Who might suit an April mortgage?

Are you looking for certainty and flexibility?

At April Mortgages, we offer longer-term fixed rates, without Early Repayment Charges if you move home. We will also lower the rate on your mortgage as you pay it off and reduce your debt. It’s a fixed rate, where the rate actually falls.

We think there are lots of borrowers for whom this combination of certainty and flexibility will be well suited.

Here are a few examples:

First Time Buyers

Rachel and Kayra have been working in their current jobs for a couple of years, they’ve saved like crazy for a deposit and have some financial help from their parents. They’re buying their first home together and stretching their finances more than they’ve ever been stretched! It’s why they want the peace of mind of fixed monthly payments.

They have discussed the possibility of starting a family at some point in the next few years so they may want to buy a bigger home now with more space, or sell their home nearer the time to live in an area with good schools and amenities for a young family.. But Rachel and Kayra are also in the growth phase of their careers and are conscious that they may need to move for work in the future.

An April mortgage means:

Rachel and Kayra may be able to afford a little more for the extra bedroom they might need in the future or be able to buy a nicer home in a better location nearer to shops and local amenities. That’s because we calculate how much a borrower can afford to borrow based on our longer term fixed rates rather than the Standard Variable Rate or much higher rate like many other lenders do;
Rachel and Kayra can borrow up to 95% LTV so they can start looking for their first home more quickly;
monthly repayments fixed for longer helps them to plan their finances with greater certainty and maybe even start to save a little when their repayments go down. That’s because the interest rate they pay may reduce as the balance of their loan reduces;
they have the flexibility they want to be able to move home if they need to without paying an Early Repayment Charge.

Next Time Buyers

Ramesh and Daisy have a 4-year old son called Ollie. They are looking to buy a larger home and are keen that it’s in the catchment area for their favourite primary school. However, this area is expensive and it means they will be stretching their finances at a time when their other household costs are increasing. So they need financial certainty. They might need more bedrooms in the future if their family grows, and they may want to move home again before Ollie is 11 so they can be in the catchment area for the best secondary school in the area.

Ramesh and Daisy are also building their careers and want the flexibility to be able to move house if they change jobs or if they want a home office in the future to support their hybrid working patterns.

An April mortgage means:

Ramesh and Daisy can probably afford a little extra for a larger home or a better location. That’s because we calculate how much a borrower can afford to borrow based on our longer term fixed rates rather than the Standard Variable Rate or much higher rate like many other lenders do;
Ramesh and Daisy know what their mortgage payments will be each month so they can plan with certainty for a much longer period;
we won’t charge an Early Repayment Charge when they move home. So Ramesh and Daisy can change jobs, and accommodate their growing family comfortably and flexibly without their mortgage getting in the way;
as their career progresses and they earn more or earn bonuses Ramesh and Daisy can make unlimited overpayments and lump sums and we won’t charge any Early Repayment Charges. What’s more, the interest rate they pay reduces as the balance of their loan reduces – even with their normal monthly repayments.

Next Time Buyer

Harry is a software developer whose skills are in high demand. He’s single and so happy to move home (with his dog Timothy!) to help him further his successful career. However, he isn’t happy to rent as he sees this as money down the drain and wants to accumulate wealth as a homeowner.

He follows the news on the UK economy and movements in interest rates but he doesn’t have the time or patience to keep moving his mortgage for better rates all the time. So he wants a mortgage that he can fix and forget but that also allows him the freedom to move home if he gets a good job opportunity in another location. Working in the tech industry he receives generous bonuses and he likes to use them to save money on his mortgage each year.

An April mortgage means:

Harry has the peace of mind knowing that his mortgage repayments are fixed at a fair rate without having to worry about chasing the best rate all the time;
we won’t charge any Early Repayment Charges if Harry wants to pay unlimited lump sums off his mortgage using his bonus. What’s more, the interest rate he pays reduces as the balance of his mortgage reduces – even with his normal monthly repayments – saving him thousands in interest;
Harry has the flexibility to move home and follow his career and we won’t charge any Early Repayment Charges.

Homeowners

Maya divorced just over two years ago and purchased a three-bedroom home as a fresh start for herself, her 21-year old son and 19-year old daughter.

She has recently started thinking about remortgaging and is shocked at how much her monthly payments will increase following interest rate rises. Having been through a turbulent period, she doesn’t want any more nasty surprises in her life and is keen to fix her rate so that she can be sure of her mortgage payments.

However, she is also aware that her circumstances may change in the future. Her son has started a new job and is thinking about moving out once he establishes his career and her daughter has just started university. There’s a chance that she won’t need such a large property in future years. She’s also hopeful of meeting Mr Right and aware that she may want to move in with a partner if she enters a new relationship.

An April mortgage means:

Maya has the certainty of knowing exactly what her mortgage payments will be each month;
she has the freedom to move home without paying an Early Repayment Charge;
there is an opportunity to reduce the rate she pays as she shrinks the balance of her loan.

Homeowners

Jeff and Sylvia are both approaching retirement and looking forward to a life where they have to work less hard. They are currently in the process of remortgaging their home and hope to pay off the balance as quickly as they can.

They may be able to pay it off completely if Sylvia is paid her regular bonus in the coming years, but this is uncertain in the current economic environment.

As well as this flexibility to pay off the mortgage, they are also concerned that their pension won’t stretch very far when they do retire and so they want certainty of knowing the maximum they will need to pay on their mortgage long into the future.

An April mortgage means:

Jeff and Sylvia have the ability to borrow into retirement;
they have certainty of knowing their monthly mortgage payments;
they have the opportunity to make overpayments and pay off their mortgage early without paying Early Repayment Charges.

Who might suit an April Mortgage?

Are you looking for certainty and flexibility?