Types of Mortgages
Your existing mortgage
Because we realise how important flexible finances are for you, we offer a variety of mortgages for both our Residential and Buy to Let products. You may already have one of the following mortgages with us:
If you would like to change the type of mortgage you have, we would recommend that you speak to your mortgage adviser first.
Whilst we can provide you with information about our mortgages, we can’t advise you or recommend which mortgage may be suitable. For advice, please talk to a mortgage adviser authorised by the Financial Services Authority.
Fixed mortgages
The interest you pay on your mortgage loan is charged at a fixed rate for an agreed period that could be two, three or five years.. This means you’ll know exactly what your outgoings will be during the fixed- rate period and you can budget around that.
It’s important to remember that interest rates may go up or down. If they go up, you have the peace of mind that your payments will still stay the same – but if they go down, you could find that you continue to pay a higher rate for your loan.
If your mortgage has Flexible Features, you may be able to reduce the interest charged by making overpayments. You may be able to drawdown this money again, if required, or even take payment holidays. If you fully repay your mortgage, make lump sum repayments off your mortgage balance, or transfer your mortgage to another mortgage type earlier than expected, an early repayment charge may apply.
If your mortgage does not have Flexible Features and you make a lump sum repayment, or transfer it to another mortgage earlier than expected, an early repayment charge may apply.
Tracker mortgages
A Tracker mortgage is taken out for a set period of time and the interest rate you pay simply tracks (follows) the Bank of England base rate. Rates can still go up and down, but will always be closely in line with the base rate, so you’ll know how your mortgage payments may change.
If your mortgage has Flexible Features, you may be able to reduce the interest charged by making overpayments. You may be able to drawdown this money again, if required, or even take payment holidays. If you fully repay your mortgage, make lump sum repayments off your mortgage balance, or transfer your mortgage to another mortgage type earlier than expected, an early repayment charge may apply.
If your mortgage does not have Flexible Features and you make a lump sum repayment or transfer it to another mortgage earlier than expected, an early repayment charge may apply.
Variable rate mortgages
Once a Fixed or Tracker rate period comes to an end, the rate of interest you pay on your loan usually changes to the lender’s standard variable rate for that product.
The interest rate you pay on a variable rate mortgage will go up and down over the lifetime of your mortgage – roughly in line with interest rates in the economy. Having a variable rate means paying a fair market price for the money you borrow – and you won’t be tied into early repayment terms and conditions.
Whichever type of mortgage you've chosen or are thinking of changing to, our policy of openness and honesty means that any relevant conditions will always be clearly highlighted when you set up your loan.
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