Mortgages
At ADS Mortgage Solutions, we offer mortgages from the whole market place, from high street lenders and online stores to exclusive broker products. Our bespoke software brings up a comparison table of all of our lenders.
We are able to offer you an unbiased service so that you can benefit from the best possible product for your needs.
Based on your circumstances, we will recommend the best product for you. And with us providing you with a mortgage, you can also benefit from our exclusive discounted interest rates and incentives which are not available through high street banks and building societies.
To discuss your borrowing needs and to find out the best product for you, please contact us.
Listed are some of the mortgages that we can help you with. Please click on each heading to get a brief summary of how they work:
Shared ownership schemes
Shared ownership schemes are developed through the co-operation of mortgage lenders, housing associations and local authorities.
- They are designed to help people on a low income who may not be able to obtain a more conventional mortgage
- They combine a mortgage payment to a lender with rent to a housing association or local authority
- The rent payment is kept as low as possible so that the total outgoings do not exceed the amount it could be if renting the property in the normal way
- Normally, 25 to 50 per cent of the property is purchased with rent paid to cover the remaining percentage
- Staircasing (the option to buy further shares in the property) is possible when the income is available to meet the demand of increased payments
- You are responsible for all property maintenance, except communal areas
- Stamp duty (land tax) is payable on the full price of the property
- Some schemes allow you to eventually own your property outright
- On sale of the property, if it is not owned outright, you may be required to offer the property back to the housing association or local authority, who will then find another suitable purchaser.
This is only a brief summary. To find out full terms, conditions and exceptions please apply online or contact us to find out how we can help you.
Equity share schemes
Equity share schemes allow you to have a lower rate of interest in return for the lender having a stake in your property.
- When the property is sold, the lender will take its percentage equity
- This scheme mainly appeals to first-time buyers, who may want to keep their monthly payments to a minimum
- A drawback to this scheme is that it may be difficult for you to trade up in the property market, as the lender takes its share of equity, reducing equity for you to use.
This is only a brief summary. To find out full terms, conditions and exceptions please contact us to find out how we can help you.
Right-to-buy
Right-to-buy enables a ‘secure’ tenant of a London Borough Council, a District Council or a registered social landlord to purchase their property at a discounted price.
If the property is sold within a certain period after purchase, some or sometimes all of the discount must be repaid.
Right-to-buy options differ from region to region. Whether you were a tenant before or after 18 January 2005 will also affect what applies to you.
This is only a brief summary. To find out full terms, conditions and exceptions please apply online or contact us to find out how we can help you.
Buy-to-let
A buy-to-let mortgage enables you to purchase a property for investment purposes ie, to let it out rather than for owner occupation.
- They are not regulated by the Financial Services Authority (FSA)
- Lenders may offset the risk of a rental property not being maintained or not being rented out by charging a higher interest rate (as demand for buy-to-let mortgages has increased, interest rates have fallen)
- Lenders do not usually use income multiples to calculate how much to lend a buy-to-let applicant
- The amount of mortgage advance calculated is often based on the monthly rental income being around 125 per cent of the monthly repayment
- Lenders may require that a reputable letting agent is used to manage your property’s tenancy.
This is only a brief summary. To find out full terms, conditions and exceptions please apply online or contact us to find out how we can help you.
Commercial mortgages
A commercial mortgage is where a loan is for a commercial property rather than a residential one.
- A commercial mortgage could be for a company, a partnership or an individual
- When a lender assesses the request for commercial lending, the status of the borrower and the viability of the lending request will be looked at
- If there is an intention to rent out the commercial property, the lender will assess the type of tenant, the lease length, the type of contract being offered and the ease of getting another tenant if necessary.
This is only a brief summary. To find out full terms, conditions and exceptions please apply online or contact us to find out how we can help you.
Sharia (Muslim) mortgages
ADS Mortgage Solutions can refer you to other businesses who can offer Muslim mortgages as we cannot do these ourselves.
Muslims wanting to buy property have a religious dilemma because Sharia law forbids the payment or receipt of interest. Sharia (Muslim) mortgages allow Muslims to raise finance without compromising their religion.
There are two types of Muslim mortgage available:
1) Ijara
- Here, the lender buys the desired property and then sells it to you for the same price under a ‘promise to purchase’ agreement, with the mortgage repayment spread out over a chosen term (up to 25 years).
- The lender is the registered owner of the property during the repayment period and you occupy the property under a lease arrangement, with a monthly amount of capital repayment and rent.
- Monthly payment is reviewed to allow for rent adjustments, which usually reflect changes in interest rates.
- At the end of the payment term, the property is then transferred to you. Early repayment is also possible.
2) Murabaha
- The lender is the registered owner of the property during the repayment period and you occupy the property under a lease arrangement, with a monthly amount of capital repayment and rent.
- Monthly payment is reviewed to allow for rent adjustments, which usually reflect changes in interest rates.
- At the end of the payment term, the property is then transferred to you. Early repayment is also possible.The lender buys the desired property at an agreed price, then sells it immediately to you at a higher price.
The price depends on the repayment term, which can be up to 15 years.
- As the property has been transferred to you, the property is registered in your name opposed to the lender’s.
‘Right-to-buy properties under local authority however cannot qualify.
With both methods, stamp duty (land tax) is only paid once, when the property is initially bought by the lender.
This is only a brief summary. To find out full terms, conditions and exceptions please contact us to find out how we can help you.
Equity release plans
ADS Mortgage Solutions can refer you to other businesses that can process equity release plans as we cannot do these ourselves.
1) Home income plan
- As a homeowner, you take out a mortgage on your home.
The maximum loan is typically 25-55 per cent of the property’s value, depending on your age
- The loan is covered by normal mortgage regulations and rules.
The capital released can be used; to buy an annuity (yearly grant allowance), invested in an income producing vehicle, or as capital to meet your needs
- You are entitled to stay in your property until you pass away
Once you pass away, your loan is repaid from the sale of the property.
- Younger people will not be able to borrow such a high percentage of the value of their property as older people.
For the majority of home income plans, no interest payments are made to the lender during your lifetime.
Interest is instead rolled up and repaid, with the original loan when the property is sold, when you pass away or when you move house.
This is only a brief summary. To find out full terms, conditions and exceptions please contact us to find out how we can help you.
2) Shared appreciation mortgages
This is similar to a home income plan, except that the rate of interest charged is reduced from a standard rate and in some cases, no interest is charged.
The lender however takes a share in any future increase in your property’s value.
This is only a brief summary. To find out full terms, conditions and exceptions please contact us to find out how we can help you.
3) Home reversion schemes
With a home reversion scheme, you sell part or all of your property in return for a capital sum.
The amount depends on the value of your property and your estimated life expectancy
- You enter into a ‘lifetime lease agreement’ with a provider, usually with an annual rent, which guarantees you lifetime occupancy
- The capital can be used as you wish, some schemes allow you to use the cash released to buy an annuity (yearly grant allowance) which can increase an individual’s income
- A home reversion scheme is not covered by mortgage regulations but they are regulated by the Financial Services Authority (FSA).
This is only a brief summary. To find out full terms, conditions and exceptions please contact us to find out how we can help you.
Foreign currency mortgages
With a foreign currency mortgage, the mortgage is in a foreign currency but secured on a property in the UK.
- Each mortgage payment is made in that currency, converted from sterling and the interest on the mortgage will be in the foreign currency
- Usually, there is a high minimum loan, typically £250,000
- Loans are usually available only on a repayment basis.
This is only a brief summary. To find out full terms, conditions and exceptions please apply online or contact us to find out how we can help you.
Renovation/self-build (stage payment) mortgages
A stage payment mortgage can be used to; buy a home for improvement, improve your current property, convert a building ie, a barn conversion or self-builds.
- The key to this mortgage for renovation purposes is to buy a property at a reduced price, typically at 75 per cent of the open market value
- A stage payment mortgage releases money at different stages of your property’s development
- The money can be paid to you in two ways, either at the start of each stage or in arrears
- When money is paid at the start of each stage, this ensures that you always have money to keep your project moving.
The stage payment mortgage will allow you to borrow up to 95 per cent of the cost to renovate/build your property.
This is only a brief summary. To find out full terms, conditions and exceptions please apply online or contact us to find out how we can help you.