Mortgage Options
Whether you are purchasing a property for the first time, re-mortgaging an existing property or have a buy-to-let portfolio, we have the expertise in each of these sectors to assist you.
We will explain the various types of mortgage options available such as fixed, variable, tracker, offset etc., and provide advice on the most appropriate way of repaying your mortgage to fit in with your current and planned future circumstances.
Selecting a mortgage can be a difficult and time-consuming exercise as lenders often use jargon, describe mortgages by different names, have varying interest rates, small print terms and upfront charges, many of which change almost on a daily basis. For these reasons, we believe you should always use a specialist broker who has the current market information to hand and can guide you through this maze.
There are many different types of UK mortgage options available, each with their own pros and cons, and the list is designed to provide a brief synopsis of the most popular mortgage products currently available.
Repayment Mortgage
A straightforward repayment mortgage is the safest way to ensure your mortgage is repaid at the end of the agreed term.
Your monthly repayments will partly go towards the repayment of the capital borrowed, with the remainder covering the interest due.
If all repayments are met to their full extent and on time, then the mortgage is guaranteed to be repaid by the end of the agreed term.
Interest Only Mortgage
Interest-only mortgages mean you only cover the monthly interest payments on your loan while the actual mortgage balance remains outstanding.
At the end of the mortgage term, the total amount of the loan is repayable.
It is essential therefore that you have a plan in place to repay the mortgage at the end of the mortgage term, this could be an investment policy, savings or you may plan to downsize once the family has flown the nest.
Variable Rate Mortgage
Variable rate mortgages can fluctuate from time to time and are not specifically linked to the Bank of England Base Rate but can change when the mortgage lender assesses their needs and many aspects of the UK economy.
This means that your monthly mortgage payments may increase or decrease in line with each lenders own variable rate.
Discounted Variable Rate Mortgage
In simple terms, the lender offers a reduced rate of interest from their standard variable rate for a set period of time, typically 2 to 5 years.
This type of mortgage is linked to standard variable rates and therefore subject to fluctuations.
Fixed Rate Mortgage
A fixed-rate mortgage secures the interest rate for a specific period of time, meaning that monthly repayments remain the same until the fixed rate expires.
The period of the fixed rate varies from lender to lender but typically ranges from 2 years to 10 years.
This type of mortgage means it is easier to plan ahead as you will know exactly what your monthly payments will be without the concern of future mortgage fluctuations.
Tracker Rate Mortgage
A tracker-rate mortgage means that a lender offers an interest rate that ‘tracks’ the Bank of England base rate.
This can be either a rate below or above base rate.
This means that mortgage payments will fluctuate in line with the changes in UK base rates.
CONTACT US
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5 Liberty House,
Ensign Street,
London,
E1 8JA
Tel: 07984 816935
Partners: AT Gallacher
& JA Gallacher
The Gallacher Partnership is authorised and regulated by the Financial Conduct Authority. We are entered on the FCA register No 430341 at www.fsa.gov.uk.
Not all buy to let mortgages are regulated by the Financial Conduct Authority.
The Gallacher Partnership has access to the whole of the UK’s intermediary mortgage market including a number of ‘exclusive’ products made available only through mortgage brokers. We give help and advice to people in all circumstances.
We pride ourselves in the personal and professional service that we provide whether you are a first time buyer, home mover, buy to let investor or whether you require to raise some capital or simply wish to remortgage to a better mortgage deal.
For further information please get in touch.
The Gallacher Partnership is authorised and regulated by the Financial Conduct Authority. We are entered on the FCA register No 430341 at www.fsa.gov.uk Not all buy to let mortgages are regulated by the Financial Conduct Authority.