How to choose the right mortgage?
How to choose the right mortgage?
There are a few options to consider when you’re choosing a mortgage, including:
Fixed rate or tracker mortgage If you choose a fixed rate mortgage the interest rate stays the same for a set period, which can make it easier to budget. With a tracker mortgage, your interest rate will go up or down depending on the Bank of England base rate – so you’ll benefit if there’s a fall in the rate, but you’ll pay more if it rises. Some lenders offer special rates for new customers, so it’s worth getting in touch with our expert mortgage advisers.
Interest only mortgage An interest-only mortgage will give you cheaper monthly repayments, but leave you owing a large lump sum – the value of the property itself. They’re also potentially harder to get these days. You’ll also need to have a plan in place to pay off the money you’ve borrowed once the mortgage ends.
Repayment mortgage Repayment mortgages are more expensive when it comes to your monthly payments. But you’ll be repaying part of the whole loan each month – not just the interest.
Help to Buy There are a number of UK government schemes in place to help people get on the property ladder. These include Help to Buy equity loans and Shared Ownership, where you buy a share of the property (between 25% and 75%) and pay rent on the rest.
Give us a call today on 028 9332 2822 for a free, no obligation quote to see if we can get you your dream home!
Source: https://www.comparethemarket.com/mortgages/content/95-mortgages/