Tracker Mortgage – a type of variable rate, which means you could pay a different amount to your lender each month. Tracker rates work by following a particular interest rate to determine what you pay each month (for example, the Bank of England base rate), then adding a fixed amount on top. If the base rate goes up or down, so does your interest rate.
Capped Rate Mortgage – These are variable mortgages, but with a cap on how high the interest rate can rise.
Cashback Mortgage – the mortgage lender pays you a lump sum of cash. This can be around £500–£1,000. You might find that these mortgages don’t come with other incentives, like free valuations or free legal’s, however, why don’t you get a member of our team to check.
Flexible Mortgage -a flexible mortgage will allow you to over pay and underpay on your mortgage, and also allow you to take payment holidays if this is required. It is worth noting a flexible mortgage may result in the interest rate being higher. A type of flexible mortgage is shown below (an Offset mortgage)
Offset Mortgage – this mortgage type allows you to use savings (account must be held with the same provider as the mortgage) to reduce the amount of interest you need to pay on your mortgage. For example, You have £10,000 in your savings account, and £100,000 left to pay on your mortgage. With an offset mortgage you only need to pay interest on (£100,000 – £10,000 =) £90,000 of your mortgage
What Fees are involved in re-mortgaging? – The following fees that can occur are:
- Arrangement fees: a number of mortgages have arrangement fees which can cost anything up to £2,000.
- Legal fees: you may also have to pay for a solicitor to take care of any conveyancing if you are to re-mortgage with a new mortgage lender.
- Administration fees: the mortgage lender may include charges for the cost of setting up your re-mortgage.
- Valuation: A valuation will also need to take place to make sure the property value meets the needs of the new lender.