There are many types of mortgages from which to choose and the two most popular choices are:
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Fixed rate – the interest rate is fixed for a set time period, and when it ends, your lender may switch the interest rate to their standard variable rate which will be set according to the bank of England base rate.
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Tracker – the interest rate varies according to the bank of England base rate
In addition to choosing the type of interest rate deal, you may also need to decide which method of repayment is right for you:
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Repayment – straight forward monthly payments totaling the mortgage repayments and interest accumulated each month. In this option, you are guaranteed to repay your mortgage within the interest rate term set by your lender
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Interest Only –payments of the interest accumulated each month and separate installments into an ISA to repay the whole of your mortgage upon maturity. You can make overpayments and underpayments in this option, and as such it is important that you are a confident saver.
Before deciding on a particular interest rate deal or method of repayment, you may wish to speak to a mortgage advisor or your financial provider before settling on a deal, as your mortgage loan provider should consider your personal circumstances in order to find the right mortgage deal for you.
It is important to compare as many mortgage deals on the current market before agreeing to any as this will enable you to find the best deal for your money.