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Mortgage Advice
Searching for your ideal mortgage can be confusing. To help, here are questions you should ask a potential lender or adviser before you decide on a mortgage. Remember to use our mortgage advice as a guide only. Always consult a specialist before making any decision.
Remortgaging:
Loans:
General Advice
What different types of mortgage are available
As you may already be aware there are a huge variety of mortgages on offer. You must ensure that your advisor fully explains the differences between the mortgage deals they have. For example, many lenders offer fixed rates, cashbacks and discounts across a number of different terms.
You should be given an explanation of the different ways of paying the capital off.
Interest Only - Designed to be repaid using proceeds from an endowment, personal pension plan or ISA.
Repayment - Capital and Interest.
Types of Mortgages:
What rate of interest that will be charged?
If you are planning to take out a fixed, discount or capped rate the advisor should inform you as to the initial rate you will be paying. You should also be clear on how long you will receive this initial rate for.
What happens at the end of the discount rate period?
You need to question whether you will be offered another discounted or fixed rate deal. If not will you be switched on to a standard variable rate (SVR).
What is the lender's standard variable rate?
You should take a look at what existing customers with the lender are paying at the end of their fixed / discounted period. You should bear in mind that it is unlikely that you will be paying the same standard variable rate when your product comes to an end.
Work out your exact monthly payments
You should get your advisor to tell you exactly what your monthly payments will be. It is vital to find out what you would be paying at the standard variable rate to get an idea how much you will be paying after your product term ends.