As Independent Financial Advisers and Mortgage Brokers, we offer totally unbiased ‘whole of market’ research using the latest
technology. This gives us ‘up to the minute’ data of thousands of mortgage deals, with many exclusive deals,
available only via a qualified mortgage adviser. By asking you some simple questions, we can define ‘Where you are now’ and ‘Where you
want to be’. Then using our knowledge and the tools available, we will find a selection of the most suitable solutions to satisfy your
needs. All our advisers and staff are fully qualified to the highest standard and are dedicated to continuing their professional
development. We aim to deal with as much of the paperwork as possible regarding any application submitted and strive to keep you
informed of the progress of your case right up to ‘offer’ stage.
For most people, a mortgage will be the biggest financial commitment they ever make so it is important that you make the right choice.
At first glance there seems to be a bewildering choice of different mortgage types and deals, with loads of different banks and building societies
and other finance companies all offering different mortgage deals.
Before you start looking at all the different mortgage offers you should acquaint yourself with the different mortgage types available and have a basic
understanding of how they operate.
Main mortgage options - the first choice you will need to make is how you choose to repay your mortgage, there are two basic options. A repayment mortgage
or an interest only mortgage which should be linked to a suitable investment to repay the mortgage at the end of the term.
Repayment Mortgage:
This is where the monthly payment you make to the lender pays the interest on the mortgage as well as paying some of the capital you have
borrowed. This type of mortgage gives you the security of knowing that at the end of the mortgage term you will have paid off the entire amount.
Interest Only Mortgage:
This is where you pay your mortgage lender the interest on the loan only, but do not pay anything of the sum borrowed. So at the end of the mortgage
term you would still owe the original amount you borrowed. Therefore with this type of mortgage you should have an additional investment plan that
will cover this payment. There are many options available such as Individual Savings Account (ISA) or Endowment, which should clear your mortgage
at the end of the term, but should be reviewed regularly to ensure they will achieve the required amount when you mortgage ends.
Once you have decided on the type of mortgage you require you then need to look at the interest rate options that are available.
Many lenders will allow a combination of Repayment and Interest Only, allowing you to set up your mortgage in the way that suits you best. One of our
trained Mortgage Advisers will help you to decide the most appropriate solution for you.
Standard Variable Rate:
This is the standard rate of interest that your chosen lender charges and can vary both up and down depending on market conditions and the Bank of
England base rate.
Fixed Rate:
The fixed rate mortgage as the name suggests offers a fixed rate of interest for a set period of time, which means that you know for the period of the
fixed rate exactly how much you will be paying every month. This is good if you are on a tight budget as you will have the security that your mortgage
payments will remain the same during this period. Fixed rate mortgages differ in length from one to ten years or more. One disadvantage of the
fixed rate mortgage is that if interest rates were to fall below the agreed rate during your fixed rate term you would still continue to pay at the
higher amount until your fixed rate term ends
Discount Rate:
With a discount rate mortgage you get a discount off the lenders standard variable rate for an agreed period of time. If interest rates go up or down
your payments will follow suit.
Capped Rate:
The capped rate mortgage offers the customer a guarantee that the mortgage rate will not go above a certain level (capped rate) for the agreed period
of time. However if interest rates fall your payment should also fall.
Cashback Deals:
This is not an interest rate option per say but is often combined with one of the options above. With this type of mortgage you will receive a cash
back payment when you take out the mortgage. These types of deals are particularly popular with first time buyers who may be short of cash for such
things as furniture. You should always be aware however that you do not get something for nothing, and there will oftern be cheaper deals out their
without a cash back option.
Flexible Deals:
This type of mortgage is designed for people who may want to vary the amount they pay back on their mortgage to varying degrees over time depending on
their circumstances. This type of mortgage is often popular with the self employed whose income can vary considerably over time. You can take payment
holidays and make overpayments. This type of mortgage is not usually recommended for first time buyers or people on tight budgets.
So which mortgage type do you go for?
This always depends on individual circumstances and we will listen to your requirements, attitude to risk and thoughts about future interest rates or
payment choice and select the most appropriate product from the entire market place and discuss in detail our findings and our reason for recommending
a mortgage deal that best suits your needs.
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