When choosing the right type of rate you need to think of future interest rates and long term financial issues which may arise. To ensure you get the right product package it is vital to pay great attention to detail and the advice of a mortgage specialist can be invaluable.

Standard Variable Mortgage Rate (SVR)

• Lenders set the SVR which will vary depending on the economic conditions.

• The SVR does not tend to carry restrictive clauses.

• Maybe a suitable option for those whose immediate future is uncertain.

• For those who may not wish to commit to a product which includes a period of early repayment charges.

Fixed Rate Mortgage

• The interest rate remains fixed for a certain period.

• Guarantees the amount of your monthly repayment for a defined period.

• Fixed rate mortgages will protect you against possible rises in variable rates, but, if general interest rates fall below the level of the fixed rate, they could work out as a more expensive option.

Discounted Rate Mortgage

• Discount from the lender SVR for a set period.

• May attract penalties for early repayment.

Capped Rate Mortgage

• You pay a base rate tracker or discount rate with a defined upper limit in the form of the cap for a defined period

• Your interest rate is guaranteed not to rise above this level for the period the cap is in place.

• Some mortgages will have a cap and a collar, which means that your interest rate will not rise above the cap but cannot fall below the collar.

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By Amar Dhanota
Senior Mortgage Consultant
Mortgages For Professionals
T: 020 7553 3251
E: ad@mortgagesforprofessionals.com
W: www.mortgagesforprofessionals.com

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Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice, the precise amount of the fee will depend upon your circumstances but we estimate that it will be 1% of the loan amount.

Mortgages for Professionals is a trading style of Expertinfo Ltd, which is an Appointed Representative of Bond Finance Ltd.