Mortgages are one of the largest single transactions in most people’s lives. Buying a property can be a stressful and time consuming experience; nowadays the financing of a mortgage is a case of finding and selecting the most suitable mortgage, rather than simply accepting a lender’s offer.
Hence we aim to simplify your home buying process whilst making suitable recommendations to meet your circumstance.
Repaying your mortgage
A mortgage has two parts. The original amount you borrow to buy your home (known as capital), and the additional amount the lender charges for lending you this money (known as interest). You can choose a Repayment mortgage, an Interest Only mortgage or a combination of the two.
- Repayment mortgages – your monthly payment is made up of capital and interest. As long as you keep up your payments, your mortgage will be paid off when your mortgage term ends.
- Interest Only mortgages – your monthly payment only pays the interest you owe. You’ll still have to repay the capital at the end of your mortgage term and must make sure you have a way of doing so.
Different types of mortgages
- Fixed rate – gives you peace of mind of knowing exactly what your monthly mortgage payments will be during the initial rate period.
- Tracker rate – tracks above the Bank of England base rate during your initial rate period so your monthly mortgage payments will only change if the base rate changes.
- Lifetime Tracker – tracks above the Bank of England base rate for the life of your mortgage term.
As a mortgage is secured against your home or property, it may be repossessed if you do not keep up the mortgage repayments.