Capped Rate Mortgage

Posted on April 21st, 2015

A capped rate mortgage is a variable interest rate, but the mortgage lender will guarantee the rate does not rise above a certain level.

The capped rate mortgage suits those who want to benefit of any reductions and protect themselves from any increases. Its and ideal product for all but capped rate mortgages are usually more expensive than standard variable rates as the lender takes more risks.

A capped rate mortgage is similar to the base rate tracker. For example: say the mortgage base rate is 2% plus 2%, capped at 5%. If the base rate was 4%, therefore the rate offered will be 5% as oppose to 6%.

There are not so many mortgage lenders offering this type of mortgage scheme. Speak to one of our advisers to confirm. However when mortgage conditions improve, mortgage lenders will innovate such products again. Our mortgage brokers will be able to source and advise you the right deals based on your circumstances.

If you searching a capped rate mortgage, please speak to one of our advisers whom will search the whole market for you. As stated above, there are very few capped rate mortgages available but we will look for you.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Fixed Rate Mortgage

Posted on April 20th, 2015

A fixed rate mortgage is where the interest rate payable to the lender is fixed for a specific period of time. Lenders may offer from one year to 25 years. The most common period of fixed rate mortgage are between 2-5 years.

The advantages of fixing the interest rate are:

  • Easy Budgeting
  • If interest rates rise, the payments are fixed so payments are not affected within the period.

The disadvantages of fixing the interest rates are:

  • If interest rates fall, the borrower will not benefit as payments are fixed within the period
  • If the borrower wishes to pay the mortgage within the scheme period, an early repayment charge will apply.

Overall, a mortgage borrower may decide to fix payments, as a 1% fall in the variable rate is ‘good to have’ but a 1% increase in the variable rate may cause financial problems.

First time buyers prefer fixed rate mortgages as they prefer to know exactly the payments each month as oppose to a payment which fluctuates. Our mortgage broker will advise the right deals based on your circumstances.

If you require mortgage advice on a fixed rate, please speak to one of our advisers. Fixed rates are the most popular choice in recent years (from 2015), and most likely will continue due to mortgage rates remaining low. If you first time buyer or seeking a remortgage, please send in your details and we’ll discuss your mortgage options.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Discounted Rate Mortgage

Posted on April 20th, 2015

A discounted rate mortgage is a rate discounted from the Standard Variable Rate (SVR) set by the lender. The period offered may vary from 3 months up to 3 years. Once the discount is over, the rate will revert to the SVR.

Most mortgage lenders apply early repayment charge during the scheme period. For example: 2 years discount with a further one year at the Standard Variable Rate therefore an early repayment charge would apply for 3 years.

Discounted rate mortgage tend to suit individuals such as young professionals whom expect their incomes to increase. Professional such as trainee solicitors or trainee accountants suits a discounted rate mortgage. Speak to one of our mortgage brokers and they will advise the right deals based on your circumstances.

If you require advice on discounted rate mortgages, please speak to one our experienced advisers. We will go through your options regarding discounted rates and will search the whole mortgage market. Our office is based in Manchester.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Standard Variable Rate

Posted on April 20th, 2015

Standard Variable Rate mortgages (SVR) can be offered to borrowers; and the rate offered is higher than the fixed rate and discounted rate schemes. Generally the main benefit of Standard Variable rate mortgage is there is no early repayment charge; our mortgage advisers will confirm the product with you.

Standard Variable Rate mortgages are suited to investors and applicants seeking buy to let mortgages or let to buy mortgages. The only down sides to the mortgage product is the payments fluctuate and are at a higher rate.

Mortgage lenders set their own standard variable rates and generally take into account:

  • Market conditions
  • Competition
  • Operating costs and desired profit margins

Our mortgage brokers will advise you the right deals based on your circumstances.

If you require mortgage advice, and need us to source a standard variable rate mortgage, please get in touch.

We have access to whole mortgage market and as mortgage brokers we will go though your options.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Base Rate Tracker Mortgage

Posted on April 20th, 2015

Mortgage tracker rate

Most mortgage lenders offer the Base Rate Tracker mortgage. This type of mortgage scheme is linked to the Bank of England Base Rate.

For example: Bank of England official rate 0.5% plus 1.5% offered by the lender. Therefore the mortgage rate charged is 2%. The mortgage lenders offer similar period schemes to fixed and discounted rates such as 2 and 3 years; early repayment charges apply.

The Bank of England rate is based on economic conditions and tends to be assessed monthly by the Monetary Policy Committee.

Most mortgage lenders apply restrictions to low level base rates; and you must speak to your mortgage provider to confirm this.

The base rate mortgage suits those who can comfortably afford the mortgage based on an affordability check. Our mortgage broker will advise the right mortgage deal based on your circumstances.

From 2008-2011, many borrowers whom are on Base rate mortgages have seen favorable conditions and lower payments. Please note, this isn’t the norm and rates are expected to rise as the economy improves.

If you needs mortgage advice on tracker rate mortgages, please speak to you one of our experienced advisers. We do have access to the whole mortgage market and we’ll source the best tracker rates for you.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Stepped Mortgages

Posted on April 20th, 2015

A stepped rate mortgage can be fixed or variable and the rate generally increases in steps. Initially, the interest rate for the first few months or first year is at its lowest and then increases in pre steps. Typically the stepped mortgage scheme last up to two to three years.

These mortgage schemes are attractive to new home borrowers. For example, first time buyers seeking extra initial expenses for redecorating or trainees whom are expecting increase in salaries in the coming years i.e. trainee accountants. Our mortgage brokers will be able to source and advise you the right deals based on your circumstances.

If you require mortgage advice and you’re a first time buyer seeking a stepped rate mortgage, please get in touch. We have access to the mortgage market and will go through your mortgage options. Mortgage lenders are offering stepped rate mortgages, but you must consider the final rate and must fit within initial affordability assessments.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.