A mortgage is a loan you use to buy a property. You usually pay back the amount you borrow as well as interest over a set time. You pay back part of your mortgage every month for a certain number of years. Most people take out their first mortgage for 25 to 30 years.
There are three main types of home buyers:
Depending on your business plans, you might use the cash, to refurbish your premises, to purchase or develop property, buy new machinery, or invest in state-of-the-art equipment.
Here are the main types of mortgage options available when considering moving home mortgages:
Tracker mortgages track the Bank of England base rate, apply it, and add the additional set percentage rate from the lender.
Fixed Rate Mortgages:
A fixed rate mortgage means that your monthly payments are the same amount each month, regardless of what’s happening to the Bank of England base rate or the property market. Most common fixed terms are 2 /5 years and revert to variable once fixed the fixed term ends.
Discounted mortgages offer an upfront discount off the lender’s Standard Variable Rate (SVR). This is usually for the first few years of your mortgage deal, before it switched back to the SVR. Discount rates can still go up or down.
A capped rate mortgage is on a variable rate, so your monthly repayments can fluctuate. However, the capped rate will never go above a certain limit.
*To make sure we can offer the best possible service, our mortgage products are provided by our preferred 3rd party partners.
Representative example: If you borrow £10,000 over 10 years at an annual interest rate of 6.62%, you would make 120 payments of £132.37 per month. The total amount repayable will be £15,884.15 (This includes a lender fee of £595 and a broker fee of £1000 which have been added to the loan). Total charge for credit will be £4289.15. Overall cost for comparison is 10.03% APRC (variable) representative. The Personal Finance Centre is a leading broker and not a lender.
Rates from 2.9% APR. We have a range of plans and rates allowing us to help customers with a range of credit problems.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the term of the debt and increasing the total amount you repay.