Mortgages

A FRESH APPROACH TO MORTGAGES

SPEAK TO ONE OF OUR EXPERT MORTGAGE ADVISERS…

Fresh, Friendly Mortgage Advice
As a leading mortgage broker, we can find the right mortgage suitable to your individual needs. Our mortgage experts can help you finance a new home, buy for the first time, buy a property to let out or remortgage your existing property. We can search the whole of the UK mortgage market and find you the right mortgage from 1,000s of deals available.

MORTGAGES NEEDN’T BE A PAIN…

With us, remortgaging can be very quick and simple to arrange. One of our expert mortgage advisers will help you through the process step by step working out how much you can borrow, how much it will cost and what type of mortgage may be most suitable for you. They will even take care of all the paperwork for you, so you don’t need to worry about a thing.

MORTGAGES EXPLAINED:

REPAYMENT MORTGAGES

With this type of mortgage (also known as capital and interest) you repay part of the amount borrowed together with the interest being charged each month.
In the earlier years, the majority of your monthly repayment is made up of interest, however towards the latter part of your mortgage term the situation is reversed with the majority of your monthly payment reducing the amount borrowed.
If you do not keep up with your monthly repayments lenders could repossess your home.

INTEREST-ONLY MORTGAGES

With this type of mortgage you are only paying interest each month.
This means that although your payments will be lower, the amount you borrow will still be outstanding at the end of the mortgage term. You’ll need to make alternative arrangements to pay off the mortgage to avoid the property having to be sold, such as taking out an ISA.
If you do not keep up with your monthly repayments lenders could repossess your home.

FIXED-RATE MORTGAGES

Fixed rates give you the security of knowing that your monthly payments are the same. With this type of mortgage, you pay a fixed rate of interest for a set period typically over 2, 3 or 5 years, so you know exactly what you’ll be paying each month even if interest rates change.

Benefits
• Offers you the security of knowing exactly how much you will be repaying during the fixed rate period
• Makes budgeting easier
• Security of knowing that if interest rates do rise, your monthly repayments won’t rise

Drawbacks
• Early repayment charges are likely to apply
• You are likely to pay a booking fee or arrangement fee

If you do not keep up with your monthly repayments lenders could repossess your home.

STANDARD VARIABLE RATES

Take the rough with the smooth. With this type of rate your payments should rise and fall in line with the banks own rate changes. You will almost certainly be paying a higher interest rate. Most borrowers are transferred to their lender’s standard variable rate once their initial incentive rate period comes to an end.

Benefits
• They are simple to understand
• There are often no early repayment charges
• Usually free to make unlimited overpayments

Drawbacks
• The monthly repayments on your mortgage may rise rapidly if interest rates rise
• Unpredictability of interest rates movements may make it hard to budget
• Banks own rate, not controlled by the Bank of England

If you do not keep up with your monthly repayments lenders could repossess your home.

TRACKER VARIABLE RATES

Usually linked to the Bank of England
Your payments change when interest rates fall or rise. Tracker variable rates usually offer an initial incentive, typically two or three years. For example, the interest rate payable may be set a small percentage above the rate being tracked for an incentive period. At the end of this period you will usually revert to the standard variable rate.

Benefits
• They generally offer an initial incentive rate which is lower than a fixed rate mortgage over the same period
• Some trackers offer the option of switching to a fixed rate deal with the same lender without having to pay the early repayment charges, which would otherwise apply to the tracker rate mortgage

Drawbacks
• If the rate being tracked increases, your interest rate and monthly mortgage payments will also increase, which can make budgeting more difficult
• Some tracker variable rates come with a collar – this means the rate you pay never falls below a set level e.g. a rate tracking the Bank of England Bank Rate + 1% with a collar at 1.5% means that even if the Bank Rate falls to below 0.5%, you will never pay less than 1.5%.
• Early repayment charges are likely to apply for at least the term of the initial incentive tracker period
• There is generally an arrangement or booking fee payable
• After the initial period ends, you will usually revert to the standard variable rate

If you do not keep up with your monthly repayments lenders could repossess your home.

DISCOUNT VARIABLE RATES

Allows you to benefit from a discount on the lender’s standard variable rate. If the lender’s standard variable rate (SVR) increases or decreases, so does the discounted rate. For example, if the lender’s SVR is 3.5% and they offer a discount of 1.5% for two years, you will start off by paying 2.0%. If the lender’s SVR increases to 4.0% after 6 months, you will pay 2.5%. Typically, the shorter the discounted period the larger the discount.

Benefits
• You can make a saving on the lender’s standard variable rate
• If the lender’s standard variable rate falls, you will benefit from a similar fall in interest rate

Drawbacks

• If the lender’s standard variable rate rises, so does your monthly payments which can make budgeting difficult
• There is an element of uncertainty
• The lender may increase their mortgage rates independently to any changes to the Bank of England base rate
• Early repayment charges are likely to apply for at least the term of the discount period
• There is generally an arrangement or booking fee payable, your adviser will let you know what these are before you go ahead
• After the discount period ends, you will normally have to pay the lender’s standard variable rate – so there may be a large increase in your monthly payments

If you do not keep up with your monthly repayments lenders could repossess your home.

CAPPED RATES

You will know the maximum you will pay for a set period of time. This type of mortgage offers you the option of knowing the maximum monthly repayments you would have to make during a set period, typically 2 or 3 years. But gives you the benefit of lower monthly payments if interest rates reduce.

Benefits
• Offers you the security of knowing the maximum you could be repaying during the capped rate period
• Makes budgeting easy
• You could benefit from a reduction in interest rates

Drawbacks
• Early repayment charges are likely to apply for at least the term of the capped rate period
• There is generally an arrangement or booking fee payable for a capped rate mortgage
• After the capped rate period ends, you will normally have to pay the lender’s standard variable rate – so there may be a large increase in your monthly repayments

If you do not keep up with your monthly repayments lenders could repossess your home.

YEARS EXPERIENCE IN THE FINANCIAL INDUSTRY

YEARS TRADING HISTORY

CLIENTS HELPED OVER THE PAST 10 YEARS

Speak to one of our specialist advisers today…

FREE NO OBLIGATION ADVICE

Your information will only be used to talk to you about your requirements.
We do not sell or pass on your information. Everything is in the strictest confidence.