Barclays

Mortgage quote

What is a mortgage quote?

There are many different types and structures of mortgage available. In order to get a good quote you need to understand which ones are most appropriate for you.

You may also want to see our guide to general mortgage advice.

How to use this guide

Each section of this guide explains different aspects of mortgages and how to get a quote.

• Step one: your personal circumstances. These will determine which type of mortgage might be right for you.
• Step two: the purpose of the mortgage. The type of mortgage you take out will depend on whether you intend to live in the property or rent it out to others.
• Step three: types of mortgage structure. This helps you understand the different types of mortgage structure.
• Step four: information you may need to provide. When getting a mortgage quote you will need to provide some further information.
• Step five: ask for a mortgage quote.

Your personal circumstances

UK citizen living in the UK and buying in the UK
You can consider 'buy-to-let', 'foreign currency', 'overseas investment', 'primary residence' and 'remortgage'.

UK citizen living in the UK but buying in Jersey, Guernsey, Isle of Man or Gibraltar
You can consider 'foreign currency', 'offshore' and 'international investment'.

Non-UK citizen buying in the UK
You can consider 'buy-to-let', 'foreign currency', 'international student', 'offshore', 'primary residence' and 'remortgage'.

UK citizen living overseas and buying in Jersey, Guernsey, Isle of Man or Gibraltar
You can consider 'foreign currency mortgage' 'offshore mortgage' and 'investment mortgage'.

Residents of the Isle of Man, Guernsey, Jersey and Gibraltar buying locally
We can help you find the mortgage that's right for you.

The purpose of the mortgage

Buy-to-let mortgages for property investment in the UK
If you are buying a property in the UK to let out to tenants, then you will need a buy-to-let mortgage.

The size of the mortgage that you can get will depend on the rental revenue that the property is likely to generate. Generally speaking, the rental return will need to be at least 125% to 135% of the net monthly interest payments. The deposit on a buy-to-let property will be relatively high - starting at about 40%.

Find out more about our investment mortgages.

Currency mortgages
With Barclays International you can consider taking out a mortgage in one of a number of currencies. This will enable you to match the currency of the mortgage to that of your salary or income.

However, if a foreign currency mortgage is taken against a UK property, the relative size of the loan compared to the value of the property can be adversely affected by exchange rate movements.

Find out more about our currency mortgages.

International investment property or second home
If you want to buy a property outside the UK either as a second home or to rent out to tenants, then an international investment mortgage could be ideal.

Find out more about our investment mortgages.

International student mortgage
Most students coming to the UK may find it difficult to get a mortgage. A Barclays International student mortgage takes into account the overall financial status of the student and their parents.

Find out more about our UK student mortgages.

Offshore mortgage
Barclays International can place mortgages in offshore jurisdictions such as the Isle of Man.

Offshore status can be applied to most mortgage types and structures. However, you may not benefit from an offshore mortgage if, for example, you are a British citizen. So you will need to seek professional tax advice.

Barclays International is happy to make introductions to our preferred tax advisers, Ernst & Young.

Primary residence mortgage
This is used to buy the property that will be the main home for you or a member of your family.

With Barclays International you may be able to take out this mortgage in a currency other than sterling and place it offshore.

Find out more about our UK mortgages.

Remortgage
A remortgage is put in place when you take out a new mortgage to pay off an old mortgage from another provider.

Types of mortgage structure

Having established the purpose of your mortgage, you need to decide what mortgage structure best suits you.

Fixed rate mortgage
The interest rate charged on a fixed rate mortgage does not change from month to month. Most fixed rate mortgages apply to the first two to five years of the mortgage term. However, some Barclays International clients may be able to get a longer fixed rate term.

If you do get a fixed rate mortgage then you need to be aware that at the end of the fixed term the mortgage payments might increase.

Find out more about our fixed rate mortgages.

Variable rate mortgages (subject to availability)
Tracker, discount, capped and standard variable rate are the main types of variable mortgage.

Standard variable rate
Our standard variable rate (SVR) mortgage is flexible and usually follows the Bank of England base rate of interest. So if the base rate goes up by 0.25% then the SVR will probably also increase by 0.25%.

With the Barclays International SVR there are no arrangement or early repayment charges. As a result it is especially popular with clients who have low-value and short-term mortgages.

Discount rate (subject to availability)
This is a discounted version of the SVR. In most cases it applies to the first two to five years of a mortgage. If you are a first-time buyer this can be attractive because the monthly payments are relatively low during the discounted period. But you should bear in mind that the mortgage will revert to an SVR at the end of the discounted period and your payments may increase as a result.

Tracker mortgages
The interest rate of a Barclays International tracker mortgage follows the Barclays Bank Base Rate (BBBR) but can vary from this.

Often, there are no early repayment charges with this mortgage, so you can make large or early repayments.

Find out more about our tracker mortgages.

Capped mortgage (subject to availability)
This is a variable rate mortgage but with a maximum interest rate. This means that you know in advance the greatest possible cost of your interest charges.

Mix & Match mortgages
You might be better off with a combination of part tracker rate mortgage and part fixed rate mortgage. A Barclays International Mix & Match mortgage gives clients exactly that opportunity.

Find out more about our variable rate mortgages.

Repayment mortgage
With this structure your monthly payments repay the capital borrowed as well as covering the interest.

Interest-only mortgage
An interest-only mortgage has the benefit of lower monthly payments because it does not repay the capital borrowed. As a consequence you need to make separate arrangements to pay back the loan.

While the Barclays International specialist mortgage team is happy to provide as much information as possible, we recommend that you get independent financial advice in order to understand the risks involved with an interest-only mortgage.

View our current interest rates that apply to our mortgages.

Information you may need to provide

Now you should have a better idea of the purpose of the mortgage and which structure best suits you. The next step is to provide some information about yourself and the property you want to buy.

Value of the property and loan amount required
The mortgage adviser will need to know how much deposit you have and how much capital you need to borrow. The bigger the deposit that you can put down on the property, the more mortgage options that are likely to be available to you.

Purpose of the mortgage
An investment property or second home will have a higher minimum deposit requirement, usually from 40% upwards. The minimum deposit for a residential property will depend on your circumstances but can be as low as 15%.

Other details
Your mortgage adviser will also need to know:

• If you have you found a property you want to buy. This makes it much easier to determine which mortgages might be available.
• If you are a first-time buyer. Some mortgages are designed specifically for first-time buyers, so this will also help the adviser to find the right mortgage for you.
• What proof of income and credit history do you have? Barclays International is well placed to offer clients more options than they might have elsewhere. This is because many lenders will not offer mortgages to people buying a property outside their country of residence. Barclays International may be able to offer this option.

Please note: Barclays International provides mortgages for property purchases in the UK, Jersey, Guernsey, the Isle of Man and Gibraltar only.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

If your loan is denominated in a currency other than sterling CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.

For more information or to apply

To apply or find out more information speak to a Barclays International Mortgage Adviser. We specialise in providing a range of residential/investment mortgages for property purchases in the UK, Jersey, Guernsey, Isle of Man and Gibraltar.

Call us on +44 (0)1624 684305†

Alternatively please contact your Barclays International Relationship Manager, if you have one.