The Mortgage Specialist
There are literally hundreds of Mortgages available on the market
at any one time but which one is best for you. Our experienced advisors
will search the market for you and help and recommend the best product
suit your needs.
Below is a guide to the types of mortgage that are available:
Standard Variable Rate
This is a lenders highest priced product but generally unlikely
to have any penalties on partial or full redemption. Bank of England
Base Rate is currently 5.50% (as at 5/01/2008) whereas SVR can typically
be around 7.50% a whole 2% higher.
Discount Mortgages
Discount Mortgages are offered at a discount to Variable Rate and
may have ties or penalties on part or full redemption of your loan.
Lenders are not generally obliged to pass on to you in full any
decrease in the Base Rate with Discounted Mortgages.
Fixed Rate Products
These are handy if you need to be sure of your budget as the rate
is fixed and payments will increase or decrease during the fixed
rate period. Fixed Rate products are likely to incur an arrangement
fee and are pretty likely to have penalties on part of full redemption.
Penalties on early clearance can be very steep. Generally speaking
the smaller your mortgage amount and repayment term the more consideration
should be given to avoiding this type of product.
Capped Mortgages
Likely to incur penalties on part or full redemption and are similar
to fixed rate products but with a capped rate mortgage if the variable
rate drops below the "capped" figure so do your payments,
rises are however capped at an agreed level. This type of mortgage
puts a maximum on your monthly payments. This type of products is
now offered less by lenders.
Trackers
Tracker mortgage can still be sourced with little or no arrangement
fees or ties or penalties. The rate follows the Bank of England
Base Rate plus or minus a margin. In a period of falling interest
rates these are attractive as the full decrease is immediately passed
onto you, the mortgage holder but remember the opposite also applies
should the rate rise.
Overseas Mortgages
Overseas Mortgage vary from Uk mortgages but through our sister
company Mortgage Healthcare Overseas Ltd we can source a whole range
of Mortgages abroad. For more information on Buying and Financing
Property Overseas contact our Overseas Property Manager Chris King
on 07971 795264 or email chris@vitaoverseas.com
With so many products on offer it's important to get independent advice and we are here ready to help you in any way we can. If you would like to talk to us and get some professional advice why not give us a call on 01382 732327 or 01382 732328. We look forward to helping you.
