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This information does not contain all of the details you need to choose a mortgage. Make sure that you read the separate key facts illustration before you make a decision.

The information provided by the calculator does not constitute a formal mortgage offer

Mortgage Summary

There are many different types of mortgage on offer to suit many different purposes.

Variable Rate:

Payments go up and down in line with interest rates.

Capped Rate:

The interest rate is variable but will not go above an agreed limit for a guaranteed period. This will usually change to the standard variable rate at the end of the period.

You may have to pay an early repayment charge for repaying the mortgage early.

There is likely to be an arrangement fee.

Fixed Rate:

You will pay the fixed payments for a guaranteed period. This rate will usually change to the standard variable rate at the end of the period.

There is usually a choice of terms available.

There is likely to be an arrangement fee payable to the lender.

If you change your mortgage product and/or lender during the period in which you are tied, early repayment charges may apply.

Discounted Rate:

You will start with a discount off the standard variable rate, for a limited period.

After the discount period ends, the rate will usually change to a standard variable rate.

There is likely to be an arrangement fee payable to the lender.

If you change your mortgage product and/or lender the period in which you are tied, early repayment charges may apply.

Flexible Mortgage:

With this you can vary your payments.
You can also take payment holidays, depending on certain conditions.
You could pay your mortgage off early.
You may still incur interest charges during a payment holiday period.

*Buy to Let:

This is if you want to buy a property and let it out
Variable and fixed rates are generally available.
Any income you get from rent must be more then you have to pay for the mortgage payment.
This is no guarantee that the rental income will be enough to pay the mortgage or that it will be possible to arrange continuous letting of the property.

Cashback Feature:

You will receive a cashback after completion.
This could particularly appeal to first time buyers.
There is likely to be an arrangement fee payable to lender.
If you change your mortgage product and/or lender during the period in which you are tied, early repayment charges may apply.

Mortgages have been regulated-What does this mean for you?

On 31 October 2004, the Financial Services Authority (FSA) took responsibility for the regulation on home loans. This affects the way mortgages are sold and aims to improve the standard of the advice you can expect to receive.

All mortgage advisers must be regulated by the FSA. You will get two documents when you receive your mortgage advice - the Initial Disclosure Document and the Keyfacts Illustration. For more information please ask your mortgage adviser.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Repaying the loan

Option 1:

A Repayment Mortgage:

A repayment mortgage works in the same ways as most types of loan. You make a regular monthly payment to the lender.

This payment will be made up of capital (in other words, repaying the ongoing amount you've borrowed) and interest.

So as long as you always keep up the correct payments, at the end of the term you will have repaid the loan in full.

Option 2:

An Interest Only Mortgage:

With an interest only mortgage, you pay only the interest to your lender. This means you need to make a separate payment into some sort of savings plan. The amount you pay into the savings plan aims to build up a lump sum to pay off the mortgage at the end of the term.

The three main types of saving plans are: endowment policies, ISAs and pension plans.

You must keep up the payments or you are unlikely to build up enough to repay the loan.

The investment plan you use is not guaranteed to pay off the loan and you will have to make up the shortfall if the performance does not meet expectation.

Option 3:

A Combination Mortgage:

Some lenders may allow you to combine both repayment methods. For example, this may apply if you took out an endowment mortgage for your first home for £100,000 and you are buying your second home at a cost of £150,000. You may want to keep your endowment until your policy is due for payment, but borrow the extra £50,000 as a repayment mortgage.

If you are a first time buyer, you can use an existing savings policy such as an ISA, to contribute towards a combination mortgage, or an interest only mortgage.

For more free advice and to make an appointment please contact us

*Not all forms of mortgage are regulated by the Financial Services Authority