Compare Mortgage rates
As you compare mortgage providers, it is also advisable that you think about the different types of mortgage deals on offer. You may wish to consider the following:
A ‘repayment’ type of mortgage deal would require you to make regular repayments of capital plus interest; these repayments would continue until the whole mortgage loan has been fully repaid. This is a popular option due to it coinciding with many peoples ‘common sense’ view of the nature of a loan.
An ‘interest only’ mortgage would involve you having to pay monthly interest payments, whilst simultaneously regularly paying into an investment vehicle such as an ISA or an endowment; upon maturity, this financial investment would need to pay off the mortgage loan.
Types of interest rate
Standard variable rate (SVR)
This refers to the mortgage providers’ basic interest rate without any discounts. This rate is called variable because it can be changed at the lenders discretion.
A fixed rate mortgage deal would come with an interest rate that is guaranteed to be a certain amount for a set period, after which it would normally revert to the mortgage providers’ standard variable rate (SVR).
This type of interest rate moves in relation to the Bank of England base interest rate, meaning that it could increase or decrease with this.
Once you have got your head around the various options available to you with regards to mortgage deals and mortgage providers, you should take a look at our product comparison.