Mortgages
At David Bramall Estate Agents, we offer a wide range of mortgage advice. We will help you find the most appropriate mortgage for your circumstances and at the lowest possible rate. We are also confident in finding first time buyers the best possible deal.
Types of mortgages available include:
Repayment Mortgage
This is one of the most popular forms of borrowing for a house. With a repayment mortgage, you agree to pay back a sum of money plus interest over a fixed number of years, with all the debt cleared at the end of the life of the mortgage. Unlike endowments or any stock market-related mortgage, you can be sure that at the end of the agreed repayment period all the debt will be paid.
Discount Mortgages
The interest rate you pay is discounted off the Basic Variable mortgage Rate. These lower monthly mortgage repayments in the early years of your mortgage means you have more money to spend on the more important things in life.
Fixed Rate Mortgages
The fixed rate mortgage allows you to know for a period of time exactly how much you're going to be paying each month. With a variable rate mortgage, monthly repayments usually rise and fall with interest rates, but a fixed rate mortgage provides a guaranteed interest rate for the duration of the arrangement. Normally this will be for a period of one to five years after which the repayment will revert to the variable rate.
Flexible Mortgages
Flexible mortgage can change to meet your needs. If you' have surplus income, you can overpay to save thousands of pounds in interest - and this reduces your mortgage term If you are feeling stretched, or just need a break, you can borrow money back, take payment holidays or reduce payments against your overpayment credit. Interest is calculated monthly, not annually, so you pay less interest.
Endowment Mortgages
With an endowment mortgage you only pay off the interest each month, and then make a second payment into the endowment - an investment that at the end of the life of the mortgage should have grown enough to pay off the debt. If the endowment has grown larger than the sum you ye borrowed, there could be a bonus at the end of the mortgage. But if the endowment does not grow to meet the amount you've borrowed, you could end up still owing money after 25 years of payments.
Capped Mortgages
This is a refinement of the fixed rate, which sets an upper limit on interest rates for an agreed number of years. This means that if the variable rate goes very high, borrowers with capped mortgages can be protected, knowing they wont have to pay more. The extra benefit is that if interest rates go down, people with capped mortgages can still take advantage of this and will have lower repayments.
