As well as shopping around for a particular type of mortgage deal, you should also choose your preferred method of repayment. The options are:
- Interest Only – monthly payments of the interest you owe and separate payments into suitable investment vehicle, in order to repay your whole mortgage loan upon maturity.
- Repayment – monthly payments of the interest you owe and mortgage repayments.
In some cases, you may also wish to consider using your current bank or building society to take out a mortgage loan as there may be benefits and advantages involved in having numerous financial products under the same organization.
There are a variety of different types of mortgage deals you may wish to consider:
- Flexible Mortgages – that may allow customers to under or overpay on their mortgage as they see fit. These types of mortgages are often suited to customers who may be expecting their income to fluctuate during the period
- Capped Mortgages – that are very similar to tracker mortgages, but will have a guaranteed maximum interest rate that is agreed with the provider
- Discounted Mortgages – that provide customers with significantly reduced interest rates for a temporary period, usually during the start of the period. Customers should be wary of increases to their interest rates after this introductory period