How do I choose a mortgage?

There are so many different types of mortgage and different options - it's very difficult to decide which one is best for you. That’s why we’ve teamed up with a number of hand picked mortgage brokers. They’ll give you all the advice you’ll ever need.

But to start with, it will help you to do a little research of your own so that you get acquainted yourself with all the different options available to you.

In very basic form, here is a description of the first choices you will have to make. You’ll also find lots more detail by reading some of our other FAQ’s.

The first choice is - do you want an Interest Only or a Repayment Mortgage.

Repayment Mortgage - you pay the loan and interest back through your monthly repayment over the duration of the mortgage.

Interest Only Mortgage - you pay the interest back over the duration of the mortgage term, and set up another savings vehicle to raise the funds to pay back the capital at the end of the mortgage term.
Types of interest rate

Fixed interest - you can protect yourself from fluctuations in the Bank of England base rate of interest by choosing fixed rate. The disadvantage is that if interest rates decrease you won't be able to enjoy lower monthly payments

Variable interest - good if the interest rates go down or stay the same, not so good if they start rising on a regular basis.

Choosing what type of interest rate to go for is one of the most important choices you will face. We recommend that you seek independent financial advice before making your ultimate decision.

More FAQ's: