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Mortgage Advice

Whether you are considering a mortagage for a new purchase, remortgage or further advance, we are here to offer a helping hand. As you can see, with so many different mortgage types available, it is important to have the right people to assist you.

We can provide you with the right mortgage advice to guide you through the different repayment options which include:

Repayment Mortgages (Capital and Repayment)

A portion of your monthly repayment will go to paying for the interest on the loan and some will go to repaying the capital you have borrowed. At the end of the mortgage term the loan will be fully repaid providing you meet all the repayments.

Interest Only Mortgage

With this method, your monthly payments to the lender only cover the interest on the loan. They do not pay off any of the amount you have borrowed. This is why you usually make separate payments into an investment or savings scheme to build up a lump sum. When the mortgage term ends (or earlier), you use the lump sum to pay off the amount you originally borrowed. It is your responsibility to make sure you have sufficient funds available to repay the loan at the end of its term.

Offset mortgages

The principle is simple: most mortgage borrowers also have savings, even if they are small, and using this money to cancel out mortgage debt makes sense. Savers avoid paying tax on interest that their deposits would otherwise have earned. And because offset mortgage lenders calculate interest daily, every pound on deposit works hard to reduce the cost of borrowing.

Types of Mortgage

There are also a number of options available for the initial pay rate. This normally takes the form of an introductory interest rate for a specified number of months or years. The benefits and draw backs of these are very different. The following is an explanation of the main types of introductory rates:

Standard Variable Rate

Your payments move up or down at the lender's discretion. The lender may not reduce, or may delay reducing their variable rate even if the Bank of England rate goes down.

Fixed Rate

A loan where the initial payments are based on a certain interest rate for a stated period and the rate payable will not change during that period regardless of changes in the lender's standard variable rate.

Tracker Rate

A variable rate loan with an interest rate that's equal to or a set amount above or below the Bank of England or some other base rate. It tracks (moves up or down with) that rate.

Discount

The mortgage interest rate is lower than the current normal standard variable rate for a certain period, usually shown as a fixed percentage reduction to the lender's normal variable rate eg. 2.00% discount for 2 years.

Capped

The mortgage interest rate will not exceed a specified value during a certain period of time, but it will fluctuate up and down below that level.

Speak to an adviser now on 0121 314 7707 or complete an Enquiry Form or Email us.