Mortgages

You'll find plenty of interesting information about mortgages here, and you can use the following calculators to assist in your mortgage research

• Mortgage Calculator

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Mortgages tailored to your needs

Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. Surely then you should seek mortgage advice which is totally independent and individually tailored to your needs and requirements?

We are not tied to any particular lender, which means that we have the ability to act on your behalf, representing your best interests, in order to establish the most appropriate mortgage solution for you.

Gone are the days when a borrower was grateful to the lender for providing them with a mortgage facility. In today's marketplace, lenders are in competition with each other for your valuable business. They are therefore willing to offer incentives to entice you. But beware, you don't want them to snare you!

There are so many types of mortgage available that it is easy to become confused, possibly opting for the product offering the lowest headline rate of interest. But when booking and arrangement fees, conditional insurances, mortgage indemnity guarantee premiums, lock-ins and early redemption penalties are taken into account, the products, may not be as attractive as one was first lead to believe.

Based on the information you provide in your Mortgage Information Form (it is essential that you provide truthful and up to date information), we will search the UK mortgage market of over 300 lenders, some of which offer exclusive products to brokers such as ourselves, to determine which lender will offer you the most attractive mortgage options, suited to your particular requirements.

One of our mortgage experts will then contact you to discuss your enquiry, source the products on your behalf, answer any queries you may have and provide you with any further information you may require.

Ways to repay your mortgage

There are various ways in which you can repay your mortgage. Here is a brief outline of the more popular repayment methods, and their advantages and disadvantages.

Repayment mortgage

How does it work?

You borrow a lump sum over a fixed period of time (usually 25 years but can be shorter). You pay the interest and some of the capital on a monthly basis to the lender.

ADVANTAGES: Some flexibility with repayments. The only way you can be 100% certain the loan will be repaid.

DISADVANTAGES: Can be slightly more expensive than endowment mortgages. Only a small amount of capital is paid off in the early years.

Interest only mortgage

How does it work?

Your monthly payments represent only the interest due to the lender, and do not include repayment of capital. Your total loan must be repaid at the end of the mortgage term. You therefore need to arrange additional investments which will generate sufficient capital to repay the loan.

ADVANTAGES: You can choose from a variety of investments, some of which have tax advantages. Should you move or arrange a remortgage, your investment can usually be reallocated to the new mortgage.

DISADVANTAGES: Unlike a repayment mortgage, the amount of debt outstanding does not reduce over time, and as with many additional investments you could choose from, there is no guarantee that those chosen will grow sufficiently to repay your loan.

Endowment mortgage

How does it work?

You make two payments per month. One to the lender to repay the interest on the amount borrowed, the other to an insurance company for an endowment contract. There are mainly two types of endowment: unit linked or with profits. Both invest in a broad range of assets including stocks and shares. The capital in the endowment builds up over the term of the mortgage to repay the outstanding capital.

ADVANTAGES: This one's very flexible. You can take the endowment policy with you if you move home or change mortgage lender. Endowments usually include some kind of life cover and some also include critical illness cover. This can be a cheaper method of buying such cover under usual conditions. If the endowment contract performs well, you may accumulate more funds than required to repay the loan. However, endowments are not totally risk free as there is some investment in the stock market, but the spread of investments is wider which should, in theory, reduce the risk.

DISADVANTAGES: There is a possibility your fund may not have built up sufficiently to repay the capital. Keeping a watchful eye on your fund's performance will help to prevent this happening.

Pension mortgage

How does it work?

You make two payments per month. One to the lender to repay the interest on your borrowings and another into a personal pension plan. The plan is to build up your pension fund sufficiently to repay the loan and provide you with a retirement income.

ADVANTAGES: Has tax advantages as the contributions you make to the pension attract tax relief at the highest rate of tax you pay.

DISADVANTAGES: You must ensure your pension is well funded to ensure you have sufficient to repay your loan and provide for your retirement. The lump sum is paid on retirement which may mean you are paying interest on the loan for longer than 25 years.

Your home may be repossessed if you do not keep up repayments on your mortgage.