Personal Mortgage Advice Warrington

Our Warrington mortgage advisor team will help you to get the most suitable mortgage deal for your circumstances. You have three main choices to consider as follows:-

Choice one:

Repayment or interest only.

Repayment Mortgage

Your monthly repayments take into account the repayment of all the debt and the interest accrued over the term you agree. It means your monthly payments both cover the interest accrued and reduce the capital you owe so at the end you owe the lender nothing.

In the early years, most of your monthly repayments go towards paying the interest. Gradually, as you reduce what you owe, your repayments go towards paying off the capital owed.

Interest-only Mortgage

Interest-only deals will only be offered where there’s a credible plan to repay the capital.  This can come with some form of repayment vehicle: ISA, endowment, investment bond and in certain circumstances defined benefit pension schemes depending on certain circumstances.  These types of deals have become harder to acquire since changes to lending became mandatory in April 2014.


Choice two:

Fixed or variable rate mortgage

Fixed-rate Mortgage

These are normally offered for a period of two years, but deals are available on the market for 10 years.  These types of arrangements suit cautious investors who need certainty of payments over a fixed period. 

Example:

If employed on a fixed contract:  With Bank Of England base rates set to rise in the coming years, some clients want the peace of mind that they can afford the monthly repayment if interest rates rise by more than 2% (base rates).  They are great for budgeting incomes and providing certainty.

Variable Rate Mortgage

Your monthly repayments are subject to change on a variable basis.  Changes to the Bank of England base rate normally mean that rates at which you repay will move in the same direction.  There are three categories of variable rate: trackers, standard variable rates (SVRs) and discounts.

Tracker Mortgage

These track the Bank of England base rate and fluctuate on a monthly basis as the policy committee set rates each month.  They are very popular in times of low or falling interest rates.

Standard variable rate (SVRs)

Every UK lender has an SVR that they can move when they want to. This tends to follow the Bank of England’s base rate movements. SVRs tend to be two to five percentage points above the base rate, and they vary between lenders. 

Discounted rate Mortgage

These deals offer discounts off a lender’s standard variable rate (SVR). Most of the discounts on offer tend to last for a relatively short period – typically two or three years, however there are now lifetime options. 

Capped deal Mortgage

A capped deal is a discount, variable rate, or a tracker mortgage which has an upper limit.  The rate is guaranteed so it can’t exceed a fixed rate.

Choice three:

Length of mortgage

Most fixed-rate deals have a two to ten year range and your monthly payments are fixed for the term. The longer term you use, the more it will cost.

As well as choosing the length of your fixed term deal you need to choose how long the mortgage will be in place.

To help you to explore all of your options our Warrington mortgage advisor team offer an independent mortgage advice service.  Contact Assured Wealth and Estate Planning Warrington IFA team today to book a FREE Warrington mortgage advice review.

Your home may be repossessed if you do not keep up the repayments on a mortgage or other loan secured on it.

 

Why Choose us

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