Mortgages are the largest single transaction in most people's lives
Buying a property can be a stressful and time consuming experience, although nowadays the financing of a mortgage is a case of finding and selecting the most suitable deal, rather than simply accepting a lender's offer.
Types of Mortgages
Tracker variable rate - Your payments change when interest rates fall or rise
Tracker rates are usually linked to the Bank of England base rate, which means they'll change in line with changes to the base rate.
Fixed rate - Gives you the security of knowing that your monthly payments are the same
You pay a fixed rate of interest for a set period, so you know exactly what you'll be paying each month even if interest rates change.
Offset mortgage - You pay less on your mortgage as your savings go up
Your main current account, savings account or both are linked to your mortgage. Each month, the amount in these accounts is offset against your outstanding mortgage before working out the interest you owe. You are unlikely to earn interest on your savings which are offset against your mortgage.
Hundreds of banks, building societies, and smaller niche lenders compete for your business, all offering a variety of interest rate deals, associated fees and other enhancements to attract borrowers.
When you choose a mortgage, you'll need to think about the repayment method, interest rate and special features. The best one for you will depend on your needs and circumstances, so it's important to understand your options.
We provide clear honest advice, which means we find the right mortgage and protection policies to suit your needs. We will ensure you understand the difference between the types of mortgages on offer and will give you honest advice on the best deal for you.
We believe that face to face advice is the best you can get. Meeting you, understanding your needs and aspirations, and having the time to talk through them with you, helps us to get the very best mortgage and protection products for you.
We've outlined some of the basics below, but our expertise is on hand to help you through the decision making process.
Mortgage repayment options
The way you repay your mortgage is important as you need to ensure the capital is repaid at the end of the mortgage term. When you speak to us, we will give you all the guidance you need to ensure the repayment method is appropriate to you.
The most popular option is a repayment mortgage (also known as capital and interest) and is the preferred option for most people.
If you have a repayment mortgage you'll make monthly repayments for an agreed period of time (known as the term) until you've paid back both the capital and interest.
With this type of mortgage, you have the benefit of knowing your mortgage balance will get smaller every month and that if you keep up the repayments your mortgage will be repaid at the end of the term.
In the earlier years the majority of your monthly repayment is made up of interest, however toward the latter part of your mortgage term the situation is reversed with the majority of your monthly payment reducing the amount borrowed.
The costs to consider
Whether you are buying a home or simply remortgaging, we will ensure you are aware of the related costs that are likely to arise - putting you in total control. The table below gives an idea of the likely charges you will need to consider. The actual costs will depend on the price of the property you're buying and the amount of deposit you can put down.
|Cost||First Time Buyer||Homemover||Remortgage|
|Mortgage arrangement / application fee|
|Valuation / survey fees|
|Homebuyer's survey (optional)|
|Early repayment charge (on existing property)|
|Estate agents fees|
|Solicitor / conveyancing fees (including Land Registry fees)|
|Reservation fee (new build homes only)|