Mortgage

Deciding to move home usually means lots of planning and preparation. Looking for the perfect mortgage can be as tricky as chosing the perfect house. However when using HomesOnSale deciding to get a mortgage has never been easier. From one form you can compare over 7000 mortgages, and in some cases apply direct. You will see the best offers available to UK residents.

There are two main types of mortgage. These are repayment mortgages and interest- only mortgages . The savings made can differ substantially between the different types of mortgages and between the different lenders.

• Fixed
• First time buyers
• Discounted
• Buy To Let
• Capped
• Adverse Credit
• Mortgage Advice

Fixed (no tie-in beyond benefit period) LenderName Rate Duration BaseRate MaxLTV TieIn Apply Alliance & Leicester 3.49% To Apr 2011 4.99% 75% No Overhang Flexible LenderName Rate Duration BaseRate MaxLTV TieIn Apply First Time Buyers LenderName Rate Duration BaseRate MaxLTV TieIn Apply Direct Line 6.89% To Mar 2011 2.5% 90% No Overhang Light Adverse Payment History LenderName Rate Duration BaseRate MaxLTV TieIn Apply Offset (new) LenderName Rate Duration BaseRate MaxLTV TieIn Apply Market Harborough B Soc. (Direct) 4.44% Term 5.49% 75% No Redemption Yorkshire BS (Direct) 4.79% To Apr 2014 4.99% 75% No Overhang Variable LenderName Rate Duration BaseRate MaxLTV TieIn Apply HSBC Bank Purchase Direct 2.45% Term 3.94% 60% No Redemption First Direct 3.09% Term 3.69% 80% No Redemption Hanley Economic BS Direct 3.39% 2 Years 4.99% 80% No Overhang The Co-operative Bank (Direct) 3.64% To Mar 2012 4.24% 75% No Overhang

About fixed rate mortages

With a fixed rate mortgage the amount you repay the lender each month can be at a fixed interest rate for a specified period of time, regardless of changes to interest rate in the market place. It is common for lenders to offer rates fixed for a period of 2 to 5 years, but shorter and longer periods can be found in the market. At the end of the fixed rate (or ‘benefit’) period the rate will normally convert to the lenders Standard Variable Rate (SVR).

It is normal for lenders to charge up-front fees in the form of booking and/or arrangement fees. In addition lenders frequently apply an Early Repayment Charge (ERC) for fixed rate mortgages. This acts as a ‘lock-in’ making an often heavy charge for borrowers paying off their mortgage early. Watch out, as the ERC can sometimes last longer than the fixed rate period e.g. a 3 year fixed rate with a 5 year ERC.

Discount (with tie-in beyond the benefit period) LenderName Rate Duration BaseRate MaxLTV TieIn Apply Discount (no tie-in beyond benefit period) LenderName Rate Duration BaseRate MaxLTV TieIn Apply Market Harborough B Soc. (Direct) 3.99% Term 5.49% 75% No Overhang The Co-operative Bank (Direct) 3.64% To Mar 2012 4.24% 75% No Overhang First Time Buyers LenderName Rate Duration BaseRate MaxLTV TieIn Apply Direct Line 6.89% To Mar 2011 2.5% 90% No Overhang

Discount (with tie-in beyond the benefit period) LenderName Rate Duration BaseRate MaxLTV TieIn Apply Discount (no tie-in beyond benefit period) LenderName Rate Duration BaseRate MaxLTV TieIn Apply Market Harborough B Soc. (Direct) 3.99% Term 5.49% 75% No Overhang The Co-operative Bank (Direct) 3.64% To Mar 2012 4.24% 75% No Overhang

About Discounted Mortgages
The Lender offers a discount on the Standard Variable Rate (SVR) for a specific period of time. For example, the variable rate may be 5% with a discount of 1.5%. The initial pay rate would therefore be 3.5%. If the variable rate rose to say, 6%, then the rate payable would rise to 4.5%. As the discount is linked to the standard variable rate, the borrower’s payments will increase, if rates rise - so there is no certainty in budgeting. However, should rates decrease, the borrower will benefit from lower payments.

It is still possible to have up-front charges for discounted products and an Early Repayment Charge is common.

With discount mortgages borrowers need to watch out for ‘payment shock’. Some short term discount products offer a ‘deep discount’ e.g. 4% off for 1 year. In such circumstances the borrower will be facing a significant increase in their monthly mortgage payment at the end of the discount benefit period.

Buy To Let Mortgages LenderName Rate Duration BaseRate MaxLTV TieIn Apply

Fixed (no tie-in beyond benefit period) LenderName Rate Duration BaseRate MaxLTV TieIn Apply Alliance & Leicester 3.49% To Apr 2011 4.99% 75% No Overhang Fixed (with tie-in beyond the benefit period) LenderName Rate Duration BaseRate MaxLTV TieIn Apply Capped LenderName Rate Duration BaseRate MaxLTV TieIn Apply

Light Adverse Payment History LenderName Rate Duration BaseRate MaxLTV TieIn Apply Medium Adverse Payment History LenderName Rate Duration BaseRate MaxLTV TieIn Apply Heavy Adverse Payment History LenderName Rate Duration BaseRate MaxLTV TieIn Apply

With over 8,500 mortgages available you can save thousands of £££’s by finding the cheapest mortgage suited to your needs. Let our UK-based skilled and regulated financial team help you.

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Repayment Mortgage: The payments made to the lender every month pays off both the capital and the interest from the mortgage. Regular payment guarantees to pay off for the loan by the end of the term agreed (usually between 20 and 30 years). You usually pay off more interest at the start of the mortgage term and then gradually more of the capital debt. Therefore, in later years, you will be repaying increasing amounts of capital and reducing amounts of interest. It looks a bit costly as compared to the other types of mortgages because the monthly installment pays off the capital and not just the interest. Most lenders also offer Flexible mortgages and 100% mortgages .

Flexible Mortgage: A flexible mortgage has the facility for both over-payments and under-payments built into the mortgage. This enables in overpaying mortgage when finances allow, and then, provided that overpayments is made in the past, underpayment can be done when finances are tight. Flexible Mortgage helps in paying off mortgage early and save a lot of money in interest. Interest is calculated regularly so as the capital owed to the lender gradually decreases, interest payments also decrease.

100% Mortgage: The 100 % mortgage option enables to buy the property outright. This usually means a higher interest rate. With a 100% mortgage you are more likely to get tied into the property, which is bad unless house prices rise rather than fall. Fall in house prices gets negative equity, which means the mortgage will be of larger value than the sale value of the property. 100% mortgage may likely require payment of mortgage indemnity guarantee, though most lenders allow it to be added to mortgage to improve cash flow. On the positive side a 100% mortgage is the best option if a deposit on property is not affordable. A quote to select the best available option is free and there is no obligation to finish the deal.

Interest-Only Mortgages: An interest-only mortgage is where the lender only charges interest on the mortgage agreed. The capital is not paid back until the end of the mortgage term (whatever period agreed). The idea of this mortgage is to pay the interest owed to the lender and save the capital repayments by investing them elsewhere. At the end of the mortgage term you make enough money from investments to pay the lump capital sum. This way helps in possible saving by investing capital that would otherwise be paid straight back to the mortgage lender.

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