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| At
MORTGAGES 4 U LTD we offer a range of mortgage and remortgage
products to accommodate the diverse needs of our applicants.
We have provided the basic details below to help you make a
more informed choice about what mortgage may be best suited
for your circumstances.
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Fixed
Rate Mortgage
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a fixed rate mortgage your payments will remain the same for
as long as the mortgage is fixed (typically 1-10 years).
At the
end of the fixed period the mortgage will revert to the lenders
standard variable rate applicabl at that time. You will be
able to remortgage at this time, and we will write to you
to remind you and review your options before your payments
change should you choose, however early redemption penalties
may apply.
If the
bank’s base interest rate rises, your payments will not,
which is excellent if you’re on a strict budget.
You’ll always know exactly how much your mortgage payments
will be for as long as the rate is fixed for.
If general interest rates fall below the figure you’ve
fixed your mortgage at, you don’t get to take advantage
of these savings and may have to continue to pay the higher
mortgage rate.
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| Variable
Rate Mortgage and Some (Tracker) |
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With a
variable rate mortgage, your interest rate is linked to the
Bank of England’s base rate and moves up and down in
line with it.This means that if the base rate rises by 1%
or lowers by 1%, the interest rate on your mortgage (and your
monthly payments) will rise or lower by just as much.The exact
amount can depend on whether your rate is linked to the difference
in the Bank of England rate or the lenders standard variable
rate. Lenders are allowed to individually set their own standard
variable rates and therefore rate increases and decreases
do not necessarily have to be fully passed onto to the borrowers.If
the base rate goes down, you’ll benefit from lower monthly
payments.
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| Discount
Rate Mortgage |
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A discount
rate mortgage is essentially a standard variable rate mortgage,
so it still moves in line with the Bank of England’s
base rate, but it also has a discount thrown in for a set
period of time (typically 1-5 years.)
An example
would be a lender offering 2% off of their standard variable
rate for a period of 2 years.
Like a variable rate mortgage, if the base rate goes down
so do your mortgage payments, but remember is the rates go
up so do your payments as well.
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| Repayment
Method |
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are two main repayment methods that you can consider when taking
a new mortgage,Capital and Interest and also Interest Only.
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| Capital
and Insterest |
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monthly payments gradually pay off the amount you owe as well
as paying the interest charged on the loan. Provided you make
all the agreed payments, the loan will be fully paid off by
the end of the mortgage term and you will own your property
outright.
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| Intesrest
Only Mortgages |
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monthly payments cover only the interest on the loan, the debt
does not reduce and you will still owe the same amount you initially
borrowed at the end of the term, provided you maintain the agreed
payments throughout the term.You will need to arrange to pay
separately into a savings or investment scheme (eg. pension
mortgage or endowment) to build up savings to pay off the mortgage
at the end of the term. It is your responsibility to make sure
you have enough money to repay the mortgage at the end of the
term.
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Do I Qualify? |
| MORTGAGES
4 U LTD can help people with a wide range of personal circumstances
but we specialize on helping people with credit problems and
trouble proving their income.
For more
specific details on the kinds of circumstances and credit
problems we cater for at MORTGAGES 4 U LTD, please visit our
Do I Qualify? section or enquire now.
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