Independent
mortgages advice.
When you purchase a house
this is usually the largest financial commitment that
you will make.
Most people can not afford
to buy their home outright so will require a mortgage.
Mortgages come in many forms
and it is important that you choose the right type. There
are now thousands of different mortgage deals available
in the UK market place, so to enable you to choose the
mortgage that it right for you it is best to receive
qualified independent advice.
If you are looking for independent
advice on mortgages try
this company, they will introduce you to totally independent
mortgage advice companies
who will work with you to find the right deal for you.
The FSA now regulates the
mortgage industry (see
FSA) which covers most mortgage types, see their
web site for full details.
Independent mortgage advice can help
you make sense of the many different home loans available
today in the UK market. Taking out a mortgage is one of
the biggest financial decisions you will make and with
a wide range of options to choose from across the market
it can be difficult to decide which type of mortgage deal
is going to be right for you. We have listed the main mortgage
types below with a breif description. This should be used
for information only and professional mortgage advice should
be sort.
Standard Repayment Mortgages
A repayment mortgage guarantees your loan is paid
off in full at the end of the agreed term. With a repayment
mortgage you make monthly payments that cover both the interest
on the loan and the repayment of
the loan itself. A repayment mortgage offers the reassurance
that once the final payment has been made you will have paid
off the mortgage in full.
Fixed rate Mortgages
A fixed rate mortgage
is a mortgage with an interest rate that is set for
a predefined period of time. The
benefit of this feature is that it is possible to budget
effectively, as you will know exactly what you will have
to pay on your mortgage for the whole period that the fixed
rate applies. It is important to be aware that some
fixed rate mortgage products may involve an extended tie-in
period beyond the fixed rate period, where you may have to
remain with the lender and pay at their standard variable
rate for a period of time or
suffer
an early repayment charge should you wish to move your mortgage. Interest only Mortgages
An Interest Only Mortgage
is one whereby your monthly payments consist solely of interest
payment and not any capital repayment
element. These are therefore offer cheaper monthly payments,
however you must have some other means of paying off the
mortgage. I.e. if you borrow £150,000 and pay interest
only over 20 years, you will still owe £150,000 after
20 years of payments. Interest only mortgages have been popular
with first time buyers strugling to get on the housing ladder
as payments are low, and as long as they swap to a repayment
mortgage after first few years they can be useful.
Whatever type of mortgage
you are looking for it pays to get independent qualified
advice.
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