Mortgages

A mortgage is a loan that you take out to buy a property. Most run for 25 years but can be shorter or longer. The money you borrow is called the capital and the lender charges you interest on it until it’s repaid. The loan is ‘secured’ against the value of your home until it’s paid off. If you can’t keep up your repayments, the lender can repossess your home and sell it, so they get their money back.

You borrow an agreed amount and repay it monthly, until the total is repaid within the duration of the agreement. As well as repaying the money, you’ll pay interest too. To find the most suitable mortgage deal on your own involves a lot of research and talking through your circumstances many times with different lenders. We work with a range of carefully selected lenders to find the mortgage that suits you best. We could also improve your chances of being accepted for a mortgage, knowing which lenders are best suited to your circumstances.

Monthly repayments will be cheaper than on a repayment mortgage for the same amount of borrowing, because you’re only repaying the interest. But the total long-term cost will be higher because you’re not actually reducing the debt each month, meaning more interest accrues. The eligibility criteria are often tougher on these mortgages, they’re offered by fewer lenders, and you’d need to prove you can repay the amount borrowed as a lump sum. Having a mortgage adviser guide you through the complexities could be beneficial.

A variable rate mortgage links the interest rate payable  to the Bank of England’s (BoE)Bank Rate.s. This means the amount you repay will vary in line with the rates set by the BoE. With a fixed-rate mortgage your repayments will be the same each month either for the full duration or over a set period. You won’t benefit when rates are lower, but you also won’t need to pay more when interest rates rise. There’s pros and cons of each, and we can guide you towards which is best for your personal circumstances and current market conditions.