Mortgages
Purchasing a house is possibly one of the largest investments you will ever make.
It is very important to get the correct advice in order to make an informed decision
on products available to you. There is some useful information below however if
you need any help or advice on sourcing a mortgage please contact us.
Borrowing Limits
The amount an individual can borrow for a mortgage varies between mortgage providers.
By and large the amount you are able to borrow depends on your annual income, your
current employment status, other financial commitments (i.e. other loans or other
mortgages) and the how large your deposit is.
Your deposit on a property can significantly lower your monthly mortgage payments.
Choosing the right Mortgage for you
There are many of different options, some of them include:
Fixed Rate – Where you pay a fixed rate of interest for a set period of time. This
will help you to foresee exactly what you will be paying each month. When the fixed
rate period ends, your rate will move to the lender’s standard variable rate.
Variable Rate – Where your mortgage payments go up or down with the lender’s interest
rate.
Discount Rate – Where you pay a lower interest rate to begin with, then you move
to another rate after a set period of time.
Capped Rate – Where you pay a variable interest rate, but there is a threshold so
your payments will not go above a prescribed amount for a set period of time.
Variable Rate with Cashback – You received a cash lump sum as well as the loan when
you take out the mortgage. Usually you will be tied into the variable rate for a
set period.
Paying your mortgage
There are two standard ways in which to pay your mortgage:
Repayment Mortgage – With this system you make month repayments for an agreed period
until you’ve paid back the loan and interest accrued in its entirety.
Interest only Mortgage – This system allows you to make monthly repayments for an
agreed period but this will only cover the interest on the loan.
Important Note
Your home could be repossessed if you do not keep up with your repayments on your
mortgage.
Please note, this is a just handy guide and does not constitute financial advice.