Are you looking for a mortgage? You may be pleasantly surprised to find out what’s on offer. Gone are the days when the only option was a 25 year loan at a standard variable interest rate. Today’s mortgage market is varied and inspirational and due to competition between lenders, borrowers are in an excellent position.
It’s an amazing fact that there are around 4,000 different loans available and flexible ones, first introduced in Australia and now catching on in the UK, are amongst the newest
There is no set term with a flexible mortgage. It’s completely up to you to make the choice of how you spend your loan, although it’s important to recognise that it is secured by your property so it is very important that you keep up to date with your monthly repayments. These mortgages can be based on either a repayment type, which is a better known sort of loan, or an interest only mortgage. It’s also possible to combine the two.
These mortgages would be ideal for someone who plans a break from their career for any reason, whether it is for family commitments, such as starting a family, travel, re-training or any other reason. Subject to your own personal terms, it’s possible to reduce or suspend payments for a period. You can also increase payments and get ahead in order to either take these breaks or to lessen interest costs. Funding your credit needs via this type of mortgage will be at a lower interest rate than that of credit card use. Remember, though, any loans are secured by your home.
Some of these flexible mortgages include a range of banking services, such as cheque books, credit cards and direct debit facilities. A word of caution though, flexible deals tend to have mortgage rates than some of the fixed rate deals around at present.
If you’re the type of person who likes to keep mortgage details separate from your personal banking then this type of mortgage may take some getting used to.
For the more traditional borrower, a repayment mortgage is worth considering. The advantage of this is that, as long as payments are kept up to date, the debt will be paid off in the term of the mortgage. It is simple, uncomplicated and also easy to manage. The monthly repayments are split between the cost of interest and the repayment of the capital borrowed. During the earlier years of the mortgage life a large part of the monthly payment will, for the most part, be paid in interest. As the years progress, however, more and more will go towards capital repayment.
It’s worth bearing in mind that there is a lack of flexibility in this method. In the early years, very little capital is being repaid and overall you may pay more interest than with a flexible product.
For advice and ideas, get on to the internet and find an on-line mortgage broker, who’ll be able to offer you details of the various mortgaging methods and the most favourable interest rates. Once they have your details they’ll come up with as many comparisons as you need.
Mortgages have certainly changed over the years and you should find that there’s one out there just waiting for you.
