Contacts


Toni Chalmers-Smith
Senior Financial Adviser
T:01279 715590
E:

Kersi Deboo
Senior Financial Adviser
T:01279 713390
E:

Mortgages

Buying a house is one of the most important purchases you will make. Add this to the vast array of mortgage products available from a wide range of lenders, and you are left with what can be a confusing and stressful decision. Our clients are assured of access to a full range of mortgages products and unbiased advice on those best suited to their individual needs and circumstances.

What sort of buyer are you?

Our independent status is of first importance to borrowers. There are several types of mortgages available in the UK and various different ways you can repay them. The mortgage that is right for you will depend on the kind of buyer you are and your financial circumstances – whether you are a first time buyer or looking to move home and need a larger mortgage or, downsizing to a smaller property.

You may require a buy to let mortgage for a property you are planning to rent out.

Whatever type of buyer you are, we will explain how interest is charged, the way you pay for a loan and find out how much you'll be paying each month.

How is interest charged?

Different types of mortgages charge interest in different ways:

  • Fixed rates have rates set for a set term for typically two to five years, although they can be longer.
  • Tracker mortgages have interest rates follow the movement of the Bank of England base rate
  • A capped rate means that it will never go above a certain rate, which is agreed at the outset
  • A collar rate means that it will never go below a certain rate, which is agreed at the outset
  • Discount variable rate mortgages offer a discount on the lenders standard variable rate

Repaying the loan

You can choose to pay your mortgage loan back in one of two ways:

  • Repayment (also called a capital and interest loan)
  • Interest-only

With a repayment mortgage the repayments you make to the lender each month reduce the amount you owe as well as paying interest on the loan. This means each month you pay off a small part of the loan.

But with an interest-only mortgage, your monthly payment only pays the interest charges on the loan – you don’t reduce the loan itself.

You will have to make other arrangements to pay off the loan, for example through an investment or savings plan.

Offset mortgages combine both methods while also letting you use some of your savings and current account credit balance to reduce the amount you owe. Each month, the mortgage lender reduces the amount you owe on your mortgage by the amount in these accounts.

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