"The Easy Way to Get Your Best UK Mortgage" |
|
|
|
|
|
|
||||||
|
|
How to get a Mortgage
Here we give you a step by step guide on how to get a mortgage with special tips
I'm
employed -
shortcut
I'm
self-employed
-
shortcut
I'm
buying my first mortgage
-
shortcut
I've
got a bad credit history -
shortcut
Mortgage
Guide
How to Choose your Mortgage
Types of Mortgage
Where to Find Your Mortgage
Getting a Mortgage in Principle
Types Of Mortgage
The
two major varieties:
Repayment
mortgages
Interest
only mortgages
Then
mix in the various:
Interest
repayment arrangements
Finally, there's a Complete A-Z of mortgages
Discounted Rate
This is an interest repayment variation. To tempt new customers most lenders will offer a new borrower a discount on their standard variable rate, for a set period.
Your payments will go up and down, as with a normal variable mortgage, but you're paying less.
After the agreed set period the interest rate will switch into the mortgage lender's usual variable rate.
So it may be worth checking what their track record has been for their variable rate charge because, if they're pricier than most, they're unlikely to have changed and you may end up as one of the mugs paying over the odds.
The rate for new borrowers is usually lower than for existing customers. So try to shake off that customer inertia and change mortgage lenders every couple of years - having checked, of course, that there's no penalty for leaving.
The penalties for changing to another mortgage lender may last longer than the agreed discount term. But they're usually less than for a fixed rate period.
Good points: You're paying less. Doh!
Bad points: You're locked in for the agreed term so if the interest base rate goes up you're stuck. However when the period ends, you can swan along to the next best discount rate.
The shorter the term the better. You probably don't want to tie yourself down for longer than 2 years.
Back
to this
section's contents
