Isle of Wight mortgages
The Isle of Wight is an island just off the south coast of England, accessible via ferry or private plane. The Isle of Wight has been a popular tourist destination since Victorian times, beloved for its idyllic coastline, agreeable climate, and wide, open green spaces. It’s no wonder many people buy a holiday home on the island – or move there altogether!
As with buying any property, the chances are you will need a mortgage, and that’s where Loan Corp comes in. Loan Corp can offer mortgage advice and can help you understand different types of mortgages – and figure out the right mortgage repayment plan for you. As reputable brokers, our mortgage advisors are perfectly positioned to guide you through the whole process and find the best deals possible.
Estimate your Isle of Wight mortgage repayments rate with the Loan Corp mortgage calculator before starting your mortgage application! Get in touch with our mortgage advisers for the best deal, and take a step toward your dream home on the Isle of Wight.
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Can you get a property mortgage on the Isle of Wight?
The Isle of Wight can be a little confusing, especially for first-time buyers, since you have to take a ferry to get there. So, is the mortgage process any different if you currently live on the UK mainland and are looking to relocate or buy a second home on the island?
The short answer is no.
Since the island is still part of the UK, the process is the same as any other residential mortgage. This means you can submit a mortgage application for a property mortgage on the Isle of Wight, just like anywhere else in the United Kingdom.
What is a property mortgage?
You have almost certainly heard of mortgages, even if you have never had the cause to look into signing up for any mortgage deal yourself. Mortgages can be confusing, especially for first-time buyers, which is precisely why a mortgage adviser like Loan Corp can help.
A mortgage is essentially a sort of loan; whereby a bank or mortgage lender gives you money to use in return for repaying it over a set period with interest.
However, a mortgage is a loan secured with commercial or personal property. In this sense, a mortgage differs from other loans as it is specifically tied to a property purchase.
Buy-to-let mortgage
Many people seek to buy a property on the Isle of Wight to rent it out to tenants instead of living there themselves. In this case, they will be required to seek a buy-to-let mortgage.
The interest rates and deposit are often higher for this type of mortgage; however, the money you glean back from rental income can help cover the mortgage.
Holiday let
Similarly, if you are looking to maximise the popularity of the Isle of Wight as a holiday destination and let out your place to tourists, speak to one of our mortgage brokers at Loan Corp about taking out a holiday let or converting your existing mortgage.
Mortgage deposit
The vast majority of mortgages will require some deposit, giving lenders some security before giving away a lot of money. With Loan Corp, understanding mortgage deposits is straightforward as everyone – regardless of the property in question or the amount you can pay as a deposit – fills in the same form.
A mortgage broker will help you to find the perfect deal. However, the more of a deposit you can offer, the better the deal is. Some lenders are willing to offer 100% mortgage (as in with no deposit), but these are increasingly hard to come by. Most often, a minimum of 5% deposit is required for properties around the UK, including the Isle of Wight.
Of course, many people seek a property on the Isle of Wight to use as a holiday home, which they may rent for most of the year. The mortgage deposit is usually a little more demanding for a buy-to-let property.
The standard mortgage deposit for a buy-to-let property is 25% but can be as much as 40% or as little as 15%, depending on your circumstances. A higher deposit is preferred for a buy-to-let property, but the best thing you can do is speak to our specialist brokers about the amount you would like to pay and let us help you find the perfect loan.
Interest rates
Interest rates are the extra payments you pay back to the mortgage lender for the privilege of borrowing their money. The interest you pay will depend on the amount borrowed and the lender.
When taking out a mortgage for a property in the UK, including on the Isle of Wight, the type of interest rates you pay are laid out when you agree to take out the mortgage.
How to get approved for a mortgage on the Isle of Wight
You should first speak to a mortgage adviser, especially if you are applying for a first-time buyer mortgage. When applying for a mortgage, there are a few criteria you need to meet to qualify. These criteria will also determine exactly what sort of mortgage you are eligible for.
Applying for a mortgage can seem a little daunting and even invasive; however, most people find the application process easier to understand than they initially expected. A mortgage adviser can help with this.
The main criteria which affect your mortgage application include:
- The location of your desired property
- The cost of said property
- Your current salary
- Your credit score
Generally, the cost of property on the Isle of Wight is lower than other regions of southern England, though higher than many parts of both the Midlands and North of England. Rising property costs in London and surrounding boroughs have led many people to relocate to the Isle of Wight for better property and to save money.
The affordable property prices on the island will be reflected in the mortgage rates, giving many first-time buyers a leg up they need to get onto the property ladder.
Types of mortgage
As a mortgage broker, Loan Corp can help prospective buyers find the best mortgage to suit their circumstances and financial needs. We understand that not every mortgage lender is the same, and some will be a better fit for you than others.
Repayment mortgages
The most common type of mortgage, with a repayment mortgage, you will pay a set amount every month, partly to cover the capital borrowed and partly to cover the interest rates.
The amount you pay is calculated to match the agreed mortgage term so that you will own your property at the end.
Interest-only mortgages
Mortgage advisers will often encourage prospective buyers to seek an interest-only mortgage. This is a more affordable option for new home buyers and buyers with other debts.
With an interest-only mortgage, buyers only pay the monthly interest rate for as long as the term of their mortgage. They will not be required to pay the borrowed capital until the end of the mortgage term.
The good thing about interest-only mortgages is that you pay a much lower amount every month, allowing you to pay for home insurance, home improvements and other outlays. The drawback is that, unlike a repayment loan, you will not pay off the loan by the end of the term and will still owe the initial amount borrowed.
Many mortgage providers are unwilling to support an interest-only mortgage without an acceptable repayment plan. Still, a mortgage broker like Loan Corp can help find a provider specialising in this type of loan.
Mortgages for professionals
Depending on your profession, a mortgage adviser at Loan Corp can help you find suitable mortgage lenders to help you climb up that daunting property ladder and get your perfect place on the Isle of Wight.
Let’s take the NHS, for example. While there is no NHS mortgage, several lenders are more accustomed to working with NHS employees and are open to offering special NHS discounts. As a mortgage broker, we can help you find mortgages which are part of the NHS mortgage scheme.
Guarantor mortgages
A guarantor mortgage is an option for prospective buyers whose credit score or income is insufficient to qualify for their own mortgage.
Many people looking to buy on the Isle of Wight are first-time buyers, driven from the UK mainland by rising property prices. If they have a relative (often a parent) willing to act as a guarantor, then we, as the mortgage broker, can help to find the right mortgage provider for your situation.
In this scenario, the guarantor will need to use a property they already own or their savings to guarantee the mortgage. It can be risky, but a mortgage adviser can guide both parties through this process.
Conclusion
Mortgages can be confusing; there are no two ways about it. Whether you are buying for the first time or the property is your business, finding the right mortgage for you with the right deposit and the lowest interest rates can be a real headache.
Mortgage brokers at Loan Corp can help you to understand all the corporate jargon and help you to get the best mortgage you can, so you can enjoy your new home, knowing you are one step closer to making it yours. Whether you’re a first-time buyer or are familiar with the process, we can promise you a hassle-free journey to property ownership.
If you need any free advice or want to start your application, contact us now.