Best Mortgage Deals
According to research in early 2005, borrowers could save by reorganising their finances and finding better deals. Over the course of a 25-year mortgage over £30,000 can be saved by some borrowers by moving to a better deal.
Here are some of the types of deal on the market at the moment. Explore Finance can help you access the best mortgage deals and ensure you get the right mortgage. The best mortgage deals for any individual will vary depending on your circumstances, so apply online [link] to get a personal quote.
Variable rate mortgages
Payments increase or decrease with interest rate changes, so you cannot predict monthly repayments.
Fixed rate mortgages
Repayments will stay the same for the period of the fixed rate, regardless of interest rates. This can protect you from changes if your budget is tight, and can offer some of the best mortgage deals if interest rates are rising. But if the variable rate falls your repayments will not, and at the end of the fixed period your mortgage will usually switch to a variable rate.
Tracker Mortgages
These are based on a variable interest rate (usually the Bank of England base rate) plus an added percentage.
Capped rate mortgages
These cap interest rates for a given period. Payments can rise but not above the cap, so you in effect set a maximum monthly repayment. These can offer some of the best mortgage deals if rates are fluctuating, because if the variable rate falls below the capped rate, repayments will reduce.
Discounted rate mortgages
You agree reduced repayments for a period, due to a discount. If the variable rate falls, so will your repayments. But if the variable rate rises, so will your repayments. These can be some of the best mortgage deals if you need help temporarily or initially with keeping your payments low.
100% mortgages
You borrow 100% of the value of the property, so pay no deposit. These may be more expensive, but can offer you the best mortgage deals if you don't have any money for the deposit.
Current account and offset mortgages
These operate your mortgage linked to a current account, and save interest as your finances offset the outstanding mortgage. This can reduce interest paid and repay the mortgage early, so they can be the best mortgage deals for some people.
Cashback mortgages
These provide cash back on purchase. These can be the best mortgage deals for people who need funds initially, such as first time buyers, or if you have put all your funds into the deposit.
Flexible Mortgages
These allow you to make extra payments when you have extra money, and possibly reduce monthly repayments or take repayment holidays, or borrow extra funds. They can be the best mortgage deals for some people, especially where you may be thinking of paying off extra sums.
Self-certification mortgages
These are available for contract and self-employed workers.
Buy-to-let mortgages
These are mortgages for buying property to rent.
Explore Finance can help you access the best mortgage deals and ensure you get the right mortgage. The best mortgage deals for any individual will vary depending on your circumstances, so apply online to get a personal quote.
