A fixed rate mortgage means you fix your rate for an agreed period of time with a lender. They vary in fix rate periods from 2, 3, 5, 7 and 10. Fixed rate mortgages can be popular to allow you to budget monthly, it allows you to have peace of mind to know the exact monthly payment during the fixed rate period. Most lenders will also allow you to overpay the mortgage around 10% per year, allowing some flexibility.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
A tracker or variable rate mortgage means your monthly payments can change month on month, depending upon the rate your mortgage is tracking (typically the Bank of England Base Rate). These type of mortgages will allow you to benefit from when rates are decreasing immediately while also having some additional flexibility on overpayments. The downside to these mortgages means if rates do increase your payments will do too.
Repayment Mortgages mean you will pay interest and capital to your lender. Gradually your mortgage will reduce allowing you to build up equity. At the end of your mortgage term as long as you keep up the repayments, your mortgage will be repaid at the end of the term
Interest only mortgages consist of you only paying the interest part of the mortgage. The monthly costs are lower, however it is your responsibility to ensure an adequate repayment method is in place. The repayment method would need to clear the mortgage at the end of the mortgage term.
ENDURANCE MORTGAGES LIMITED IS AN APPOINTED REPRESENTATIVE OF THE RIGHT MORTGAGE LTD WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. ENDURANCE MORTGAGES LIMITED IS REGISTERED IN ENGLAND AND WALES WITH COMPANY NUMBER 15060351. Worting House, Church Lane, Basingstoke, Hampshire, RG23 8PX . THE GUIDANCE AND/OR ADVICE CONTAINED WITHIN THIS WEBSITE IS SUBJECT TO THE UK REGULATORY REGIME AND IS THEREFORE TARGETED AT CONSUMERS BASED IN THE UK.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.