Tracker Mortgage Advice
Finding a mortgage can be a time consuming process, regardless of whether you are a first time buyer or are looking to re-mortgage your property. If you are inexperienced, it is recommended to seek advice on tracker mortgages, along with many of the other different types of agreement that exist. A tracker mortgage deal traces the Bank of England base rate, which means that your monthly payments are determined by the increases and decreases that occur in line with the Bank of England base rate.
If the Bank of England base rate is low, so will the rate of interest you are expected to pay on your mortgage repayments. If however, the Bank of England base rate is on the increase, you will be expected to pay a higher interest rate of interest on your mortgage repayments. In some Tracker mortgage deals, you are permitted to make overpayments and underpayments, but this depends on your current financial situation. Even if you are sure that the Tracker mortgage deal is for you, it is advisable to research the market for tracker mortgage advice and comparison into the most competitive deals that are available. When searching for a tracker mortgage, advice should also be sought into the most suitable type of repayment agreement available. They are:
This method of repayment consists of straight forward payments on the interest you owe each month, as well as pre-arranged monthly repayments on your mortgage loan. If you choose this repayment method you are guaranteed to repay the entirety of your loan within the interest rate term set by the lender.
Interest Only Mortgages
This method of repayment consists of monthly payments of the interest you owe over the course of 1 month, often making monthly repayments smaller compared to repayment mortgages. You may be required to make separate payments into an ISA to put towards repaying the total sum of your loan at the end of your set term.