Home Loan Repayment Calculator

Home Loan Options

Whether you are purchasing a property for the first time, re-mortgaging an existing property or have a buy to let portfolio all of our Advisers have expertise in each of these sectors to assist you and add value. We will explain the various types of mortgage options available such as fixed, variable, tracker, offset etc and provide advice on the most appropriate way of repaying your mortgage to fit in with your current and future circumstances.

Selecting a mortgage can be a difficult and time consuming exercise as lenders often use jargon, describe mortgages by different names, have varying interest rates, small print terms and up front charges many of which currently change almost on a daily basis. For these reasons we believe you should always use a specialist broker who has the current market information to hand and can guide you through this maze.

There are many different types of UK mortgage options available, each with their own pro’s and con’s, and the list on the left is designed to provide a brief synopsis of the most popular mortgage products currently available.

Buy to Let Mortgages.

A Buy to Let mortgage is designed for purchasing a property with the sole intention of letting it out in return for an income.

The amount advanced is dependent on the projected rental income of the property and the available deposit rather than the ability to cover the payments from regular income.

This is ideal for investment property and for those people who have property portfolios.

Fixed Rate Mortgage

A fixed rate mortgage secures the interest rate for a specific period of time, meaning that monthly repayments remain the same until the fixed rate expires.

The period of the fixed rate varies from lender to lender but typically range from 2 years to 10 years.

This type of mortgage means it is easier to plan ahead as you will know exactly what your monthly payments will be without the concern of future mortgage fluctuations.

Discounted Rate Mortgage

A Discounted rate mortgage can apply to all types of borrowers, not just first time buyers as is often thought to be the case.

In simple terms the lender offers a reduced rate of interest from their standard variable rate for a set period of time, typically 2 to 5 years.

This type of mortgage is linked to standard variable rates and therefore subject to fluctuations.

Repayment Mortgage

A traditional and straightforward repayment mortgage is the safest way to ensure that your mortgage is repaid at the end of the agreed term.

Your monthly repayments will partly go towards the repayment of the capital borrowed with the remainder covering the interest due.

If all repayments are met to their full extent and on time then the mortgage is guaranteed to be repaid by the end of the agreed term.

Interest Only Mortgage

Interest only mortgages mean that you only cover the monthly interest payments on your loan while the actual mortgage balance remains outstanding.

At the end of the mortgage term, typically 25 years, the total amount of the loan is repayable therefore in addition to covering the monthly interest payments you should make a contribution to some form of investment or savings scheme which is designed to repay the principle portion of the mortgage.

Navigation ×

Abbey Home Loans

Home Loan Options