When buying a house the normal thing to do is check out rates with your Bank or Building Society and look for the best deal.. Often your Estate Agent will “Help” by introducing you to their in-house mortgage broker, which is great but not necessarily the best way to get a mortgage that is best for you. There is a plethora or options in the market and each one will have something to offer depending on the type of investment you are making and budget you have.
Home purchase
Second Home / Holiday Home
Buy to Let
House of Multiple Occupation
Serviced AccommodationEach will have it’s own particular requirements and depending on the individual buying, there may be different options available.
Before choosing, we would suggest that you get at least three quotes from different providers. You can use your Estate Agent’s chap, but we would suggest you also find an “All of Market” broker, or two, as each will have an opinion as to the best option, but also will have different fees.
In the article below Martin Lewis gives a general idea of different types of mortgage and the full article Click here to view original web page at www.express.co.uk
When buying a house, the homeowner will usually need to get a mortgage to help with the payment. Although most homeowners will have a mortgage, each person might opt for a very different plan depending on what is best for them. For many buyers, the choice will be between a fixed-rate mortgage or a form of a variable mortgage. Each mortgage will be better suited for different people, but what are they and who are they best for?
First of all, the homeowner must decide if they want to follow a fixed-rate mortgage or choose a variable option.
Fixed-rate Mortgage
Fixed-rate mortgages have the same interest rate for the entire repayment, or an agreed period, which means the size of the monthly payment will not change.
This type of mortgage comes with more stability than a variable one, but the homeowner can be stuck paying a higher rate if general mortgage rates do go down.
Variable Rate Mortgage
A variable rate mortgage has an interest rate that will change from time to time as mortgage rates change and there are different types of these.
Opting for one of these can be good for buyers who think mortgage rates will go down.
Tracker Mortgages
With the tracker mortgage, the homeowner will choose an interest rate percentage they will always pay as a base rate.
On top of this, they will track the Bank of England base rate and pay that on top of their standard payment regardless of if this changes.
Discount Mortgage
For those hoping to take out a discount mortgage, they pay the lender’s standard rate, which will rarely change, and apply a fixed amount discount.
This is usually only for a fixed period and can help buyers who want a low rate of interest.
Before picking a mortgage, it is important the homeowner understands what this means and which one is best for them, seeking out expert financial advice is necessary.
Buy-to-Let Mortgage
Buy-to-let mortgages are usually only offered on an interest-only basis, which means the payments made will only cover the interest of the loan.
On the show The Martin Lewis Money Show: Live, Martin explained that he couldn’t be sure as to what would happen if the UK left the EU.
