Mortgages

Reviewing mortgages across the whole market place to arrange the best deals for you

A Mortgage is a loan to buy your home or commercial premises. You borrow money and pay it back with interest over a period of time (the ‘mortgage term’) that you agree with the lender – usually a bank or building society.

How much you can borrow will depend on your personal circumstances, such as your income, your outgoings, whether you’re buying alone or with a partner or the expected rental income if it’s a buy to let mortgage.

Your mortgage can be paid back by repaying the capital amount and interest during the term. Alternatively you can pay the interest only and arrange some other way to repay the loan.

There are several different types of mortgages available. There are standard mortgages, or more flexible mortgages like current account mortgages or offset mortgages. The flexible mortgages allow your current account and /or savings accounts to be linked to your mortgage. This means that the value of your accounts can reduce the outstanding balance on your mortgage and you can end up paying less interest.

There are also different types of interest rates available.   
  
Fixed Your payments and the interest rate are the same for a certain period, i.e. 2 years.

Tracker Your payments are variable and the interest rate is a set amount above or below a base rate.

Discounted Your payments are variable and the interest rate is set at less than the lender’s standard variable rate for a period of time.

Capped Your payments are variable and often linked to a base rate, but fixed not to go above a set level (the ‘cap’ or ‘ceiling’) during the deal period.

Collared Your payments are variable but won’t fall below a set level (the ‘collar’ or ‘floor’).

Standard Variable Your payments go up or down when the lender’s mortgage rate changes.

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