Some of the main questions that you will need to think about when choosing a mortgage are:
Repayment or Interest Only?
With a Repayment Mortgage, you will pay off part of your debt each month along with interest so by the end of the term the whole mortgage is paid off and you own your home outright. In contrast, with an Interest Only Mortgage, you will only pay off interest, the debt will remain and you will need a plan for how you will pay of the debt at the end.
What Length Mortgage Term?
Depending on your age, it may be possible to get a mortgage term from between 5 years up to 30 years or even more. The longer the term you choose, the cheaper your repayments will be each month but overall the mortgage will cost you more as you will have paid more interest over the term.
Fixed or Variable Interest Rate?
If you choose a Fixed Interest Rate, your mortgage repayments will remain the same amount for a fixed amount of time (usually 2 or 5 years). In comparison, a Variable Interest Rate will change in line with the Bank of England base rate so you could see your payments increase or decrease in the future.
And Don't Forget...
- Your home may be repossessed if you do not keep up repayments on your mortgage.
- There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% and a typical fee is 0.3% of the amount borrowed.
- The guidance and advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.
- Please note that The Mortgage Hut is not responsible for the accuracy of the information contained within any linked sites accessible from our website.
Let The Mortgage Hut help you find the right mortgage. Make an appointment at one of our branches located in Southampton, Eastleigh, Basingstoke, Winchester, Newbury, Andover and London or give us a call for advice over the telephone.