We look at a Mortgage being the biggest financial commitment you will make in your lifetime, and with thousands of products available within the mortgage market place, it makes good financial sense to get advice from a mortgage adviser who can access the market and shop about for the best product to suit your needs and circumstances this could save you not only time but money.
There are many types of mortgages available on the market and it can be confusing to know which one is right for you, so we have outlined the basics below.
With this type of Mortgage, you repay part of the amount borrowed together with the interest being charged each month. In the earlier years of your Mortgage, the majority of your monthly repayment is made up of interest.
However, towards the latter part of your Mortgage term, the situation is reversed and the majority of your monthly payment will deduct from the amount borrowed.
With this type, you are only paying interest each month. This means that although your payments will be lower, the amount you borrow (the capital) will still be outstanding at the end of the Mortgage term. You will need to have credible repayment vehicle to pay off the capital outstanding, such as an Individual Savings Account (ISA) or other suitable savings or investment vehicle, to avoid the property having to be sold, this type of mortgage borrowing is getting harder to get agreed by lenders for residential mortgage lending.
Residential Mortgages are secured against the property you own that will be your main residence or a second home, it is mainly only available on a Capital & Interest Repayment Mortgage. Subject to status some lenders may consider an Interest Only mortgage provided you and your exit repayment vehicle meets the lenders criteria.
Mortgage secured against an investment rental property that you do not live in or use to live in and have converted to a Let to Buy mortgage, apart from the purpose of the mortgage, the main difference with a Buy-To-Let Mortgage is that the lender will use the rent you will receive for the property to assess affordability. Most lenders will also want evidence of the landlord’s personal income to make sure the mortgage payments would be affordable during any rental income voids.
We have access to many exclusive deals from many different lenders, some of which may be lower than the products that lender may offer if you go direct to them.
Our expert mortgage adviser will be able to let you know what the latest exclusive deals are and whether they fit with your personal circumstances.
With this product typically lenders offer only existing borrowers once their initial product interest expires.
Each lender has their own SVR some are higher pay rates than others, with this type of rate, your payments should rise and fall in line with the Bank of England base rate changes, but not necessarily at the same time.
Fixed rates give you the security of knowing that your monthly payments will always be the same. With this type of mortgage, you pay a fixed rate of interest for a set period typically over two, three or five years but many lenders offer longer term fixed rate terms.
Tracker variable rates are usually linked to the Bank of England base rate, which means they will change in line with this, so if the Bank of England base increases the tracker variable rate increases or if the base rate decreases the tracker variable rate will decrease .
With a Capped Rate Mortgage, similar to a fixed rate product you will know what your maximum monthly payments could be for a set period of time, a variable rate, but the lender offers you a cap on the interest rate you will pay for a set period of time, so if interest rates increase the variable will only ever go as high as the preset capped rate typically these products are two or three years terms on the capped rate.
Allows you to benefit from a discount on the lender’s standard variable rate. If the lender’s standard variable rate (SVR) increases or decreases, so does the discounted rate. Typically, the shorter the discounted period the larger the discount.
Typically, a current account, savings account, or both, are linked to your mortgage and, each month, the amount in these accounts is then offset against your outstanding mortgage. You are unlikely to earn interest on your savings which are offset.
You can vary the amount you pay each month and take payment holidays in some circumstances. It may help to reduce your mortgage with lump sum payments without incurring an early repayment charge.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.
Dave had exceeded all expectations in every aspect. The service was always honest, friendly and explained in a manner that made the process very easy. Any questions which we had and continued to ask Dave, was never too much trouble for ...
I could not have asked for a better service. Everything was explained to me by Dave Clark, and never rushed me in any way, and if i didn’t understand, time was not a problem, Dave would stay ’till I did. ...