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The Finance Directory Blog
"A Resource for Financial products including Loans, Mortgages, Credit Cards, Pensions and Insurance with a wide range of information"
Mortgages Directory
Whilst the United
Kingdom property boom continues more and more people looking to buy
will be applying for and taking out mortgages. These
longer term loans secured on your property are vital to help the majority
of United Kingdom homebuyers finance their purchase. Whilst it is vital
for many people to take out this line of finance, the terminology and
knowledge needed can often be quite daunting. The standard person looking
to take out a mortgage will often be unaware of how the market works,
and what such terminology as ‘fixed rate’ ‘capped’ and ‘redemption’ mean.
To help, we will be providing a comprehensive range of resources to
help de-mystify. In addition to this, we will be providing a directory
of companies providing mortgages, and mortgage advisors who will also
be able to help.
Here is a range of common mortgages terminology which may be able
to help:
Variable – these type of mortgages sets their interest rate
according to the lenders standard variable rate (please see each
specific lender for details). Variable mortgages often change when
there is a change in base rate with the Bank of England.
Fixed Rate – these mortgages fix the interest rate at a specific
level for a set time period such as two five or ten years. The
advantage of these mortgages is that you always know your financial
situation
as the interest rate remains the same. However the disadvantage
is that if general interest rates fall, your mortgage will remain
at
the same rate.
Capped Rate Mortgages – with
a fixed ceiling at which interest rates cannot rise above, capped
rate mortgages protect from interest
rate rises However the disadvantage is that the capped rates will
generally be higher than fixed rates for a period of time.
Enter
our Mortgages Directory |
