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A mortgage is another type loan which is secured against your property.
There lots mortgage deals available so it is important that
you look around for the best deals and the lowest rates,
getting a package which is most suited to you.
Types of mortgage
Variable - the interest rate goes up and
down in line with the Bank Base Rate.
Discount - This means there is a decrease
on the variable rate for a certain period of time.
Tracker - A base rate tracker mortgage
tracks the BOE's base rate and changes in accordance, with
a constant differential, set by the company you borrow from.
Fixed rate - This means that the interest
rates are fixed for a set period.
Capped rate - Self explanatory. The interest
rate is variable but cannot go above a pre-arranged limit.
Cashback - you will get a lump sum in
cash when the deal is complete.
Flexible Mortgage - A flexible mortgage
allows you to overpay, underpay, borrow back overpayments
and take payment holidays. Interest is calculated daily
on a flexible mortgage and there are no redemption penalties.
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