Finding The Cheapest Mortgage Rates
Some of the main types of mortgage interest rate deals are:
- Fixed rate mortgage – that will allow you to pay a guaranteed fixed rate of interest for a set period.
- Tracker rate mortgages – in which you will be expected to pay an interest rate that traces the Bank of England base rates
- Offset mortgage –in which your savings or current account will be used to reduce the interest you are expected to pay on your mortgage repayments.
In addition to choosing the cheapest mortgage rate possible, it is important that you consider your repayment options. You will have to decide between the following 2 options:
- Repayment – straight forward monthly payments of the interest you owe throughout the month and a pre-arranged amount of loan payment.
- Interest Only – monthly payments of the interest you owe and separate payments into an ISA to put towards paying back the whole of your mortgage loan by the end of the term set by your lender.
If you are considering taking out one of these loans, you should always shop around to ensure that you find the cheapest mortgage rate possible. There are a range of mortgages, each offering different rates and features to suit customer’s individual circumstances.
When attempting to find a suitably cheap mortgage, you may also wish to think about taking out a mortgage loan with the same bank or building society that you have a current account or savings with, as lenders may offer you better rates for your loyalty.