Mortgages @ Mortgage Options

Choosing a mortgage is not as simple as finding the lowest rate. Even if it was, the variety of deals in the market place would surprise you and could leave you feeling confused and dazed.

However most of the really good deals are only available from independent mortgage advisers. The role of our mortgage advisers is to maintain independence and focus on getting the best and most appropriate deal for you.

The details below showcase the most common mortgage options that are available to you. Remember it's your choice - not ours!

MORTGAGES

Remortgages

The remortgage process is far simpler than many people believe. With Mortgage Options we take care of everything for you and can even take care of the solicitors for you. Remortgaging involves changing your mortgage from one lender to another in order to obtain a better deal. While remortgaging, some people may look to change the terms of their mortgage including taking additional money.

Buy to Let mortgages*

Specifically designed to allow applicants to have multiple mortgages on multiple properties allowing a portfolio of investment properties to be constructed. The buy to let mortgage is for use when a property is to be let out. Normal income calculations do not apply and emphasis is placed on the rental income generated by the actual property.

Debt Consolidation

This is the procedure whereby expensive debts such as credit cards debt, personal loans, overdrafts and other borrowing which incur a higher rate of interest are added to the mortgage to take advantage of the lower rates of interest available. Debt can then be paid back over a longer period thus cutting monthly payments and improving monthly cash flow often dramatically. The disadvantage is that over the longer term of a mortgage these debts can cost more overall.

Because not all lenders say NO.

If you are entitled to a mortgage we will get you a mortgage! Typical APR is 8.4%

TYPES OF MORTGAGE

Repayment

This is the most common and safest way of repaying your mortgage. Each month part of your payment covers the outstanding interest and part goes towards repaying the original loan amount. So long as all payments are made in full and on time, your mortgage is guaranteed to be repaid by the end of the term.

Interest Only

Using this method only the monthly interest is repaid and there is no payment made towards repaying the original loan. This type of mortgage is often favoured by landlords. The advantage is that because no money is being put towards repaying the original loan amount then the monthly payment is lower, improving cash flow. With nothing going towards repaying the original loan amount the amount of mortgage outstanding does not decrease.

Investment Backed

As with an interest only mortgage, the monthly amount paid to the lender simply covers the interest incurred on the mortgage. A separate scheme is then put in place such as an endowment or Individual Savings Account, in order to collect money for investment with the aim of growing the money invested to a level at which it can be used to repay the mortgage.  

MORTGAGE PRODUCTS

Fixed Rates

With a fixed rate mortgage the rate and therefore the amount you pay each month will not change for a set period of time. After this time you will revert to the lender's standard variable rate. An advantage of a fixed rate mortgage is that you know what you will be paying over the period of the fixed rate, so you will not be caught by unexpected interest rate rises.

Standard Variable Rates

This is the lender's standard product and is usually around 1.5% to 2% above the Bank of England's Base Rate. The rate usually moves in line with the Bank of England's base rate although it may change at other times as the lender has the ability to set the rate.

Discounted Rates

This rate gives a discount on the lender's standard variable rate for a set period. As interest rates rise and fall your payments will change accordingly but they will still be in line with the discount from the standard variable rate. After the discount period you will usually revert to the lender's standard variable rate.

Base Rate Trackers

This is also known simply as a ‘Tracker'. The rate tracks or follows the Bank of England base rate by a set percentage i.e. 0.25% above or even below. When the base rate changes the amount you pay changes too. The rate is usually very competitive but does not protect you from increasing rates.

Capped Rates

A capped rate mortgage guarantees that your monthly payment will never go above a set figure within a certain time period. During this time period your payments will move up and down usually in line with the lender's SVR but will never go above the set figure. After the cap period is over the rate normally reverts to the Lenders Standard Variable Rate.

* These products are not regulated by the Financial Services Authority.

Amount (£)

Repayment Term (in Years)

Interest Rate (%)

Payments

Per Month

Simply type in the interest rate of one of our mortgage products and click submit. The Calculator will show you an indication of your monthly repayments with both an interest only and a repayment mortgage option.

* This calculator is for guidance only and it is not a guarantee that you are able to borrow the amount you have indicated and it also does not constitute the offer of a mortgage.