Douglas Bell
Long Bennington
Posts:4
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Hi
I'm looking at buying a flat and have started to investigate the different mortgage options.
I haven't spoken to an IFA but doing some research on the internet it seems like there are loads of different mortgages.
I have a decent deposit but can you help me by explaining the different options?
Many thanks
Doug
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| Posted: 18 Nov 2008 12:13 Back to top |
Kate
Posts:70
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Sure, mortgages look complicated because of the way they are marketed. However there are only two types: Interest only and Repayment.
Ideally you should consult an independent financial advisor to make sure you choose the right mortgage product for you. Find an IFA that covers 'whole of market' ie is not 'tied' to any particular companies. Whoever you talk to MUST legally be qualified as a Mortgage Advisor.
When you know whether a repayment or interest only is best for you, the next thing is to work out what type of rate you pay back the money by. This might be a 'tracker' rate ie it goes up or down depending on what happens to the bank base rate. It might be 'fixed' for a period of time, usually 2,3 or 5 years, but can be for the lifetime of the mortgage and whether the bank base rate goes up or down, you still pay your fixed rate. Others are 'variable' which means whatever the quoted rate is by the mortgage lender and another is 'capped' which means it can go up and down with bank base rate changes, but never goes over an agreed percentage.
Choosing the right mortgage can save you tens of thousands of pounds over the lifetime of the mortgage, so check the comparison sites, but visit an IFA to get full help.
Don't forget if you need an IFA, go to our Buying section, click on 'Services' and 'mortgages' and if you want to work with one of our partners, let us know first and we'll see if we can negotiate a special deal for you!
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| Posted: 20 Nov 2008 11:43 Back to top |