Good To Know

We know mortgage language can be bamboozling and it's easy to feel confused and a little lost.

Below we’ve tried to incorporate some basic information which you may find helpful.

Repayment types

Capital & Interest

Arranging your mortgage on this basis will ensure that the loan is repaid at the end of the term so long as your payments are up to date. It is commonly known as a repayment mortgage. Choosing the length of your repayment mortgage will affect the monthly payments and allow you to remain within a pre-determined budget figure.

Interest Only

In contrast to repayment mortgages, the interest only structure will not see your loan reduce. If you borrow £200,000 for 20 years and adopt Interest Only you will still owe £200,000 in 20 years.

Interest Only does have an important part to play in the marketplace and is popular with those wishing to retain control and flexibility over when their loan is repaid.

Quite rightly lending criteria is stricter when seeking an Interest Only mortgage. We can discuss fully whether this is the correct route for you.

Steve has provided mortgage advice to me for nearly 10 years, covering multiple products and requirements. What sets Steve apart is his strong client-centric service, listening to our needs and providing his expertise to find the most appropriate products. He was referred to me by a close friend and I have also recommended him to others - a strong endorsement of his services.

R & C

Rate types

Fixed Rate Mortgages

Hugely popular because they provide security over monthly payments for an agreed period of time. At Vanner Mortgages we never want you to resent making a mortgage payment, and so budgeting is vital. Fixed rates enable this, and we’ll be able to discuss in detail the length of time that fixing will be most suitable for you.

Discounted Variable Rate Mortgages

Lenders each have a moving lending rate known as Standard Variable Rate (SVR). As part of their product range some lenders will offer a discount from their SVR for a specified period of time (most commonly 2 or 3 years). The pay rate can rise and fall dependent on the SVR.

Tracker Mortgages

Linked to a moving designated external index such as the Bank of England base rate, which is most common with many lenders. Generally, a margin is set by the lender which tracks the movements of base rate and this determines the interest rate payable which of course can rise or fall.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE