When you apply for a mortgage we help you to make an informed decision about which mortgage is most suitable for your circumstances. We advise on both large mortgages over £500k and 75% loan to value mortgages or less. This will depend on an assessment of your income/outgoings and how quickly you are able to repay your mortgage. The majority of mortgages are based on a 2, 3 and 5 year repayment term.
We explain the options to choose from below:
Pricing options |
Fixed rate mortgages
- Monthly repayments stay the same each month giving you security and certainty
- Can be flexible to allow you to repay more quickly over time
- Two year fixed rates most popular in UK
- More expensive than tracker options but are less risky and more predictable
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Tracker mortgages
- Mortgage repayment will vary according to changes in the Bank of England base rate and not the lenders Standard Variable Rate (SVR)
- Flexible and can be arranged without early repayment charges
- Cheaper than fixed rate mortgages but are less predictable.
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Structure
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Discounted rates
- Linked to lender’s standard variable rate (SVR) which moves up and down at the lenders discretion
- Not linked to changes in Bank of England base rate but changes in lenders variable rate
- Lenders will not always pass on any savings made but will often pass on increased rates
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SVR
- Default lender rate for when mortgage term expires
- Rates are rarely competitive and do not offer value for money compared with market rates
- The lender is not obligated to pass on cost savings if rate goes down
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Repayment options
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Repayment
- Provides most secure plan for paying off your mortgage with a set time
- This payment covers the interest of the loan as well as some of the debt
- Interest owed will decrease over time as the period of the loan matures
- Cost effective and reliable
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Interest only
- Monthly payment only
- High risk
- Covers only the interest on the loan, not its repayments
- You must be able to meet the full repayment of the mortgage at the end of the term
- In order to repay an interest only mortgage you may need another financial product such as a pension, ISA, investment portfolio or trust.
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