Mortgage advice Liverpool

Types of mortgages 

At ALT Financial Solutions Liverpool we will provide you with mortgage advice you understand . We won’t use jargon just plain English. Mortgage advice can be provided by visiting you at home or by appointment at our office in Liverpool , whatever is more convenient for you. We also cover Sefton, Southport, Knowsley areas and also over cover the North West region. We can also provide telephone appointments if that works better for you.

Below there is list of the different types of mortgages that may be available.

Variable rate mortgage 

Your monthly payment fluctuates in line with our standard variable rate (SVR) of interest set by the lender. You probably won’t get penalised if you decide to change lenders and you may be able to repay additional amounts without penalty too. Many lenders won’t offer their standard variable rate to first time buyers.

Tracker rate

Your monthly payment fluctuates in line with a rate thats equal to, higher or lower than a chosen base rate (usually the Bank of England base rate). The rate charged on the mortgage ‘tracks’ that rate, usually for a set period of two to three years. You may have to pay a penalty to leave your lender especially during the tracker period.  You may also have  to pay an early repayment charge if you pay back extra amounts during the tracker period. A tracker may suit you if you can afford to pay more if interest rates go up and you will benefit when they go down. It’s not a good choice if your budget won’t stretch to higher monthly payments or if you prefer to know exactly how much you will need to pay each month.

Fixed rate

With a fixed rate mortgage the rate stays the same, so your payments are set at a certain level for an agreed period. At the end of that period the lender will usually switch you to its SVR (see variable rate). You may have to pay a penalty to leave your lender especially during the fixed-rate period. You may also have to pay an early repayment charge if you pay back extra amounts during the fixed rate period. A fixed rate mortgage makes budgeting much easier because your payments will stay the same even if interest rates go up. However it also means you won’t benefit if rates go down.

Discounted rate

Like a variable rate mortgage, your monthly payments can go up or down. However you’ll get a discount off the lenders standard variable rate for a set period of time after which you will usually switch to the full standard variable rate. You may have to pay a penalty for overpayments and early repayment and the lender may choose not to reduce ( or delay reducing) variable rate even if the base rate goes down. Discounted rate mortgages can give you a gentler start to your mortgage at a time when money maybe tight. However you must be confident you can afford the payments when the discount ends and the rate increases.

Flexible mortgages

These schemes allow you to overpay, underpay or even take a payment ‘holiday’. Any unpaid interest will be added to your outstanding mortgage any overpayment you make will reduce it. Some have the facility to draw down additional funds to a pre-agreed limit.

Offset mortgages

Taking out an offset mortgage enables you to use your savings to reduce your mortgage balance and the interest you pay on it. For example, if you borrowed £200,000 but had £50,000 in savings you will only be paying interest on £150 ,000. Offset mortgages are generally more expensive than standard deals . Although they can reduce your monthly payments at the same time still giving you access to your savings.

Government backed schemes

Over recent years that government has backed a number of schemes such as ‘Help to Buy  ‘to support homebuyers. We can explain the details of the schemes and whether you can benefit from them.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

ALT Financial Solutions undertake credit broking and are not lenders.

Mortgage advice guide