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There are three main types of mortgages. These are 'repayment mortgage', 'interest only mortgage' and 'part & part'.
Repayment Mortgage (also known as Capital & Interest)
It may be important to consider a separate life assurance policy designed to pay off your mortgage should you or a partner die.
Interest Only Mortgage
It may be important to consider a separate life assurance policy designed to pay off your mortgage should you or a partner die. Depending on your circumstances, a level term may be something to consider for an interest only mortgage, as the cover remains the same throughout the term of the mortgage.
Part and Part
Some lenders may do a part and part mortgage whereby you can opt to have a set amount on a repayment basis and the rest on interest only.
Makes it easier to plan your finances as payments are fixed for a certain period of time that suits you. Gives you security, as you won’t need to worry if interest rates go up, as it will not affect your monthly payments.
The lender allows you a discount of a certain percentage off their standard variable rate for a set period of time. The level of discount offered may vary depending on the percentage the mortgage represents to the value of your property. If the standard variable rate changes, so too will your monthly payments, but the percentage discount is usually guaranteed for the set period of time.
This product tracks the Bank of England base rate. Your monthly payment will be affected if there are any changes to this rate. Typically, the lender will have a rate, which is a certain percentage above the Bank of England base rate. This is usually guaranteed for a given period of time.
The lender puts an upper limit on your rate. This means that while you can benefit from a lower monthly payment when rates are low, you have also got the added security that your payments will not go over a certain amount should the interest rates keep going up.
Will allow you to make overpayments, underpayments and take payment breaks.
A lump sum cashback, may be given by the lender upon completion of the mortgage. If the mortgage is redeemed early however, you may have to pay back some or all of the cashback received - this is known as an early repayment charge.
YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
There will be a fee payable upon application of a mortgage of £250
Dolphin Independent (Mortgage Advice) Limited is an appointed representative of Personal Touch Financial Services Limited which is authorised and regulated by the Financial Conduct Authority. We are entered on the FCA Register No 511232 at www.fca.org.uk/register.
Registered Office Address: 462 Wokingham Road, Earley, Reading, Berkshire, RG6 7HY. Registered in England & Wales. Company Registration Number: 09510821