Mortgages

You might know you need a mortgage but how can you know which mortgage, out of the hundreds available, is best for you?

Having discussed your needs with you, your adviser will first find out what you can comfortably afford. This will then lead into a discussion about how much you can borrow and how you will repay the mortgage. Your adviser will then find you the mortgage that fits. Simple!

But that’s not the end. Your adviser will be there in two or three years to review your mortgage when your deal finishes, ensuring you always have a mortgage that suits you.

What is a mortgage?

A mortgage is a loan which is secured against your home. When you take out a mortgage you agree to pay the loan back with interest over a period of time agreed with your lender. If for any reason you cannot repay the loan, the mortgage lender can sell the house to recover the debt.

What types of mortgages are there?

Mortgages for house purchase
Buy-to-let mortgages

How can I repay my mortgage?

Repayment mortgage - each month you pay off both the amount you borrowed and the interest your lender charges.

Interest only mortgage - each month you pay off the interest charges on your loan, not the loan itself. If you chose this option it is very important to understand that you will not be reducing the amount you borrowed and will need to arrange for another way to repay the loan at the end of the term.

You can also opt for a combination of the two.

What types of interest rates deals are there?

Fixed-rate - your interest payments are fixed for a set period of time after which you will be moved on to another rate, such as the standard variable rate or tracker rate.
Standard variable rate - your interest will vary with your lender's mortgage rate.
Tracker rate - your interest rate will move up or down by tracking an external rate such as the Bank of England rate or London interbank rate.
Discounted rate - your interest rate will vary with your lender's standard variable rate but you get a discount for a set period of time.

Your home may be repossessed if you do not keep up repayments on your mortgage.