- What different types of mortgages are there?
There are a number of different mortgages available to help you with your specific financial needs and requirement. Mortgage types include: Repayment, in which repayments made each month pay off the interest and part of the capital borrowed month on month; Interest only, in which repayments only cover the interest on your mortgage and you are responsible for the capital when the mortgage reaches the end of its term; Discount Variable, which is cheaper than a Standard Variable Rate at the start of the mortgage, and allows borrowers to take advantage of the discount for a set period of time.
You can also acquire a Fixed Rate mortgage in which your interest rate is fixed throughout the repayment period, or a Tracker mortgage in which the interest rate is set by the Bank of England base rate. Nicholas Estates are available to discuss your mortgage options.
- What fees are involved in getting a mortgage?
There are a number of fees involved in acquiring a mortgage including a valuation fee, a buildings survey, a higher lending charge and legal fees and outlay costs. Nicholas Estates will be able to provide quotes for all of the fees involved.
- Do I need any insurances with my mortgage?
Because it is such a huge financial commitment, there are a number of insurances relating to your mortgage, such as: life cover, critical illness cover, lifestyle cover, buildings insurance and contents insurance.
- Is a fixed mortgage right for me?
This depends upon your personal circumstances. Interest rates regularly rise and fall, meaning that on a fixed rate, you will miss more favourable interest rates, but also higher rates that could be troublesome to pay back. Nicholas Estates are able to advise you on the best direction for your specific needs.
- Can I pay off my mortgage early?
Yes, it is possible to do this, but you may incur early repayment charges if you?ve only had your current mortgage products for a short time.
- What do I do if my repayment plans won?t cover my mortgage?
If you?re repayment plans do not cover your mortgage, then it is important to consider your plan and the affordability of the property in question.