Compare best mortgage deals
Mortgage payments are usually made at regular intervals, such as monthly or quarterly, and your finances will have to be able to cope with these costs. In looking for a mortgage deal there are two main things that you may need to consider. You should consider your options in terms of the method of repayment and type of interest rate deal before making a final decision.
In terms of mortgage payments, there are two options from which to choose:
Repayment – this method of mortgage payment enables you to repay your entire mortgage loan within the set interest rate deal term established by your mortgage lender. Repayment consists of straight forward monthly payments that are composed of the interest owed each month as well as your monthly mortgage loan repayments
Interest only – this method of mortgage payment is composed of monthly payments totaling the amount of interest owed each month. You may be expected to make separate installments into a savings account to repay the entirety of your mortgage loan upon maturity.
In addition to choosing the method of repayment, you may need to consider which interest rate deal is the right choice for you. There are a variety of different interest rate deals to choose from, for instance:
Standard variable rate – your lender sets an interest rate that can be subject to change depending on your lenders perception of risk in the wider economy
Tracker rate –the interest rate follows the Bank of England base rate and because of this the interest you have to pay may be unpredictable and subject to change.
Fixed rate –your lender establishes a fixed rate of interest that you will have to pay until the term ends and the interest rate is switched to the lender’s standard variable rate, which is determined by considering the Bank of England base rate
After considering these details, your first port of call should be the product comparison table above, which is designed to make finding the right mortgage deal quick and simple.