This time of year is typically a popular time when many people look to move home, carry out modernisation or for many, buying their first home. Mortgages can be a complex area with many things or options to consider.
Whether you are a first-time buyer, a home mover or homeowner looking to re-mortgage, it is always advisable to seek impartial advice before making any decisions regarding your mortgage.
What are the options?
There are advantages to all mortgage types, but knowing which is best for you depends on many personal factors.
Which is best for me? The two main mortgage types are Either Fixed Rates or Tracker Rates
Fixed Rate Mortgage
A Fixed Rate mortgage is where the interest rate charged remains the same throughout a given initial period, usually 2-5 years, but can be longer. This allows you to budget accordingly, as your monthly payments will be the same. You will, however, normally be locked in for that specific period of time, so while this is good if interest rates stay the same or go up, if they fall you won’t be able to take advantage of this without penalty. However, the overriding benefit is the peace of mind of knowing you are able to budget because you are protected against rising rates.
A Tracker Mortgage is directly linked or tracked to the Bank of England base rate, and can therefore vary without too much advance warning. Generally the rates are only slightly lower than fixed rate contracts, but you don’t have the same security, as the rate is variable, meaning it can and probably will change making it less easy to budget.
Tried and Tested Advice
At Cotswold Financial Planning, our experienced and impartial advisors are knowledgeable about all aspects of mortgages. We can carry out wide research into the market to tailor the most appropriate mortgage to your individual circumstances and criteria. We offer an individual bespoke service to cover all aspects of home buying.
Home purchase is probably the biggest financial commitment most of us will ever make, and it can be a daunting process. We aim to get all the facts and figures for you to enable you to comfortably make the right decision and will make sure that you are kept up to date all the way with any information you may need.