Mortgages
A mortgage is possibly the biggest financial commitment you will ever make. Therefore it is wise to shop around to ensure you get the best mortgage suitable to your individual needs.
We at Consolidate-your-credit.com work alongside some of the most reputable UK mortgage lenders, therefore if you are looking for a mortgage, call or apply online as we can help to point you in the right direction.
Alternatively please click the links below for recommended websites.
Moneycall - Mortgage/Re-mortgage specialists
Finance Index - for Mortgages, Personal Loans, Credit Cards and More
If you would like more information on re-mortgages, please call or apply online to speak to one of our trained advisors.
Different types of mortgages
Variable
Most mortgages are taken out at variable rates of interest. That means your lender sets an interest rate and from time to time this will be moved up and down in relation to general movements in interest rates in the wider economy.
Fixed
These offer borrowers a guarantee of what their mortgage payments will be for a set period of time. An interest rate which does not vary with rates generally is convenient for budgeting. You, of course run the risk that mortgage rates generally will fall below the level at which you've agreed on your fixed rate deal. But equally, you'll be insulated from any significant upward swing in mortgage rates. In the UK most fixed mortgage rates are fixed for a period of 1 - 10 years, unlike in the USA where the norm is for the rate to be fixed for the entire mortgage term.
Discount
In the competitive environment among mortgage providers, there are a variety of offers which promise a discount off the prevailing variable interest rate. In other words, the interest rate on offer is set at a set margin below the standard variable rate. This 'discount' may be for a number of years, but in some cases lenders have offered big discounts for short periods of time. e.g. 6% off your home loan rate for six months.
Capped
This is a mixture of a variable and fixed rate mortgage. An interest rate is charged in line with current prevailing rates, but the borrower is given a guarantee that the rate will not exceed a certain amount. These offers are usually for a limited period of say three years. The advantage to the borrower is their mortgage rate can fall but there is a limit to how high it can rise in the event of mortgage rates generally in the economy turning upwards.
