Mortgage products matched to your new home

We discuss the various mortgage products available and recommend the most suitable product for your circumstances. To learn more about mortgages read our Mortgage Brochure. Call us now on 01727 845500 or book a review.

Fixed Rate Mortgages

The interest rate on a fixed rate mortgage stays the same for the term that the chosen product is valid for e.g. 2 or 5 years, even if the Bank of England puts up UK interest rates. You can normally fix your mortgage term for any period, but many fixed mortgages work for a 10 year term.

Advantages

  • You know how much your monthly mortgage payment will cost, to help you budget.
  • Your monthly payment remains the same even if interest rates rise.

Disadvantages

  • You miss out on a lower monthly mortgage payment if interest rates fall, and your lender cuts their mortgage rates.
  • Some fixed rate products are expensive to set up.
  • Early repayment charges may apply if you want to repay your mortgage.

Tracker Mortgages

A tracker mortgage is a variable mortgage that tracks the Bank of England base rate, at a set percentage above or below it. For example, if the base rate is 5.25% and your tracker mortgage is 1.25% above base rate you pay a monthly rate of 6.5%.

Advantages

  • When interest rates are low tracker rate mortgages may offer lower monthly repayments.
  • Your interest rate is dependent on the Bank of England base rate and is not affected by your lender's standard variable rate.

Disadvantages

  • Monthly payments may increase significantly if interest rates rise quickly.
  • You could be charged an early repayment fee to change products.
  • Some lifetime tracker products are available, but most tracker mortgages run for less than 5 years.

Discount Rate Mortgages

A variable rate mortgage offering a discount on a certain interest rate, normally a lender's Standard Variable Rate (SVR). A lifetime discounted rate covers the entire mortgage term, but more commonly discounted products can be purchased for a two-to-five-year term.

Advantages

  • Lower interest rates apply in the discounted period as your rate remain below your lender's SVR.
  • In periods when SVR's are generally low, discounted rate mortgages offer reduced monthly payments.

Disadvantages

  • Early repayment charges apply to many discounted mortgages.
  • If your lender's SVR increases your mortgage costs will increase.
  • If your discounted mortgage rate is below your lender's SVR your mortgage costs may increase when the discounted rate period ends.

Variable Rate Mortgages

A variable rate mortgage tracks the standard variable mortgage interest rate of your lender. This interest rate will normally go up or down after the Bank of England changes interest rates, but your lender is free to change it at any time.

Advantages

  • You may benefit if interest rates fall.
  • The arrangement fees for standard variable mortgages can often be lower than fixed or tracker mortgages.
  • Lenders often won't charge fees for early repayment.

Disadvantages

  • If interest rates increase very quickly you may find your monthly payments increase significantly.
  • Variable rate mortgages can be expensive compared to tracker and discounted mortgage products.
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Mortgage Calculator

What can you afford each month?

Use our Mortgage Calculator to estimate how much your mortgage will cost each month. Contact our Mortgage Brokers for an exact quote.

Mortgage Amount £100,000
Monthly Interest £83.33
Monthly Payment £376.87

This is intended as a guide to how much you would pay each month. It is important to contact our mortgage brokers to review your mortgage affordability for your financial situation.

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