Representing a whole repertoire of financial jargon, complicated choice, arrangement fees and product structures, Mortgage Loans are indeed complex products. In essence, a Mortgage is a loan secured on a property / land the client wishes to purchase, and the lender may take possession of the property if the borrower fails to repay the money. This is in the purest term, however as we know, Mortgages can come under all sorts of guises. Rates may be fixed, variable, trackers. They can be solely sterling, or multi-currency. Loans can be structured as commercial or professional, residential or buy to let, to name but a few. Then there is the question of mortgage rates, fees and the golden question ‘how much can I borrow?’
There is so much choice out there when it comes to choosing a mortgage that it can baffle the shrewdest of business men and women. Selecting the right mortgage loan involves choosing the one that will ultimately be the most suitable to meet your current needs and circumstances. This involves looking at current interest rates as well as market news and data. Arrangement fees also need to be taken into account. Borrowers need to look beyond the eye-catching rates as the very lowest rates can come with hefty arrangement fees.
Fixed rate mortgages are mortgage loans that have a fixed interest rate throughout the set term. This is typically one to five years, though it is possible to get ten year fixed rates. These are great for budgeting so that you don’t encounter any harsh surprises, however you could also be losing out on the pleasant surprises where interest rates are lower than you are paying in your fixed term.
Variable rate mortgages come in all shapes and sizes ranging from the standard variable, discounted rate and tracker rate. The interest rate that you pay on these can go up as well as down. With a tracker, the interest rates go up and down in-line with the bank of England. Slightly differently, the standard variable rates go up and down at the rate set by the individual lender, so may increase or decrease at a different rate to the bank of England base rate. Finally, the discount rate mortgage is where the interest rate is set at an established discount below the lender’s standard variable rate for a set period of time.
Off-set mortgages are also an option, with offset mortgages you can use the money in your current account to reduce the overall amount of interest on your mortgage which may reduce your monthly repayments. You don’t pay tax on your savings since they won’t be earning interest and you can still access them when you need to.
Then there are the specialist mortgages. Multi-currency, Overseas mortgages, Off-shore Mortgages, Expat Mortgages. The list goes on. Choosing between all the Mortgage Loan products on the market, is tough.
Let us do the work for you. We facilitate the residential and commercial borrowing requirements of high net worth individuals, particularly those looking to borrow more than £500,000. Our clients have so many demands on their time and they expect exceptionally high standards. Our main priority is to deliver the service that our clients need. From first- time buyers to clients wanting a million pound plus mortgage, we will find the right mortgage for you. Getting a mortgage couldn’t be any simpler!