Did you know that there are over a thousand mortgage deals on the market from over a hundred different lenders? Deals are constantly changing and trying to keep abreast of what is on offer is not easy. We have access to all available deals and can trawl through the market to locate the product that is best for you.

Paying off your mortgage

Repayment
You pay the lender a monthly sum which is partly made up of interest and partly the original debt. At the end of the mortgage term, the loan will be paid off.

Interest Only
Monthly payments are comprised only of the interest accrued on your debt. At the end of the term, you owe the lender the same amount that you did at outset. A separate investment plan is needed to build sufficient funds to clear the debt.

Interest Rates

Variable Rate
The interest that you pay changes in line with the bank base rate.

Discounted Rate
You take advantage of a discount for a specified period, after which the rate is variable.

Cashback
The rate is variable with a lump sum (usually a percentage of the loan) payable when the mortgage completes.

Fixed Rate
The interest rate is determined for a set period at outset. This is often lower than the standard variable rate.

Capped Rate
The lender determines a maximum rate for a period of years. If the lender’s rate falls below the capped rate, mortgage payments will be lower. Some lenders also impose a collar or floor, below which the rate can’t fall.

There are advantages and disadvantages of each type of mortgage, and they do not all suit everybody. A discussion with your IFA will help you to understand the options available and find a deal that’s right for you.