Mortgages
Choosing the right mortgage for you can be a minefield, everyone telling you that "this is best for you " and your friends & colleagues are paying "much less than that"
At Lime Financial Management we like to give you all the information so you are fully aware of the facts before we make a reccomendation to you based on your needs.....
We Give our advice without using Jargon, just giving you the Facts about choosing the right mortgage for you!
The amount that you pay every month is based on the sort of mortgage that you aquire, so it is important for us as your advisor to know your short term plans as well as long term so that we are able to give you the correct advice. It is sometimes hard to be definative of what is going to happen in say three years time but we must try and make as accurate a judgement as possible. So knowing what each style of mortgage rate is, is vital.
We have compiled a list of all the different rates and their own specific criteria:-
For more information on any of these mortgage products please click the links on the right hand side or quick call us now and one of our qualified proffessional mortgage & protection specialists will contact you very soon.
Fixed
Your Payments are the same (i.e. fixed) for a certain period, say, two years, five years, ten years or even longer. Unless the rate is fixed for the whole term, you will revert to the lenders standard variable rate* at the end of whatever term of fixed rate you choose.Early repayment charges with fixed mortgages?
With most fixed rate mortgages there will be an early repayment charge during the fixed rate period and with some there may even be one after the end of this period.
Tracker
With this variable-rate loan, the interest rate is a set amount above or below the Bank of England or some other, base rate, and so always "tracks" changes in that rate. This means that your monthly mortgage payment could well go up or down in line with what that rate is doing at any particular time. At the end of the period the lender usually charges you its standard variable rate, although 'life time trackers' are now readily available in the market place.early repayment charges with tracker mortgages?
with most tracker rate loans there will be an early repayment charge during the tracker rate period and with some there may even be a charge after the end of this period. It is now also possible to obtain a tracker rate with no early repayment charges and people will often opt for these rather than a straight forward standard variable rate if this is what they require.
Discounted
Your Payments are variable, but they are set at less than the lender's standard variable rate for a period of time. At the end of this period, the lender will usually charge you their standard variable rate. These rates can change rapidly and there is no guarantee given to you the consumer as to whether they will go up or go down. If you want a guarantee this isnt for you but if you feel that you know the market and like a bit of a gamble, this rate will suit you.early repayment charges with discounted mortgages?
With most discounted rate loans there will be an early repayment charge during the benefit (discounted) period and some may even tie you in after this period.
Capped
This type of rate means that, like tracker and discounts, your payments are variable and often linked to the Bank of England Base rate. However, with the capped rate the lender gives a ceiling rate which means that you will not pay above this even if the variable rate would usually take you above this certain "cap". This will again revert to the lenders normal variable rate at the end of the benefit period.early repayment charges with capped mortgages?
There may or may not be an early repayment charge applicable, call us now to find out about the best capped rate available.
Collared
The lender may use this in conjunction with either capped or tracker rate mortgages, and they work in the opposite manner to the capped rate giving you a collar or floor that your rate will not be able to fall below. Both capped and collared mortgages have been fairly obsolete in recent times, at Lime we are able to give you immediate information on the different rates available and we update our systems daily to give our clients an accurate indication of what is available on the market in "real time".early repayment charges with collared mortgages?
There may or may not be an early repayment charge applicable, call us now to find out about the best collared rate mortgages available.
Standard Variable Rate ( SVR)
The standard variable rate is the base rate issued by each and every mortgage lender. When we talk about standard variable rate mortgages you will very likely be looking for a mortgage deal that gives you total flexibility, allowing you to pay off as much of your loan amount at any particular time as you wish. Generally these rates will be set higher than the Bank of England Base rate by between 2% and 2.5% at any given time.early repayment charges with standard variable rate mortgages?
Generally there will be no repayment charges with this style of mortgage rate, unless there is a large cashback.