Mortgages should be straightforward - you borrow money to buy a house and pay interest on the loan. In a hugely competitive market, building societies and banks are continually updating and extending their range of mortgages.
The most important points are how you pay back the capital you borrow and how you pay the interest on it.
You can either pay the capital a little at a time as you go (repayment mortgage) or pay it all off at the end (Interest only or endowment mortgages).
For details of our fees for mortgage business please see our page How we are Paid
We can offer advice that is tailored to your needs and circumstances. This could be for your first home, moving home, *investing in property or remortgaging. Please contact us for further information
*THE VALUE OF PROPERTY INVESTMENTS AND INCOME FROM THEM CAN GO DOWN AS WELL AS UP AND INVESTORS MAY NOT GET BACK THE AMOUNT ORIGINALLY INVESTED.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
COMMERCIAL MORTGAGES AND MOST FORMS OF BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
Paying back the capital.
You can either pay a little at a time as you go (repayment mortgage) or pay it all off at the end (interest only).
Each monthly payment pays off a little of the underlying debt, as well as interest on the loan. At the end of the repayment term providing all payments have been made in full and on time the mortgage will be repaid in full.
Interest only mortgages.
With this type of mortgage, you pay off the interest on the loan but not the capital. Then at the end of the mortgage term it is your responsibility to repay the capital.
Variable, fixed and capped rates.
Variable: paying the going rate on your loan, goes up and down with changes in interest rates. Fixed rate: The interest rate is fixed for the period agreed. Capped rate: These are fixed, but if rates fall you pay the lower rate.