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Mortgages

A 'not one size fits all' approach. Independent Mortgage People can offer you advice on what the best mortage is for your situation, from the entire market!

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Mortgage Rates

Mortgage interest rate is the most important element of your mortgage deal. The interest rate determines how much interest you will have to pay back over term of the mortgage. We have combined a guide below for a different mortgage rate available in the market.

Fixed Rate

Fixed rates are self explanatory in their own right. It means that a fixed rate is payable for a  period of time. This scheme shelters from increasing rates and allows for easy monthly budgeting. Also there will be almost certainly early repayment charges attached to the mortgage deal. If rates fall sharply during the fixed period you will be left paying relatively high rate.

Variable Rate

The Bank of England base rate affects the variable rate over time. For example, the lender may choose to have a variable rate of 2%. This simply means that your mortgage interest rates may follow the pattern of the Bank of England’s current figures, plus the additional 2%.

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Discounted Variable Rate

Lenders often come up with discounted variable rates. The lender will offer a reduced rate for a certain period of time. This means that the repayments will be lower initially, depending on the discount. When the discount period expires the interest will revert to the lender’s normal variable rate. There are usually early redemption or repayment charges due to the discounted period.

Tracker Rate

Tracker rate mortgage is quite similar to discounted rate except that this is linked directly to the Bank of England Base Rate and will move in line with the market. Early repayment charges are also generally payable. It is usually more flexible for overpayments than a traditional discounted or fixed rate.

Offset Mortgages

Offset mortgage is ideal for mortgage borrowers who wish to utilise their savings more tax efficiently. Also it is designed for people who wish to overpay with regular lump sums but may require access to that money later. Rates are generally trackers without early repayment charges. The rate is often linked to the base rate for the whole term of the mortgage.

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Capped Rates

A capped rate mortgage helps you plan your budget more effectively. The interest rate cannot rise above an agreed ceiling limit. When interest rates come down however, the borrower benefit because monthly payments are reduced although there may also be an agreed floor level. This makes it particularly attractive if interest rates look like they are quite volatile over the period. The capped rate is for a particular period of the mortgage term. At the end of the capped rate period the mortgage rates revert back to the appropriate variable rate.

Cashback Mortgage

A cashback mortgage provides a lump sum back once the purchase is completed. This can either be in the form of a set amount or a percentage of the amount that is borrowed (typically two to five per cent). The cash back is refundable if the mortgage is settled before a particular period set by the lender.

Flexible Mortgage

Flexible mortgages were developed to cope with the borrower’s lifestyle or drastic changes that can occur in a borrower's financial situation (for example, hob loss through redundancy). Sometimes are also known as 'open plan' or 'freedom mortgages'.

Few of their features are as follows:

  • Lump sum payments towards the mortgage
  • Payment holidays
  • Monthly overpayments
  • Allowance of withdrawal of a pre-agreed further advance
  • Reducing or stop making payments during difficult financial situation

Current Account Mortgages

Current account mortgages combine the current account with your mortgage. These are designed to pay off your mortgage quicker. The advantage is that when interest is calculated on the sum borrowed, the funds in the current account are taken off the mortgage

Independent Mortgage People Ltd. is an Appointed Representative of JLM Mortgage Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Registration numbers 758712 and 300629. Further details may be found by visiting www.fca.org.uk. Registered Office: 6 Viewpoint Hyatt Trading Estate, Babbage Road Stevenage, Hertfordshire,SG1 2EQ. Registered Company Number 09523560, Registered in England and Wales. We typically charge a fee of £495 to be paid when you complete on a mortgage arranged by us. We will also be paid commission by the lender and the fee will be reduced by this amount. Where the commission from the lender exceeds £495 we will not charge a fee. So, in many cases, no fee will be payable.

Your home may be at risk if you do not keep up payments on a mortgage or any loan secured upon it.

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