Mortgage Brokers in Colchester
1A Mill Road
Dealing with all types of Mortgage Including Purchases, Remortgages, Buy To Let. Also Insurance Including, Life assurance, Critical illness cover, Income protection & Buildings & Contents.
A.L. Insurance & Mortgage Solutions is an appointed representative of Sesame Ltd, which is authorised and regulated by the Financial Services Authority. Sesame is entered on the FSA register (www.fsa.gov.uk/register) under reference 150427.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Our usual fee is ?100 plus commission from the lender, or we can offer a fee only option of ?250.
The FSA do not regulate some forms of mortgage
We can only offer products from a limited number of insurers for Accident, Sickness & Unemployment & Buildings and Contents Insurance.
Ask us for a list of the insurers we offer insurance from.
As an independent mortgage broker, all of our mortgage advisers are fully qualified and have many years of experience. We are also Independent when it comes to Insurance Products so you know that you are getting the most competitive rates available on the market.
With a Current Account Mortgage, you run all of your finances through a single account - your mortgage, current account, savings and personal loans.
Any unspent income you have in your current account at the end of the month is taken off the mortgage debt you owe. For example, your monthly take-home pay is £1,500 and your total outgoings for the month are £1,300, the £200 left over comes off your mortgage, and you are immediately paying interest on a smaller amount of debt. Any savings you have are offset against any borrowings.
You can access your savings or overpayments whenever you like without having to inform your lender. Again, a CAM has all the features of a flexible mortgage. It genuinely allows you to take full responsibility for repaying your mortgage, and permits the more financially aware borrower to save time and money.
The aim is that the mortgage will be repaid before retirement. As long as that is on course, there is nothing much wrong with increasing borrowing by withdrawing from their current account. The lender will issue a chequebook to enable money to be withdrawn for any purpose. The only rule is that the maximum borrowing limit is not exceeded.
Other rules for setting up a current account mortgage might be that lender requires that the salary is paid into the account each month. The lender will calculate interest on a daily basis. Every month, money is paid in and money would be taken out (as the account is used as a current account this is normal). At the end of the month, any money that is left over after income minus what goes out reduces the balance outstanding on the account. As long as this outstanding balance is regularly reduced, it is like making overpayments into an ordinary flexible mortgage.
A higher rate of interest is generally charged than more traditional mortgages. The lenders are taking a risk both ways with this mortgage, in that they will make less money on the mortgage if you pay it back earlier, but could maybe not get the money back if you are unable to keep in control. It works both ways, and if you get it right, in particular the management of it, then it will benefit both the lender and the borrower.
It is important to make sure before you take out a current account mortgage that you are the right person for it.
A current account mortgage requires a great amount of discipline not just in order to enjoy the savings, but also to just pay off the balance itself before you retire. You have potentially many thousands of pounds in your current account always available to you, without needing a reason to avail yourself of it. Can you ensure the balance is continually reducing?
Our usual fee is £100 plus commission from the lender, or we can offer a fee only option of £250.
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