essesntial to get to the right Mortgage / Loan where purchasing or
refinancing your property. The right Mortgage will ensure
you receive an higher yield from your property, allowing you to
increase your profit and also save towards your next
To aid you
choosing the correct mortgage for your property, we have broken down
and provided a breif description on the most popular types of
Most Popular Types Of Mortgages:
Standard Variable Rate
This is the
rate of interest a lender charges on its basic variable rate
mortgages. This means that when the lender changes its standard
variable rate, either up or down, the borrowers' payments move
where the rate of interest you pay is the same for a fixed period,
for example three years, regardless of where base rates move in the
meantime. At the end of the fixed period, the lender's standard
variable rate will normally apply.
a fixed 'cap', an upper rate above which the rate of interest will
not rise. However, below that level, the rate will fluctuate in line
with the lender's standard variable rate.
the lender's standard variable rate is reduced by a set percentage.
If the standard variable rate changes so will the discounted rate,
but it will remain the same percentage below the main rate - 2 per
cent is typical. Discounted rates usually last for a fixed period,
say one or two years.
Interest is at
a set margin above the Bank of England's base rate and changes as
the base rate changes. Whenever base rates are cut, your mortgage
payments fall : if it rises, your payments go up, irrespective of
what happens to the lender's standard variable rate.
With this type
of mortgage, the borrower receives a cash lump sum on completion of
the mortgage, which will either be a percentage of the mortgage loan
or a set amount. In return, you are tied into the mortgage for
several years at the lender's standard variable rate.
100 Per Cent
advance the full purchase price of your property. Repayments are
usually somewhat higher than for 90 or 95 per cent mortgages and the
borrower will also have to pay a fee for not providing a
information into the finance and mortgages please contact NR
Associates, their contact details