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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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| With 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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| There
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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| Your
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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| Your
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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