes as quickly and smoothly as possible.
Your mortgage offer
If everything goes smoothly, you cold receive a formal mortgage offer within 4-6 weeks of the full application and supporting documentation being received. This could vary depending on the turn around time of the mortgage provider you've chosen. You'll receive a copy of the formal mortgage offer by post, with another copy going to your solicitor or conveyancer.