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Mortgage:
Click on the links below to find information about the following types of mortgages:
Hartsbourne Financial Services offers a fee and a fee only option. A fee of estimated £250.00 may be payable at the outset. We will be paid by commission from the lender. Or you could choose a fee only option where you will pay a fee of estimated £999.00 and we will pass on any commission paid by the lender to you.
Fixed:
This is a very popular option for those who like to have peace of mind of knowing their repayments will stay the same throughout the agreed term.
Our advisors can help you make the decision by finding the right fixed rate mortgage by searching the Whole Market.
Some advantages and disadvantages of a fixed rate Mortgage...
- This is one of the most popular types of mortgage with first time buyers, as it offers stability and allows you to control your budget more effectively
- It makes a favourite choice for young families and single homeowners who don't want to take the risk of a large rise in interest rates - which would mean an increase in monthly repayment amounts
- If you expect there to be changes in your financial circumstances in the near future, a fixed rate is usually the best option
- However - if interest rates fall, you won't see the benefit
- When your fixed term ends, your payments may rise as you switch to the normal variable rate
Trackers
Tracker mortgages follow the Bank of England's base interest rate, rising and falling in line with rate changes. Usually, your rate is set at an agreed percentage above the base rate (for example 0.75% above) for a set period or this can be for the life of the loan.
Some advantages and disadvantages of a tracker rate Mortgage...
- If the Bank of England base rate falls, then your interest payments are reduced
- However, if the base rate rises, then so do your monthly payments
- People who prefer to know exactly how much they will pay each month will probably prefer a fixed rate mortgage
- As with any variable loan or mortgage it is important to remember that payments can go up as well as down
Discounts
Discounted mortgages work in a similar way to tracker mortgages. Both are variable rates, meaning that the rate can change during your mortgage term.
However, unlike a tracker, a discounted mortgage doesn't follow the base rate. Instead, discounted mortgages offer a reduction in the lender's SVR (standard variable rate) for an agreed period of time.
Some advantages and disadvantages of a Discount rate Mortgage...
- Discounted mortgages are good deals for people who are able to manage any fluctuations in their monthly repayments.
- If interest rates fall, you may benefit from lower payments
- They are some of the cheaper available mortgages, but they are tied to a risk of increased interest rates
- People who prefer to know exactly how much they will pay each month will probably prefer a fixed rate mortgage
- As with any variable rate loan or mortgage it is important to remember that payments can go up as well as down
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