Why You Should Never Pay a Standard Variable Rate

The standard variable rate, or SVR, is the basic interest rate on which a mortgage lender bases all its mortgage deals. These average about two percentage points above the Bank of England’s base lending rate. So if the Bank’s base lending rate is 5.5 per cent, most mainstream mortgage lenders SVRs will be around 7.5 […]

What Is a Standard Variable Rate Mortgage?

aka the variable Rate Mortgage   Every mortgage lender has a standard variable rate, (SVR), of interest on which it bases all its mortgage deals. The standard variable rate is, in turn, based on the Bank of England’s base lending rate and this is decided at monthly meetings of the Bank’s monetary policy committee, or […]

Should I Fix My Mortgage for 25 Years?

Most mortgage deals with interest rates that are fixed or discounted last for two to five years. At the time of writing, out of the thousands of UK mortgage deals, fewer than 150 are fixed rates lasting ten years or more.   And there’s a good reason for this. Most people realise that signing up […]

Should I Go For a Fixed Rate Mortgage or a Discount Rate?

UK Mortgage lenders offer a whole raft of deals that are priced lower than their standard variable rate (SVR) of interest, and this can make choosing a loan seem very confusing. But, actually, most of the deals on offer are basically fixes or discounts, and deciding which you prefer is a major step towards selecting […]

Pros and Cons of Fixed Rate Mortgages

If you’re considering taking out a fixed-rate mortgage, here are some more things to consider. If the idea that your mortgage payment could change from month to month worries you, it’s worth giving fixes some serious thought. The mortgage lender guarantees not to change your interest rate, and therefore your monthly payment, for an agreed […]

What is a Fixed Rate Mortgage?

This type of mortgage is where you and the mortgage lender agree to fix the interest rate owed on your loan for a set period of time. The period of time is usually between 1 and 5 years but could be longer. (That simply depends on the exact mortgage deal you choose). After the agreed […]

The True Cost Of an Interest-Only Mortgage

People tend to choose interest-only mortgages because they think they’re cheaper than repayment (capital and interest) mortgages. And in the short term, this is true. You are repaying only the interest on the original sum borrowed known as the capital so the monthly payment is considerably lower than for a comparable repayment loan. However, this […]

How to Change From an Interest-Only to a Repayment Mortgage

With an Interest-only mortgages your monthly repayments cover only the interest charged on the money you’ve borrowed. This means your monthly costs are far lower than with a repayment mortgage, where the repayments include a proportion of the sum borrowed  – ie the capital – as well as the interest. The problem with an interest-only […]

Repayment Mortgages: Frequently Asked Questions

We’ve put together a list of the most commonly-asked questions about repayment mortgages to help you understand their pros and cons.   Question: How many years can I take out a repayment mortgage for? Answer: While the standard term used to be 25 years, it is now possible to take out repayment mortgages for anything […]

How Easy Is It To Get A Repayment Mortgage?

Repayment mortgages are usually the easiest type of mortgage to get because they offer the lowest risk in the long term, guaranteeing that the borrower will have no outstanding mortgage debt on their home once the mortgage term is complete. However, the downside of applying for a repayment mortgage is that you may find you […]