Mortgage facilities are available to suit almost everyone whatever their circumstances. We are not tied to just one lender and can search the market for the very deals available.

Buying your own home is probably one of the most important steps you will take towards the future.

As your local independent estate agent, we are here to make it as easy and as stress free as possible.

We will provide you with all the help and guidance you need to see you through the whole process.

The following is designed to help explain briefly some of the mortgage types available to you as a house buyer.

Being local, we have extensive area and property knowledge and are dedicated to helping you find what you are looking for.

• Capital Repayment Mortgage.
  A Capital Repayment Mortgage is the 'no-frills' way to buy a house.
  The borrower pays off some of the capital and all of the interest due each month, and, at the end of the life of the mortgage (usually 25 years), the debt will have been completely repaid.
• Endowment Mortgages
  With an endowment mortgage none of the loan is repaid during the mortgage term.
  Instead, borrowers make two separate payments each month.
  One payment is the interest due on the loan; the other is premium on a life assurance policy.
  
  Endowment policies come in two types.
  
  First the With-profits policy where borrowers premiums are invested by the life office and bonuses reflecting the investment growth are regularly added to policies, to reflect the profits made by the company.
  
  The second type of policy is the Unit-linked endowment.
  
  With a unit-linked policy no bonuses are added; premiums, after charges, are used instead to buy units in a unit-linked life fund.
  
  Many lenders also offer a Low start endowment mortgage.
  
  With a low start plan borrowers pay smaller premiums during the first five years, but slightly higher premiums during the rest of the endowment term.
  
  Endowment mortgages are not as flexible as repayment mortgages
  
  
• Pension Linked
  
  Borrowers who are self-employed, or who are employees with a personal pension plan rather than a company pension scheme, can link their mortgage to a pension plan rather than an endowment policy.
  
  Borrowers pay interest on their loan and monthly contributions to a personal pension plan.
  
  Pension mortgages are very tax-efficient.
  
  
• Investment Linked
  
  Some lenders allow borrowers to use a tax-exempt Personal Equity Plan or a unit trust or investment trust savings plan to pay off their mortgage loan, instead of an endowment policy or pension plan.
  
  Such plans provide a very flexible way to repay a mortgage because there is no fixed investment term, contributions can be increased or decreased, and part of the investment can be cashed in at any time to pay off part of their mortgage debt.
  
  
• Interest Rates
  
  Most lenders offer housebuyers a choice of a variable rate or a fixed rate mortgage.
  
  With a variable rate mortgage the cost of the loan moves up or down during the mortgage term.
  
  With a fixed rate mortgage the interest rate is set for an agreed period of time, which can be anything from 12 months to 10 or 20 years, depending on the lender.
  
  
• Mortgage Repayment Schemes.
  
  There are several different types of mortgage schemes currently available.
  It is important for you to find the one that best suits your personal circumstances.
  
  Standard (Variable Rate) Mortgage
  This is the type of mortgage that the majority of people have and is very straightforward.
  The interest rate you pay will be variable throughout the term of your mortgage.
  Interest rates are likely to move both up and down during this time.
  
  Fixed rate
  A fixed rate loan is one where the interest rate that you are charged is fixed at a specific rate for a set term that can vary usually from 1 year to 5 years, or occasionally even more.
  Once the fixed rate period expires, the mortgage will normally convert to a standard (variable rate) mortgage.
  
  Capped Rate
  Similar to a fixed rate loan in that you have a ceiling above which the interest on your loan will not rise for a set period.
  But if interest rates fall below the capped rate, your rate will decrease with them. At the end of the capped rate period your interest rate will usually convert to the standard variable rate.
  
  Deferred Rate
  This type of mortgage usually allows you to pay less interest to the lender each month than is actually being charged on your loan.
  The difference between what you pay and what you are charged is then added to the outstanding capital.
  
  Discounted rate
  This refers to a percentage discount offered off the current mortgage rate for a specified period, for example, 2% discount on the standard variable rate for a year.
  If the standard rate goes up or down during the discounted period, your interest rate will follow these movements with the same percentage discount being retained.
  At the end of the discounted period(which is not usually more than 2 years) your rate will generally become whatever the standard rate is at that time.
  
  
• Mortgage Indemnity Guarantees
  
  Whilst in some circumstances lenders will be prepared to advance 100% of the price of your property, they often put a lower limit on the mortgage they will give you.
  Typically if the mortgage you require is more than 80% of the value of the property you are buying, lenders may require you to pay an additional fee due to the higher risk.
  The lender will often use this to buy a mortgage guarantee policy.
  This protects the lender should it repossess the property and sell this for less than the outstanding mortgage.
  
  
• Special Offers
  
  From time to time most lenders offer interest rate discounts, typically to first time buyers, and a lower interest rate is often charged to borrowers who want larger loans.
  These offers are often made conditional on the borrower buying one or more of the lender's own life, contents or building insurance.
  
  Assurance cover.
  All responsible mortgage lenders insist that their borrowers take out life assurance to cover the mortgage.
  This means that if one partner dies, the property can pass directly to the survivor, without complication and free of debt.
  
  
• Your commitment.
  
  It is important for you to realise that the final commitment to take on a mortgage loan can only be your decision.
  Before signing on the dotted line make sure that: you are happy that you can afford the monthly payments, especially allowing for the fact that interest rates can change at any time, as can your lifestyle i.e. change of job,starting afamily etc.
  
  You must also be satisfied that the mortgage scheme you have chosen (e.g. Fixed Rate, Deferred Interest) is suited to your circumstances.
  
  You should also have read the detailed terms and conditions of the mortgage offer carefully.
  
  If you have any doubts about any aspect of you mortgage speak to your lender, solicitor or us.
  Any of whom will be happy to clarify the relevant points.