There’s a minefield of mortgages out there. I’ve listed a few here, but I suggest dropping me a line or passing on your name and number so I can call to go through all of the options available.
Repayment mortgage:
You pay interest to the lender each month plus a little off the mortgage. So if you have a 35-year mortgage, in 35 years’ time you’ll no longer have a mortgage.
Interest only mortgage:
You are only paying interest, so no capital is being paid off. For example, if you borrow £150,000 over 35 years, you’ll pay the interest each month but after 35 years you’ll have to pay back the full amount £150,000
Length and terms:
Service provided is advice & recommendation to determine how long the term should be.
Fixed rates:
Your monthly mortgage payments will be fixed for a set period of time, typically for two, three, five or even ten years. This gives you peace of mind that payments will stay the same over that chosen period.
Tracker rates:
This tracks the Bank of England Base Rate, which means your monthly payments could go up or down over your chosen period.
Standard Variable Rate (SVR):
Generally when your product finishes you will automatically go on the lenders Standard Variable Rate. This rate can go up or down and the lender can change this at any time. Generally they would change this when the Bank of England change their rate. However, this is not always the case, so it is an unpredictable rate.
Offset mortgages:
An offset mortgage works by 'offsetting' your savings to your mortgage. You then only pay interest on the slice of debt above your savings balance. This reduces the amount of interest you are charged, allowing you to pay off your mortgage sooner or reducing your monthly mortgage payments, which ever one you choose. This could potentially save you thousands in mortgage interest over the term of the mortgage.
Buy To Let mortgage:
This is a mortgage for a property you want to let to tenants. Lenders use a rental income calculation to find out how much you can borrow and use that to determine whether you can get a mortgage. Many lenders also like to see an income as well.
Let To Buy mortgage:
If you want to move house but you’re struggling to sell your current home you may have an option to let it out and purchase onwards, keeping your current home.
Exclusive rates:
Some lenders also offer exclusive rates only given through brokers, which can offer cheaper set up fees and better interest rates. Lending criteria applies.
There are other types of mortgages which I can discuss, but the above are the main types.
It’s very difficult for anyone to keep up with all the lenders rate changes and lending criteria changes, that’s where I come in! As a broker I have access to some systems that allow me to keep up to date with any rates that may come onto the market and also ones that may be ‘pulled’ (taken off the market) giving me an opportunity to jump on a rate before it disappears.
The Financial Conduct Authority does not regulate some forms of Buy to Lets.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
