Choosing the right mortgage option is necessary to ensure a steady financial position. Apart from primarily investing a substantial amount of your time in selecting the right property, you should always research the potential mortgage schemes before making the final call. With the help of an experienced mortgage advisor in Market Deeping, things can get a lot easier for you.
What should you consider before choosing a mortgage?
Some of the key questions to consider while looking for the best mortgage option are:
- Are you comfortable paying the interest off monthly, or do you want a repayment mortgage?
- Are you comfortable with variable interest or want to lock the interest at a fixed rate?
- What should be the ideal lifespan of your mortgage loan?
- What should be the preferable loan-to-value ratio?
- What should be the duration of the introductory deal offered by the lender?
- A clear answer to all these queries will help you find the most appropriate mortgage deal specific to your requirements.
What are the different types of mortgage options?
The most common mortgage options in the UK are discussed below.
1. Fixed-rate mortgages
In the case of a fixed-rate mortgage, you need to pay a predefined interest rate for a specific number of years. It allows the individual to have a predictable monthly payment at a fixed rate, even at a time when the interest rate is on an increasing trend.
2. Standard variable rate
It is mainly the default rate of your lender and an expensive borrowing option. Individuals mostly opt for this type of mortgage when the fixed or variable mortgage has been over or is about to go over unless they’re considering re-mortgage on any other deal. One benefit you can avail of this option is you can remain free to leave at any point without paying any exit fees.
3. Discounted mortgages
Discounted mortgages are a variable-rate type, mainly a cut-price version of the standard variable rate of the lender. And the discount is applied at a specific percentage for a certain time frame, mostly 2-3 years.
4. The bottom line
Choosing the right mortgage option is never an easy task, so you should always consult a qualified mortgage advisor who can help you evaluate the different options available. David List Mortgage Consultants Ltd is the name you should always rely upon for comprehensive guidance on choosing the most suitable mortgage for your property deal. Consult our experts now.