Frequently Asked Questions
If you have a question, and need an answer, please do not hesitate to contact us. Prior to doing so however, it may be worth reading through some typical examples of questions and answers below, as your query may have already been discussed.
What is a mortgage?
A mortgage is a loan secured against the value of a property which enables you to buy a home or carry out home improvements. It can also be used to help you finances in other departments, such as debt consolidation.
What is a repayment mortgage?
The customer makes payments of capital and interest over an alloted time period. If all repayments are paid on time, the mortgage will complete within that time period.
What is an interest only mortgage?
With an interest only mortgage, the customer makes repayments of interest over an alloted time. Once the time period is complete, they must pay off the capital in one lump sum.
What type of interest rate products are there?
Mortgage lenders often offer multiple means of paying interest. The standard types of interest rate products are the Variable Rate, Base Rate Tracker, Fixed Rate, Capped Rate and Discounted Rate.
What is a Variable Rate mortgage?
Mortgage payments alter in conjunction with the base rate set by the Bank of England. The actual variable rates of interest change from lender to lender, as they set their own standard rates.
What is a Base Rate Tracker mortgage?
The interest rate follows the base rate set by the Bank of England directly.
What is a Fixed Rate mortgage?
The interest rate of your mortgage remains constant over a set period of time regardless of the rate set by the Bank of England.
What is a Capped Rate mortgage?
The interest rate of your mortgage is able to incease or decrease following the base rate up until a point, but after this point, even if the base rate increases, the interest rate of your mortgage does not - it is capped.
What is a Discounted Rate mortgage?
The lender sets a variable rate for you to pay for a period (usually less than their standard variable rate) of time, and then after this period, you can usually expect to pay the lender's standard variable rate.
What is a flexible mortgage?
Such mortgages are set up in order to allow for extra payments to be made when you wish, or, should you require, they often allow for a break from payment.
Will it be difficult for me to find a mortgage with past financial trouble?
There are now many lenders with the ability to offer mortgages to those who have previously suffered from financial problems such as mortgage arrears, County Court Judgements (CCJ's) or adverse credit. Even if you are still hindered by such problems, we may be able to help.
Can I use the money I raise from my mortgage for anything?
Yes. You can buy property, buy a car, carry out home improvements, treat yourself to a holiday or clear existing debt.
Should I take out an insurance policy against my mortgage?
There are insurance policies which cover your mortgage payments should you become ill, have an accident, become unemployed or die.