Mortgages

Buying a house is the biggest purchase most people will ever make

The mortgage that you apply for to buy your house will be the largest debt that you are ever likely to take on personally, and it is likely to be the debt that you will have for a large part of your life.

Mortgages are not a “one-size-fits-all” market and it is therefore essential that you ensure the mortgage-type you apply for is right for your own individual circumstances. You will find listed below the different types of mortgage that you can apply for, and which we can advise you upon:

This is a loan that is made on your own home and which is considered your primary residence.

The loan application asks whether you intend to occupy the property as your primary residence.

This is a loan taken out on a home other than the one you live in, where the intention is for you to rent the property out to another party.

This loan is where the interest rate is variable and is linked to the Bank of England base rate.

Your repayments can vary significantly with this kind of loan dependent on changes in the financial markets and interest rates set by the banks.

This is a loan where the interest rate is fixed for a pre-determined amount of time, and then reverts to the Standard Variable Rate (SVR) once that fixed rate term ends, if you do not renew the fixed rate deal.

If prevailing interest rates rise above the level of the fixed rate during the term of the loan, your payments are protected and will not rise.

With a Fixed Rate loan the payments do not fall if the prevailing interest rate falls below the fixed rate – they remain the same.

This is a good means of ensuring your payments remain the same for the term of the fixed rate.

This is a loan where the interest rate is capped at a maximum amount for a pre-determined amount of time, and then reverts to Standard Variable Rate (SVR) once that fixed rate term ends.

This differs from a fixed rate loan because whilst the payments will not increase if prevailing interest rates rise above the capped rate, payments will fall if the prevailing interest rate falls below the capped rate.

This is a loan where a further advance is taken on the property, but where the lender of the further advance is different to the lender of the original loan.

There are certain other types of mortgage loans that can be available to homeowners, and we would be happy to discuss these with you at your convenience to recommend and obtain the best option for you.

Commercial and some buy to let mortgages are not regulated by the Financial Conduct Authority.

If you wish to take a lifetime mortgage (home reversion scheme) then to understand the features and risks, ask for a personalised illustration.

The home or property on which the mortgage is secured may be repossessed if you do not keep up repayments on the mortgage.