Residential Mortgages
Fixed or Variable?
Fixed-rate mortgages are like having a steady, reliable buddy – your interest rate stays the same throughout the agreed period, so your payments are predictable each month.
On the other hand, variable-rate mortgages are a bit more adventurous! Your interest rate can change, typically based on the Bank of England's base rate, meaning your payments might go up or down.
With a fixed rate, you get peace of mind and budgeting ease, but there might be an early repayment charge if you switch before the fixed term ends.
Variable rates can offer more flexibility, often with no early repayment charges, but you need to be ready for some ups and downs in your monthly payments.
In a nutshell, fixed rates offer stability, while variable rates offer flexibility – it’s all about what suits your lifestyle and financial comfort zone!
Repayment or Interest Only?
Think of capital repayment mortgages as the go-getters – every month you’re paying back a bit of the loan itself (the capital) along with the interest, aiming to clear the whole balance by the end of the term
On the flip side, interest-only mortgages are like keeping things casual – your monthly payments only cover the interest, so you’ll need a solid plan to pay off the actual loan amount when the mortgage term wraps up
Capital repayment is a steady journey towards owning your home outright, with your mortgage balance decreasing over time
Interest-only can mean lower monthly payments, but it’s crucial to have a reliable strategy, like investments or savings, to settle the capital at the end
In a nutshell, capital repayment mortgages see you steadily owning more of your home, while interest-only requires a bit more planning to ensure you’re set at the end of the term
Affordability
Mortgage affordability is like your financial passport – it determines how much a lender is willing to let you borrow for a home.
It’s not just about your income; it’s about your outgoings too – debts, loans, and regular bill payments all contribute to painting a picture of what you can comfortably afford.
Lenders look at this to ensure you can comfortably make repayments, even if interest rates go up or your circumstances change.
Remember, it’s about finding a balance – you want a home that suits your needs, but a mortgage that suits your wallet.
So, take time to understand your finances, because knowing what you can afford is the first step on the property ladder!
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First Time Buyer
Ready for the first step onto the property ladder? Want to see if this is even possible?
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Home Mover
Time for a change? Ready to move on?
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Re-Mortgageing
At the end of your current fixed deal? Want more money from your property? Want to get the best deal for your mortgage?