Leeds Building Society 3 year stepped
Yorkshire Building Society 2 year discount
Repayment mortgage of £160,000 with 300 monthly repayments. At end of initial period mortgage reverts to Standard Variable Rate (currently 4.74%, costing £884.21 p/m) for 276 months. Total amount payable £260,260: Interest (£98,288); Application fee (£1,495); Valuation fee (£270); Legal fee (£117); Mortgage discharge fee (£90); Fees are assumed to be paid up front and not included in the amount borrowed. Costs based on assumed completion date of 28/02/2018.
HSBC 2 year tracker
Tracker rate: This means that the initial interest rate you pay is variable and is an agreed percentage above the Bank of England's Base rate. As the base rate rises and falls, your interest rate will track these changes, and this will affect your monthly payments accordingly. You can apply for this mortgage: If you are an existing HSBC Customer or not.
Barclays 2 year tracker
A capital and interest mortgage of £161,000 payable over 25 years on their variable tracker rate of 1.29% above the Barclays Bank Base Rate (currently 0.25%) for 2 years, and then a variable tracker rate of 3.49% above the Barclays Bank Base Rate for the remaining term would require 24 monthly payments of £646.93 and 276 monthly payments of £812.62. The total amount payable would be £240,923.44 made up of the loan amount plus interest and £999 (product fee), £80 (final repayment charge), £35 (completion fee).
What type of mortgage is right for me?
Choosing a mortgage is one of the most important financial decisions you will make in your life. Selecting the right one will depend on several factors including the length of the mortgage, loan type, and interest rate.
Having a good understanding of the various types of mortgage will help you find the best option for you. It is important to carefully consider all of the options to see which type of mortgage meets your financial capabilities.
One of the first decisions to make is whether to go for a repayment mortgage or an interest-only mortgage. The vast majority of people choose repayment mortgages as lenders usually need a large deposit to take out an interest-only mortgage.
The next thing to consider is the monthly rate you’ll be paying. This can either be a fixed rate mortgage or a variable rate mortgage. The benefit of a fixed rate mortgage is that you’ll have the security of knowing exactly what you’ll be paying each month. As for variable rate mortgages, these can be either a tracker or discount rate mortgage. Some variable-rate mortgages have a rate at which they can’t fall below or go above to give borrowers further peace of mind.
The mortgage you choose today will affect your financial position for years to come. It’s important to put careful consideration and research into making the right selection.
FAQs about mortgages
What is a mortgage?
A mortgage is a loan from a bank or building society to help buy a property. Over a certain term, you’ll pay back the loan, plus interest.
How much of a deposit will I have to pay?
All lenders will require you to pay for part of the property yourself, known as the deposit. The amount you’re required to pay will be a percentage of the property’s value.
What is an interest only mortgage?
With an interest-only mortgage, your monthly repayments will only cover the interest owed. This means you’ll have to save up to pay the loan in full at the end of the term. Most lenders will only let you choose this option if you pay a significant deposit.
What is a repayment mortgage?
A repayment mortgage is the most common option. You’ll pay both the interest and loan off each month so that you’ll be fully paid up by the end of the term.
How do joint mortgages work?
You can buy a property with another person and decide between you how to share the equity of the property.
What are the benefits of a fixed rate mortgage?
The benefit of a fixed rate mortgage is that you’ll have the security of knowing exactly what you’ll be paying each month.
What are the benefits of a variable rate mortgage?
With a variable rate mortgage, the interest rate can change at any time.
The two main types of variable rate mortgages are: Standard variable rate (SVR) This is the normal interest rate lender charges. The rate may change depending on in the base rate set by the Bank of England. Discount mortgages This is when you get a discount off the lender’s standard variable rate (SVR). It typically only applies over a certain length of time, and as it stars off cheaper, your monthly repayments will be lower. The discount rate is likely to rise if the if the Bank of England base rates rise. Tracker mortgages This type of mortgage tends to move directly in line with the Bank of England’s base rate. So if the base rate increases, your monthly interest rate payment will go up by the same amount.
What happens if I fail to pay my mortgage off?
If you are unable to pay back the mortgage, the lender could repossess your house.