Compare Mortgage Deals
You may wish to consider the following options as you search for mortgage deals:
Interest only or repayment mortgage?
With an interest only mortgage, you would make monthly interest only payments as well as paying into a long-term investment vehicle; at the end of your mortgage term, these savings will be used to pay off your loan.
With the other main option, a repayment mortgage your monthly repayments would cover interest and capital and, at the end of the mortgage term, the loan would be fully paid off.
Interest rates: tracker, fixed rate or standard variable rate?
Tracker rates follow the Bank of England base interest rate, moving up or down in conjunction with this.
Fixed rate interest deals are set at a certain discounted rate for a predetermined period, after which it would most likely revert to the provider’s standard variable rate.
A provider’s basic interest rate tends to be called the standard variable rate, which is subject to change at any time although this will usually be based on wider economic considerations rather than the whim of the lenders.
An offset mortgage tends to be linked to your savings account, with the option to also link your current account, as well as other debts such as credit cards and unsecured loans.
By surrendering the option to accrue interest on your in credit balances, the amount of interest paid on your debit balances is reduced.
With so many options to consider with regards to the variety of mortgage deals available to you, you are advised to take your time and to use our product comparison tables to really explore the avenues open to you.