Mortgages should be straightforward - you borrow money to buy a house and pay interest on the loan. In a hugely competitive market, building societies and banks are continually updating and extending their range of mortgages.
The most important points are how you pay back the capital you borrow and how you pay the interest on it.
You can either pay the capital a little at a time as you go (repayment mortgage) or pay it all off at the end (Interest only mortgages).
Expert Mortgage Advice
Regardless of whether you're a first time buyer, home mover, or looking to remortgage to another lender to take advantage of a better mortgage deal, the mortgage market can be a confusing place. There are numerous mortgage deals on the market, which we can explain the pros and cons to you.
The advantage of using an experienced broker is that we can personally handle your mortgage application from beginning to end.
Are you looking to purchase a property, remortgage or buy-to-let? or simply want some expert mortgage advice? Then Michael James at Trafalgar Mortgages & Financial Services can help. Trafalgar Mortgages & Financial Services based in Plymouth offer mortgage, remortgage and protection advice.
For details of our fees for mortgage business please see our page Our Fees
Please contact us for advice in choosing the right mortgage for your needs.
Paying back the capital on your mortgage
You can either pay a little at a time as you go (repayment mortgage) or pay it all at the end (interest only).
Each monthly payment pays off a little of the underlying debt, as well as interest on the loan. At the end of the repayment term providing all payments have been made in full and on time the mortgage will be repaid in full.
Interest only mortgages
With this type of mortgage, you pay-off the interest on the loan but not the capital. Then at the end of the mortgage term it is your responsibility to repay the capital.
Variable, fixed and capped rates
Variable: paying the going rate on your loan, goes up and down with changes in interest rates. Fixed rate: The interest rate is fixed for the period agreed. Capped rate: A capped mortgage works much like a standard variable rate mortgage – the interest you pay on your monthly mortgage repayments can go up or down but the interest rate can never go past a certain limit - the cap - during the deal, even if the standard variable rate goes higher than this.