FIXED RATE MORTGAGE
With a fixed rate mortgage, the interest rate is fixed for a given period, normally
between two to five years. That means you know exactly what your monthly payments
are during the fixed period. If you move to another rate before the end of the fix
you will normally face Early Repayment Charges.
Fixed rates can be extremely competitive, particularly in a low rate environment. However, you always face the risk that rates could fall further, leaving you on an uncompetitive rate .
VARIABLE RATE MORTGAGE
A variable-rate agreement, as distinguished from a fixed-rate agreement, calls for an interest rate that will fluctuate over the life of the loan. The rate is often tied to an index that reflects changes in market rates of interest. A fluctuation in the rate causes changes in the payments. No limits are placed on the degree to which the interest rate or the payments can vary.
Because of the huge choice of mortgages available on the market today lenders have been forced to become more competitive.
This means that one of the best ways to raise cash and save hundreds.
DISCOUNT RATE MORTGAGE
A discount rate mortgage offers a percentage discount from the lender's normal variable rate for a set period of time.
When the standard variable rate fluctuates, the discount will remain fixed, and the rate you pay will fluctuate.
I if variable rate is 6% and discount is 1%, then the pay rate will be 5%. The 1% discount will be fixed for the agreed period.
FIRST TIME BUYER MORTGAGE
CAPPED RATE MORTGAGE
Capped rate mortgages uses the facilities of both variable and fixed rate deals.
Over a period of time a limit is set- a cap - on the maximum amount of interest you will pay over a particular period while allowing it to fall if the variable rate drops.
For More Information , Please contact Mortgage Advisor