A residential mortgage is a long-term loan on a home that will be lived in by the owner. The loan is secured by a legal charge on the property that acts as a right to possession. The loan is paid off over the specified term of the mortgage. Depending on your requirements, you can choose between a variety of different mortgage types:
A fixed-rate mortgage gives fixed monthly payments for, typically, between 2-5 years, depending on your circumstances and agreement with the lender. You will benefit if the interest rate rises, but not if it falls. This type of mortgage is often better for first-time buyers as it offers more security.
A tracker mortgage is aligned with a base rate, typically the Bank of England’s base rate, plus a pre-agreed mark-up. Your payments will rise and fall in line with this base rate. Those looking to remortgage from a fixed rate to a variable or tracker may benefit from better rates, but will have less security.
A variable rate mortgage gives an interest rate stipulated by the lender. You would normally revert to this rate at the expiry of a fixed term, tracker or discount period.
If your mortgage has reverted to a standard variable rate, there are normally lower cost solutions available.
Discounted variable rate mortgages offer a discount on a certain interest rate, most commonly a lender’s Standard Variable Rate. The discount can be for an introductory term of two, three or five years, or it could even be for the entire term of the mortgage (a lifetime discounted rate)
Your property may be repossessed if you do not keep up repayments on your mortgage.
This firm usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
At Aston & Co we have the experience and the know-how to help you find the best residential
mortgage deal to suit you and your budget. Our friendly and professional advisors are on hand to guide and support you in your choices. Contact us today to discuss your needs and pave the way to your happy-ever-after.