Before approaching a mortgage broker, it may be necessary to carefully consider the type of repayment plan that will be best suited to your requirements. Here is a brief explanation of each type:
Repayment mortgages are the most popular type of repayment option currently used by customers, they are generally considered to be the safest and most reliable option available.
Customers repay a portion of the initial loan plus interest every month until the entire loan has been fully repaid. The advantage of this type of agreement is that interest rates will gradually be affected less and less as more of the loan is paid off over time.
Customers are also guaranteed to own the property outright once all payments have been made and the mortgage period has ended.
Interest Only Mortgages
Using an interest only mortgage, customers will only be expected to repay the interest on their mortgage initially, often allowing for relatively small monthly repayments in comparison to a repayment mortgage.
This type of agreement may often appeal to first time buyers who require extra money to spend on fixtures and furnishings for their new home.
It should be remembered however that customers will also be expected to save money using a suitable investment vehicle in order to repay the initial loan at the end of the agreement.
There are a variety of different types of interest rate deals that are available, in order to find an agreement that is best suited to your individual requirements, it may be useful to shop around and consult a mortgage broker who will be able to help you find the most competitive mortgage deal for your money.
Our Mortgage Broker service provides a national network of qualified regulated mortgage brokers who can provide specialist advice no matter what your circumstances.
With hundreds of deals to choose from it pays to get advice from an expert. Based on your requirements our mortgage broker service provides:
- Fast professional advice
- Mortgage Quotes from leading UK lenders
- Advice if you have a less than perfect credit history
- Advice for the self employed and those with irregular income
A couple of important facts that you should bear in mind regarding mortgage brokers include:
Some brokers will be connected to certain mortgage providers and therefore they will only be able to recommend a limited number of mortgage deals
Other brokers, while not be tied to individual lenders, will still only be able to recommend mortgages from a limited selection
While truly independent brokers will have a larger range of potential products, although they may not be able to secure a better deal