Are you planning to purchase a new house in the UK? It can make you sacrifice a colossal amount if you do not have proper planning.
However, the mortgage loan can bring a revolution in this journey. The best bank for mortgage UK can simplify your problem. Fulfil your desire to purchase your dream home.
Moreover, you can decide to construct your own home. In such cases, the UK Government can lend you around 5 to 20% of the property value.
This is based on the final valuation of your new property. However, it is important to determine your eligibility to get mortgage loans.
You can also transform your home purchase into a worthy affair. When you are in urgent need of funds, your home can save you.
The mortgage loans are available for genuine purposes in the UK.
In this context, I will discuss about the top 4 banks offering such loans. Figure out your needs and resolve your financial troubles today.
Eligibility For Mortgage Loans in UK
The eligibility for obtaining mortgage loans in the UK is subject to certain rules. Therefore, before you apply for this loan, ensure that you are eligible.
However, the rules for sanctioning the loans depend on the bank’s policies. These vary from one bank to the other. So, it is essential to read the documents well before you make the loan application.
Furthermore, you have to find the best bank for mortgage UK to ensure timely availability of funds. In the coming year, all your financial problems will come to an end as you make the right move.
It is crucial to ensure that the concerned bank is genuine. The lender must have a good reputation in the market.
The primary eligibility for mortgage loans is as follows:-
- Age of borrower must be 18 years or above
- The borrower must be ready to repay the loan by 70 years of age
- The mortgage agreement will consider current and retirement income
- The rate of interest will depend on the age and the period of mortgage
- Varying values for properties as per the age of the property
These are the common rules for most banks. However, the best bank for mortgage UK 2024 will let you read every criterion well.
Read, understand, and then go for the application. Always be clear about the repayment of the mortgage loans.
Top 4 Best Banks for Mortgage UK
The seamless supply of mortgage loans in the UK is possible, only through reputed financial institutions. Therefore, look for the best bank for mortgage UK and choose the plan with the lowest interest rate.
It can be challenging to make such a selection when the number of banks is so high. However, you opt for a bank based on certain criteria.
No bank can be “best” in true terms. The quality of services may vary from one bank to another. It can be satisfying to some, while not up to the mark for others. Hence, people have various criteria to select the best bank for mortgage UK in 2024.
Furthermore, you should cultivate the selling points while determining the bank. Ensure you get the mortgage loan at the correct rate. The best banks available in the UK are explained below.
This is a very powerful lender in the UK. HSBC has exciting schemes for mortgaging and remortgaging house properties.
Even if you are not from the UK, you can still borrow from this bank. However, in such a case, it is essential to fill out the application form for a non-UK resident mortgage.
Moreover, it has different rates for various categories of mortgage loans. They are
- Moving Home
- First-Time Buyer
- Existing loan
Therefore, if you are already under any mortgage scheme of this bank, intimate that. If you are currently holding an account or a loan in an HSBC branch of another country, state that too.
All this information will make an impact on your next mortgage loan. The fixed-rate mortgages range between 60% LTV and 95% LTV.
Halifax belongs to the famous Lloyds Banking Group, the leader of the mortgage industry. The requirements for different mortgage loans are varied, according to the type of borrowers.
Therefore, it is indeed the best bank for mortgage UK. Halifax has an experience of several years of lending loans to suitable borrowers.
Moreover, Halifax has a massive database with information on different types of properties. It becomes easy for them to determine the right value depending on this information.
The valuer of Halifax evaluates every property as per the recent guidelines and specific instances. Undoubtedly, they will not give loans to all applicants. The borrower must fulfill the requisite criteria to obtain the said loan.
Usually, the standard tenure for the mortgage loan is 2 years. However, the bank can give additional consideration and make the tenure flexible for the self-employed.
It is to encourage more people to start their own businesses. Often, it is less than two years. Hence, self-employed people make Halifax the first choice for easy borrowing.
3. B M Solutions
The next best bank for mortgage UK 2024 will be BM Solutions. They is also another subsidiary of Lloyd Banking Group. However, this financial institution is a specialist in rendering Buy-To-Let mortgage loans.
They do not give loans to any other sector. Therefore, if you need mortgage loans, BM Solutions should be the first preference.
Moreover, most banks in the UK require a minimum of £25,000 as the annual income to be eligible for the loan. However, you will not have any such restriction in the case of this bank.
To be more precise, BM Solutions acts only through an intermediary. Therefore, please connect with a reliable intermediary like a loan broker or agent for applying for mortgage loans here.
The fixed rate of interest starts from 4.64% and may even be 5.81%. This rate usually prevails when you apply for a loan amount of £150,000.
However, these are subject to changes from time to time. Discuss with your intermediary about the current rate before applying for the loan.
A finance supplier in the UK with a strong reputation is Nationwide. This is a great choice for first-time borrowers.
Undoubtedly, you can regard it as the best bank for mortgage UK when you do not have any experience in borrowing money from a bank. They charge reasonable rates.
Moreover, Nationwide allows borrowers to get the maximum benefits from the schemes. The affordable mortgage guarantee schemes are the primary attraction for this bank.
It is called Shared Ownership for special housing programmes. However, the Deposit Unlock Scheme is another alternative for loan seekers.
The loan rate thus varies between 6.4% and 15.3%, depending on the type of loan. You can apply for a loan of one to five-year duration.
What is the maximum limit for a mortgage loan in the UK?
There is no maximum limit for a mortgage loan in the UK. However, the amount you can borrow will vary as per the type of property. Besides, the bank will determine the lending amount from the property’s purchase price.
Can I apply for a mortgage loan at the time of retirement?
Yes, you can. In such a case, the bank will consider the income at the time of retirement and the income you are earning at the time of application.
What will happen if my income falls below the prescribed limit of a mortgage loan?
Due to the interest rate change, you may face a change in the overall amount of the mortgage loan interest rate. Your income may suddenly fall below the prescribed amount for the loan. However, such a state will not arise as the banks verify your creditworthiness at the time of sanctioning the loan. They calculate whether you will be able to repay the loan even after interest rate changes. So, this risk will not be there.
The services of an intermediary can resolve many of our financial problems. They keep track of the interest rates available from different banks. Therefore, it becomes easy to choose the best bank for a mortgage UK. Ensure that you purchase a bigger house by mortgaging your old dwelling.
Moreover, you can also get immediate funds by getting a mortgage loan with your existing property. Always go for a scheme that fulfils all your criteria. It can be a moving house loan or a buy-to-let loan. Every time you think about mortgage loans in the UK, you must consider the four banks mentioned above. They are the leading lenders in the UK market. Hence, you can get the guarantee of obtaining a loan from a trustworthy source.