Mortgages come in many shapes and sizes, so it can be complicated and difficult to find the right one to suit your needs or your wider financial planning aspirations. Your Sandringham adviser will work with a range of carefully selective lenders to get you a mortgage which suits you best, and ensure the whole process run smoothly.
There are 2 main types of mortgage:
You borrow an agreed amount and repay it on a monthly basis, thus reducing the outstanding amount plus interest. You do this until the total is repaid within the duration (the terms) of the agreement.
In this case, you only repay the interest making repayments much cheaper. However, the loan (the capital) amount remains the same and you will need to repay it in full within the duration of the agreement. You will also need to show how you intend to repay the capital.
There are also mortgages available which are a combination of repayment and interest only.
Different types of interest rates
With a fixed-rate mortgage your repayments will be the same each month either for the full duration or over a negotiated set period. This type of arrangement is excellent for managing household cash-flow, but may mean you ‘feel’ you’re paying more than you should be, or less than you could be because of shifting interest rates.
A variable rate mortgage means you repay – again on a monthly basis – an amount in line with Bank of England Base Rates. And whilst it’s true base rates have been historically at their lowest for some time now, your repayments could still go up.
Knowledge and expertise
There is so much to consider when making what is likely one of the biggest financial decisions of your life, whether you’re a first-time buyer, moving on, downsizing, or even buying a second home. Plus, there’s the important consideration of what mortgage protection cover you need, in the event of illness or sudden death. Your Sandringham adviser will be able to help you make the right choices.