“YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.”
Exclusive mortgage options
Exclusive mortgage options such as lower interest rates can be exclusive to a particular mortgage network and may not be available elsewhere. Your personal circumstances determine which exclusives and incentives are available.
Exclusives such as lower rates and other incentives might be available on various tie in period’s.
• 2 year fixed rate
• 3 year fixed rate
• 5 year fixed rate
• 2 year tracker rate
• 3 year tracker rate
• 5 year tracker rate
• Other variable or discounted rates
If eligible for exclusives they can include benefits such as:
• Free mortgage valuation.
• Free standard legal fees.
• Cash-back towards mortgage costs.
“Exclusives are not available on all mortgage products from all mortgage lenders.”
“YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.”
Fixed mortgage rate
With a fixed rate mortgage, the interest rate you pay will remains the same throughout the initial product tie in term, no matter what happens to interest rates in the market, should they increase or decrease.
This means you have certainty of knowing what your monthly payment will be each month. The downside is if interest rates fall, you’re paying more than you could have paid had you not fixed your rate. When your product term ends, your rate will move onto a different Standard Variable Rate (SVR).
The SVR you move on to at the end of the product term may be higher than your fixed rate. So your monthly payment could increase significantly, so you need to plan for this. For this reason, you should generally monitor your mortgage provider’s variable rate. If this is increasing, you should think about reducing your other outgoings accordingly so that you can meet the higher repayments, at the end of the product term. You should speak to your adviser, around 6 months before the end of the product period to look at the options for you.
If you wish to repay the mortgage before the end of the product period, there will be an early repayment charge to consider. This can be a considerable fee to pay.
If you move house your fixed rate may be ‘portable’, which means it might be possible to move it to a new property. Moving is still treated as a new mortgage application so you will need to meet the lender’s affordability checks and other criteria to be approved for the mortgage.
Discount mortgage rate
With your Discount Rate mortgage, the interest rate you pay will be less than the standard offered by your mortgage provider throughout the initial product term. Discounted rate mortgage payments will increase or decrease if rates go up or down.
This means that you will not have the certainty of knowing what you will pay each month. You may initially be paying less than if you had fixed your interest rate, but the downside on is that, if interest rates rise, you may be paying more than you would have done, had you fixed your rate.
When the product term ends, the discount will be removed, and you will move onto a standard variable rate (SVR).
The SVR you move on to, at the end of the product term, will be higher than your discounted rate, which could lead to a significant increase in your monthly repayments, so you need to plan for this. You should speak to your adviser, around 6 months before the end of the product period to look at the options for you.
If you wish to repay the mortgage before the end of the product period, there will usually be an early repayment charge to consider. This can be a considerable fee to pay.
If you move house your discount rate may be ‘portable’, which means it might be possible to move it to a new property. Moving is still treated as a new mortgage application so you will need to meet the lender’s affordability checks and other criteria to be approved for the mortgage.
Tracker mortgage rate
With your Tracker Rate mortgage, the interest rate you pay will be directly linked to the Bank of England Base Rate throughout the initial product term. Tracker rate mortgage payments will increase or decrease if rates go up or down.
This means that you will not have the certainty of knowing what you will pay each month. You may initially be paying less than if you had fixed your interest rate, but the downside is that if interest rates rise, you may be paying more than you would have done, had you fixed your rate.
When the product term ends, the tracker link will be removed, and the mortgage will move onto the lender’s standard variable rate (SVR).
The SVR you move on to, at the end of the product term, will be higher than your tracker rate, which could lead to a significant increase in your monthly repayments, so you need to plan for this. You should speak to your adviser, around 6 months before the end of the product period to look at the options for you.
If you wish to repay the mortgage before the end of the product period, there will usually be an early repayment charge to consider. This can be a considerable fee to pay.
If you move house your discount rate may be ‘portable’, which means it might be possible to move it to a new property. Moving is still treated as a new mortgage application so you will need to meet the lender’s affordability checks and other criteria to be approved for the mortgage.
Standard mortgage rate
With your Standard Rate mortgage, the interest rate you pay will be directly linked to your mortgage provider’s Standard Variable Rate (SVR). Standard rate mortgage payments will increase or decrease if rates go up or down.
You have opted not to have a fixed rate, or a discount applied to your mortgage rate or to have it tracking the Bank of England Base Rate. These options may have offered a lower rate of interest but would also involve an early repayment charge.
It is possible that you will initially be paying less than if you had fixed your interest rate, but the downside is that, if interest rates rise, you may be paying more than you would have done had you fixed your rate. This also means that you will not have the certainty of knowing what you will pay each month.
As you are on a standard rate mortgage you have no product term, which means that you have no early repayment charges to consider should you wish to repay the mortgage. You should speak with a mortgage advisor to look at your options, should your circumstances change.