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Residential mortgages

Residential mortgages are mortgage agreements used to finance the purchase of a residential property which you typically would live in.

A residential mortgage normally has a term of one to 40 years.  The term of the mortgage that you choose will depend on your age and affordability.  The shorter the term the less interest you will pay.

What is the difference between fixed and variable rate mortgages?

If you take out a fixed rate mortgage, the interest rate you pay will be fixed for an initial period, regardless of rate changes made by the Bank of England.  Fixed rates are typically two, three, five or occasionally ten years, with the interest rate reverting to the lenders standard variable interest rate once the fixed period ends.

For those who want the peace of mind of a fixed monthly cost, and for anyone who doesn’t want the risk of fluctuating interest rates, fixed rate mortgages are appealing.

Variable mortgage rates can vary during the mortgage term, meaning that borrowers will not have the security of knowing how much their repayments will be every month, but because the mortgage comes with the uncertainty of interest rates either rising or falling in the future, the initial rate is often much lower than with fixed mortgages.

The cheapest deals – best buy tables can be deceiving!

It is important to look beyond the headline interest rate of a product.  A low rate on a fixed mortgage may look attractive, but keep an eye out for the subsequent rate, as well as any arrangement fees, exit charges and early repayment costs.  The lowest interest rate is not always the best or cheapest deal.

Make sure you also consider the costs of legal and survey work as well as any Stamp Duty Land Tax payable on purchases.

We will search the whole of the market to find the best deal for you.  Give us a call and save yourself time and money!