Money Outlet

Perhaps the most important purchase you’ll ever make is buying your home. There are a number of details to keep in mind when looking for a new mortgage, or even a remortgage. In today’s market there are 100’s of UK financial institutions including banks, building societies, and special credit lenders all competing for your business.

Here at the MoneyOutlet we realise that the majority of people seeking a mortgage or remortgage are simply overwhelmed with the choices available or may not be aware of all the special rates which can be difficult to find. Apply now to compare over 8,000 cheap mortgages.

Simply fill in your requirements in the form above and you’ll get a free, personalised mortgage quote from a CeMAP certified mortgage broker to help you find the perfect deal instantly! Using a mortgage broker in the beginning is perhaps one of the smartest choices you can make in addition to saving you a lot of time.

There are over 8,000 mortgage products available to you and this is when the confusion sets in. With such an important decision to make, you’ll want to compare the market for the best deals from the beginning. See what’s on offer in 2008 – Save Time & Money and Apply Now!

The most common UK mortgage schemes – A General Guide

• Repayment Mortgage: Also known as a ‘capital and interest’ mortgage, means each monthly payment is credited toward both the capital (amount you borrow) and the interest on that capital. In the early years, the majority of your repayments will mostly go to pay the interest.
• Interest Only Mortgage: The borrower pays to pay only the monthly interest on the capital borrowed according to terms set at the beginning of the mortgage. These monthly payments will be lower than a repayment mortgage however, the borrower is then responsible for paying the entire capital borrowed at the end of the term in one lump sum.

Most people opt for a repayment mortgage because they will want to pay off part of the capital they borrowed along with the interest. The first several years during a repayment type mortgage you’ll notice that the majority of payments are only paying off the interest. However, toward the latter years of the term each payment will be paying off more of the capital than the interest.

With an interest only mortgage, you can expect lower monthly payments as you are only paying back the interest on the capital. One word of caution, you must decide from the beginning how you will pay the amount you borrow as the lender will expect a one lump sum payment at the end of the interest only term. Speaking to an Independent Financial Advisor to set up an investment scheme, endowment policy or a pension such as an ISA is recommended and may be required by the lender.

Once you decide on the type of mortgage you will pursue, you must then consider your preferred mortgage interest rate plan. Below you’ll find some helpful examples.

Mortgage Interest Rate Schemes

• Fixed Rate Mortgage: Here you are able to secure your repayment amount each month as the interest rate will be the same over an agreed period of time. For example, your mortgage repayments will consist of a fixed interest rate for a specified period, typically ranging from 1 to 5 years, allowing you to know exactly how much you have to pay each month. After your fixed period ends, your mortgage interest may change to the lender’s variable rate which is based on the Bank of England’s base rate.
• Variable Rate Mortgage: Based on the Bank of England’s base rate, your lender will determine their own variable rate. Your repayments may go up one month and down another, depending on fluctuations with the base rate. Unlike fixed rate mortgages, you won’t always be able to predict your monthly repayments.
• Discount Rate Mortgage: As an incentive to earn your business, lenders may offer a discounted rate which will be lower than their normal variable rate by a percent or two. Just like a variable rate mortgage, your payments may go up or down on occasion however, your discounted interest rate may be lower than any other mortgage product. Keep in mind, if you switch to another lender you may be subject to an early repayment fee.
• Capped Rate Mortgage: The advantage of a capped rate mortgage is that your lender will set a ‘cap’ as to how high your interest will go and you won’t pay above this capped rate no matter the changes in the base rate. So, you’ll know in advance that your interest will never rise above a certain level.
• Flexible Rate Mortgage: This type of interest scheme allows you to either overpay your minimum monthly payments when you can afford it and underpay during those months where you may not have the extra cash. The benefits of a flexible rate mortgage means you can reduce the capital on the loan and save £1000’s if you’re able to overpay each month.

Listed above are the most common mortgage schemes however, there are many more options available to first time buyers, people looking to remortgage, and those struggling with credit problems.

Today there are literally 1000’s of UK mortgage products and locating the best deals, understanding your choices that each lender offers is a difficult task to say the least. You’ll want to spend some time thinking about which mortgage product will suits your circumstances best and it’s highly recommended you consult a qualified mortgage broker to get free, expert advice before making this all important decision.

Here at the MoneyOutlet we work with a vast network of UK mortgage brokers with special access to banks, building societies, and special adverse credit lenders. Worried about having bad credit, CCJ’s, mortgage arrears or filed for bankruptcy or an IVA? We can help! We cater to all credit types and will connect you with CeMAP certified mortgage brokers eager to help you find the best mortgage for your needs. You safely and securely provide your requirements in the form above and we immediately begin searching 1000’s of low rate mortgages based on your specific needs. You’ll receive your free, no obligation quote without a credit check (important!).

Why not see how we can help you today? Use www.moneyoutlet.co.uk to search and compare online and help find you the best available mortgage loans in today’s market no matter your credit status.