A different approach
Mortgage UK was started in 2000 by Laurence Hughston who decided that the best way to build a successful business was to focus not on the business making money, but on saving the customer money. With this aim in mind he gathered together a few friends who also had experience in the mortgage industry and formed Mortgage UK
Not a charitable venture
This of course was no charitable venture, the aim was to have a successful business, but the focus was to be the customer. That is why what we offer to the majority of our customers is a fully managed mortgage service.
Of course, this doesn't suit everyone, so for those customers who are perhaps coming to the end of the mortgage term, we will offer a one off package, but only if it is in their best interest. We do charge a fee for our service, but you do get a lot of service for the fee!
Depending on how long your mortgage has left to run we will charge a fee to manage your mortgage for the rest of its life. By doing this we can afford to give you totally unbiased advice.
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From it's humble beginnings Laurence has continued to preach the gospel of "the more you help the clients, the more they will help us grow" so that today we have thousands of customerss on our database. A lot of the new work we do results from recommendations from these clients. In some cases whole families have joined us as the younger members have come to an age where they too wanted a mortgage, so they have followed their parents advice and asked for ours.
The cost of not caring
Of course many people can't be bothered. They have had their mortgage for a number of years, their current lender has always been good to them (i.e. taken their money every month!). It won't make a lot of difference any way so why go through all the hassle?
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Some figures to think of
Are they right? Well lets look at some figures.
If you are on the national average wage of some £26,151 you could easily have a mortgage of £104,600 or 4 times your salary. If you were to pay say 6.5%, an £86,000 repayment mortgage over 25 years will cost you 300 payments of £705.50, a total of £211,650.
The value of change
Since the millennium, discounts available have typically been in the region of 2% off the Standard Variable Rate (SVR). The trick is to manage your mortgage over its lifetime to keep on a discounted rate; this is where we come in, and the effects can be staggering.
Using this typical discount, we could expect that with costs* added, you would pay just £602.82 a month, a saving of £102.68. Do that 300 times, and you could save a total of £30,804 over the life time of the mortgage. If you have an interest only mortgage, this goes up to a staggering £89,481 or almost 4½ years of your take home pay! That's right, you could be working almost 4½ years for your building society for free! Almost 20% of your work for 25 years, given away!** What's more, this is before we start showing how to make even more savings on your mortgage.
* Costs for this example include £400 solicitors fees, £275 survey fee & a £499 lenders fee. Our one off charge to manage this mortgage through its lifetime is £1,990. This fee covers you for all further re mortgages we may arrange for you on any number of properties. The service is transferable should you move home It's quite likely that on a 25 year mortgage you can expect us to re mortgage you about 10 times - all this for just £1,990
** This is an illustration only, your own mortgage may well be different.
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