Managing your Mortgage with KGJ
With the sheer number of mortgage deals and packages available, it is easy to be overwhelmed, especially when you’re making such a significant financial commitment. That’s why it is vital that you make an informed decision when taking out a mortgage, and KGJ will provide that service independently, without bias or sway to any mortgage provider.
Online mortgage calculators and price comparison sites make a very complicated process look easy, but are the deals they provide the best fit for your situation? Financial and personal well-being are closely linked, and getting the right mortgage is vital for your ongoing happiness. Mortgage advice and brokering with KGJ at your side ensures you are fully informed and happy to proceed at every stage of the process.
Get Impartial Advice
As fully independent financial advisors, we only focus on getting the best deals for our clients. Get in touch to find out more about our range of impartial mortgage advice services.
Our Mortgage Services
Adverse Credit Lending
Adverse credit lending is ideal for buyers with poor credit history. It often involves higher interest rates, stricter terms and increased risk for lenders due to previous credit issues.
Buy-to-let mortgages are loans used to purchase rental properties. They have higher deposits, different interest rates and are subject to landlord regulations. Financial and legal advice is essential.
Holiday Home Mortgages
Holiday home mortgages are loans used to finance second homes or holiday properties. They typically require a larger deposit, have higher interest rates, and may have strict eligibility criteria.
Lifetime mortgages allow homeowners aged 55+ to release tax-free cash from their property without selling it, with interest accruing over the loan's lifetime, unless (optionally) paid.
Residential mortgages are loans used to purchase or refinance a home. They typically have fixed or variable interest rates and can be repaid over a period of up to 35 years.
Short-term finance provides interim funding when purchasing a property. Short-term finance is typically used for renovations and offers temporary capital with higher interest rates and shorter repayment terms.
Why Choose Us?
Bespoke and Personal
Nothing beats having an expert by your side throughout your search for a mortgage. We won’t settle for anything less than the perfect solution for your situation.
KGJ has helped thousands of local homeowners get onto the property ladder in the last 50 years and our knowledge and experience of the mortgage market are second to none.
Once clients use us for mortgage advice and brokerage, they come back to KGJ again and again for remortgaging services, because they trust us with their financial security and well-being.
Mortgages, and financial advice in general, can be hard to comprehend at the best of times. But KGJ will cut through the jargon and technical terms and explain everything in plain English.
We’ve been privileged to provide our services to many different clients over the years. Here’s what just a few of them have said about working with KGJ.
You Have Honestly Been so Fabulous
I just wanted to say thank you so much for all your help, You have honestly been so fabulous and made the whole process so easy and so much less stressful. Thank you so much 🙂
Caroline has always been very helpful when I have needed advice.
I Will Have no Hesitation in Recommending KGJ and Anna
I would like to place on record my appreciation of Anna Burford’s efforts last Friday on my behalf. Due to pick up a new 1 litre Ford Fiesta from the dealers we called my insurer to do what we thought would be a simple task-change the car over. We were told that CIS could not insure the new car! They offered a ridiculously high price with another insurer. My husband called you and spoke to Anna who found out what we needed and quoted a much cheaper premium,which we accepted. I was able to drive my new car away safe in the knowledge I was covered. I now have my documents which are all OK. I will have no hesitation in recommending KGJ and Anna. Many thanks again.
I Trust You and Would Highly Recommend You to Others
Thank you for helping me out with my mortgage. I was in a very stressful situation but from the beginning you managed to make every decision an easy one. I seemed to bombard you with the simplest questions but you always had time for me and made it very easy to speak to you. You even went out your way to resolve any worries I had (I am a big worrier) and you kept me up to date at every stage. I trust you and I would highly recommend you to others (I already have). I can’t thank you enough. With sincere gratitude.
I'm Always Delighted with the Service
I’ve used KGJ as my insurance broker for over ten years, and I’m always delighted with the service they give. It’s so refreshing to be able to speak to a real person on the end of the phone who you feel does get to know you and your individual requirements over time. It may be a little more expensive than one of the Direct Line / Tesco / Compare the stuffed animal type of insurance companies… but it is worth every penny to have someone on your side when you need them.
My husband and I recently engaged the services of Jim Bodycote, KGJ’s financial advisor. As we requested, Jim undertook a full review of our pre-existing personal pensions. Having chatted about our future plans for our pension pots and carried out assesments to determine our acceptable level of investement risk, Jim went on to make sound recommednations for our pension plans going forward. We found Jim to be professional, knowlegeable in his field of expertise, friendly and very importanly, information was relayed to us jargon free. Follow up service has also been excellent. I would certainly recommend Jims services to others.
We have Received a Good Return on our Investments
Eight years ago we found ourselves in need of financial advice regarding investing our severance pay Jim Bodycote at KGJ was recommended by a friend . We find him very friendly, professional and approachable and he has given us sound advice always showing patience with our concerns and questions and we have received a good return on our investments.
Ian and Kim
Helpful, Knowledgeable, Thorough and Nothing is Ever Too Much
John is super professional and really trusted by our family who he has been advising for years. He is always very helpful, knowledgeable, thorough and nothing is ever too much of an ask. You know with John that he will give you the best possible advice and recommend what is most suited to your needs at the time. He along with the team at KGJ are brilliant!
Safe and Trustworthy
KGJ has looked after our business’s commercial insurance needs for many years. We have remained loyal to KGJ as we have always received a reliable service, good advice, and competitive products. We feel in safe and trustworthy hands with Stuart Pearson and all the team at KGJ.
We Don't Know What we Would do Without Him...
John has been our adviser for many years, not just for general financial advice and support but on many and diverse areas such as wills, pensions, investments, insurance, mortgages etc. Both for us and other members of our family. We are amazed by the quick response to enquiries, the virtual counselling and family advice and Johns lovely humour. Nothing is too much trouble. We trust John and admire his confidentiality when he is dealing with other members of our family who he also advises. In fact we don’t know what we would do without him.
Simon and Janni
We were fortunate to find KGJ soon after our move to Stourbridge in 1999 and we have been pleased by their efficiency and the quality of their advice. Financial advice and planning from John Donnelly has, in particular, been exemplary. John brings clarity and a down-to-earth approach to the assistance he gives, not to mention a good sense of humour. We know he will always respond promptly to questions or concerns and we feel able to trust that he will always give the best advice he can. John also looked after the payroll and pensions for the charity we worked for.
Jane & Kevin
Patient, Kind and Super-Efficient
John has been our financial advisor for a number of years, in fact, not only finance but in other areas as well, such as retirement, will’s and insurance. He is knowledgeable in many areas, patient, kind, friendly and super-efficient. We would not hesitate to recommend his services to friends and colleagues (and have done so on many occasions).
What Is a Mortgage?
A mortgage is a type of long-term loan that is used to buy a house or other property. It is an agreement between a borrower and a lender and is usually paid back, with interest, over a specific amount of time. The property itself acts as security, or collateral, on the loan, so the lender can sell the property to recoup their losses if mortgage repayments cease.
Mortgages generally have fixed or variable interest rates and are repaid over a term of between several years to several decades, depending on the agreement. The word mortgage itself originated in the late 14th century from the Old French ‘mort’ and ‘gage’, meaning ‘death pledge’, which sounds rather dramatic. While the word has stuck, mortgages have, thankfully, changed over the centuries.
This is a very common question, particularly among first-time buyers, as the mortgage market can be a complicated and overwhelming place for newcomers to the property ladder. There are myriad different mortgage types available, including some very niche and specialist offers, so here we’ve focussed on six of the most common types of mortgage:
- Fixed-Rate Mortgages: This mortgage type has a fixed interest rate for a set period, usually between two and ten years. This means that your monthly payments will remain constant for the duration of the fixed-rate period, regardless of interest rate changes.
- Tracker Mortgages: A tracker mortgage is linked to the Bank of England base rate (or a comparable benchmark rate), which means that your monthly payments can fluctuate in response to changes in that rate. Payments could go down, but they could also go up.
- Discount Mortgages: A discount mortgage provides a reduction on the lender's standard variable rate (SVR) for a set period, typically two to five years. This means that during the discount period, your monthly payments will be lower than the lender's SVR.
- Offset Mortgages: With an offset mortgage, you can link your savings and current account balances to your mortgage. This means that your savings balance is applied to your mortgage balance, thus reducing the amount of interest you pay.
- Interest-Only Mortgages: An interest-only mortgage requires payment only on the monthly interest of a mortgage, not the full amount. This type of mortgage is much less common and is only generally available to you if you have significant equity in your property.
The complexity of obtaining the correct mortgage deal and understanding the intricacies of each one is the main reason why taking out an ‘unadvised’ mortgage is discouraged at every level.
KGJ offer mortgage advice and brokering at an individual level, providing ‘advised’ mortgage services at every step of the process. No number of online calculators and forms can ever come close to matching the experience and dedication of a personal mortgage expert. Contact us to find out just how much we can do to find you the right mortgage.
You’re likely aware that applying for a mortgage requires certain documents to be provided to the lender, but these can vary between different providers. Here is a brief and non-exhaustive list of some of the documents you may need to have on hand:
- Identification: A valid government-issued photo ID, such as a driver's license or passport.
- Proof of Income: Three recent, consecutive pay slips or bank statements is often the norm.
- Proof of Income & Expenditure: Bank statements and other documentation that shows your regular income and expenditure, also including proof of your deposit if a purchase is taking place.
- Credit Report: Lenders will usually check your credit report, but you may want to obtain a copy and check it yourself for errors or potential issues.
- Debt Status: Information about your outstanding debts, such as credit card balances, personal loans or car finance.
- Property Information: If you've already found a property, you may be required to provide information such as the address, purchase price and any EPC details. Sometimes a better EPC will allow for a cheaper rate.
At KGJ we will always keep you fully appraised of which documents you will need to produce as the mortgage process proceeds.
The amount you can borrow will depend heavily on your circumstances, including your deposit amount, your wage and the realistic amount you can repay every month. Lenders will ultimately determine how much they are willing to lend you for a mortgage by assessing your financial situation and risk profile. These are just a few of the factors that lenders may take into account:
- Credit Score: Credit scores are typically used by lenders to determine your ‘creditworthiness’. A higher credit score generally indicates that you have a good track record for making repayments on time, which can increase your chances of being approved for a mortgage and receiving a favourable interest rate.
- Debt-to-Income Ratio (DTI): Lenders will look at your DTI, which is the percentage of your monthly income that goes towards debt repayment. A lower DTI indicates that you have more money (disposable income) to pay for your mortgage and other expenses.
- Employment History and Income Stability: Lenders prefer to see that you, and anyone else on the application, have a consistent job and income history, as this indicates that they will be able to make regular mortgage payments.
- Deposit: For a mortgage, lenders typically require a deposit, and the size of the deposit can affect how much the lender is willing to loan. A larger deposit can reduce the amount that an individual needs to borrow against the value of the property, making them a more appealing borrower.
- Property Value and Type: The lender will also consider the property's value and type (apartment, terraced house, detached house, etc), as these factors can affect the mortgage's loan-to-value ratio (LTV). Several things are taken into account in this respect, however, the general condition of the property, recent sales in the area and any potential future issues at the property will be taken into account when assessing a property’s value. If a property is down-valued below the purchase price you are purchasing for, you may be required to add the additional funds yourself to make up the shortfall.
At KGJ we are here to listen and understand, as well as to explain and procure, so any worries or issues you may wish to discuss before submitting a mortgage application will always be treated with the strictest of confidence and will also aid us in securing you the right mortgage from the right provider, greatly increasing your feelings of financial security and peace of mind.
In simple terms, a mortgage is a type of loan used to purchase property, most commonly a house. With a mortgage, if you default (fail to keep up payments) on the loan, the lender can repossess your property, as the property itself is used as the security (collateral) on the funds. Mortgage repayment terms are typically longer than those of other types of loans, ranging from 15 to 30 years and occasionally even longer, and include interest.
A loan, on the other hand, is a broader term that refers to any money borrowed from a lender that is required to be repaid over time, frequently with interest. Loans can be secured or unsecured, and they can be used for a variety of purposes, including car purchases, education expenses and debt consolidation. Loans, unlike mortgages, may not require collateral and may have shorter repayment terms, depending on the type of loan and the terms of the lender.
When you rent, you are paying money to a third party, such as a landlord, to live in your property, and you don’t get any of that money back. In contrast, repaying a mortgage is essentially the same as repaying a long-term loan, but with the loan used to buy (and secured against) a property. Therefore, when you sell that property, depending on how much of the mortgage amount you have repaid, a portion of the sale fee will come back to you.
In very basic terms, renting could be described as paying for a service, while taking out a mortgage is more of an investment.
An Agreement in Principle (AIP) is a lender's conditional approval for financing based on your creditworthiness, income and general financial situation. It essentially means that the lender has looked at your circumstances and determined the maximum amount they are willing to lend you for a mortgage.
Generally, you need to provide information about your income, employment status, credit score, which will normally be a soft credit check, and debt situation to your lender to obtain an AIP. After reviewing this, the lender may issue an AIP certificate outlining the terms of the mortgage. This will allow the estate agents you are purchasing from to evidence that they have seen your ability to borrow the amount of loan that you need, along with proof of the deposit that will be necessary.
Agreements in Principle can be great for you as a homebuyer because it gives a clearer understanding of what you can afford and allows you to shop for a property within your budget. Just remember that an AIP is not a mortgage guarantee, and you must still go through the usual application process before the loan is finalised.
Yes, it is possible to pay back a mortgage early but, there may be some fees associated with doing so, depending on the terms of your mortgage agreement. If you want to pay back your mortgage early, you should check your mortgage agreement to see if there are any early repayment charges (ERCs). ERCs are fees that lenders may charge if you pay off your mortgage early or make additional payments above a certain amount. ERCs can vary depending on the lender and your specific mortgage agreement.
If you decide to pay off your mortgage early, you should talk to your lender about your options. Depending on the terms of your mortgage agreement, you may be able to pay off the mortgage faster by making a lump sum payment or by increasing your regular monthly payments. When possible, paying off your mortgage early is a popular move as it can save you money on the interest charges that accrue over the life of the loan.
If you are considering repaying your mortgage early, you can contact KGJ for advice on what the best use for your money is and how to best go about setting up the early payment to your lender.
At KGJ, we know how frightening it can be if you find yourself in a situation where it gets harder or impossible to keep up with your agreed mortgage repayment plan. Consequences can include, but are not limited to, the following:
- Late Payment Fees: If you miss a mortgage payment, your lender may charge you a late payment fee, which can add to your financial woes.
- Default: If you miss multiple payments, your mortgage will go into default. This means you have failed to meet the terms of your mortgage agreement and your lender may take legal action against you.
- Repossession: If you continue to fall behind on your payments, your lender may initiate repossession proceedings. This means they can seize your property and sell it to recoup their losses.
- Damage to Credit Score: Failure to make mortgage payments on time can severely harm your credit score. This may make it difficult for you to obtain credit in the future, and if you do, the interest rate may be higher.
- Financial Hardship: You may face financial hardship if your home is repossessed because you will have to find a new place to live and may owe a shortfall if the sale of your home does not cover the outstanding mortgage
This is not a situation anybody wants to find themselves in, but should it happen, KGJ is on hand to offer you financial advice on how to best deal with the situation. It's vital to communicate quickly with your lender if you're struggling to make your mortgage payments, as they may be able to offer you an alternative repayment plan to help you avoid default and repossession.
The UK government also supports several schemes to help struggling homeowners including the Mortgage Rescue Scheme, Support for Mortgage Interest, and the Homeowners Mortgage Support Scheme. If you are struggling to make mortgage repayments, it's important to act as soon as possible to avoid making your situation worse. If you need help, KGJ is just a phone call away.
Other Main Services
For over 50 years, KGJ has been providing businesses of all sizes with independent, unbiased and affordable commercial insurance solutions. With access to a wide variety of insurance products, KGJ will find the right policy to meet your needs.
Saving for the future can bring a great sense of stability and peace of mind to your financial security. Ensuring you obtain honest, professional and tailored advice when investing your money is an essential process that the experts at KGJ will provide.
KGJ provides individuals with personal insurance across a wide range of services. With a collective 100 years of experience across our dedicated personal insurance department, whatever cover you need, we will be by your side throughout.
Timely pension planning is fundamental to a happy and fulfilling retirement. Choosing the right pension scheme from the bewildering number available is vital for your financial wellbeing – and KGJ is here to ensure you secure the right scheme for your specific needs.