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First Time Buyers
Buying your first home is exciting but can feel overwhelming. With so many factors to consider—deposit, interest rates, and loan options—how do you ensure the best deal? Researching everything takes time, and understanding it all can be even harder. But don’t worry, that’s where we come in!
Important: Your home may be repossessed if you fail to keep up with mortgage repayments.
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Tracker Mortgages:
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Standard Variable Rate (SVR) Mortgages:
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Capital Repayment Mortgage:
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Interest-Only Mortgage:
Mortgage types
A fixed-rate mortgage ensures your monthly payments stay the same, no matter how interest rates fluctuate. Fixed-rate terms usually range from 2 to 5 years.
Tracker mortgages follow the Bank of England’s Base Rate, with interest set at the Base Rate plus an agreed margin. A ‘lifetime’ tracker lasts for the entire mortgage term, while a ‘term’ tracker applies for 2 to 3 years.
The Standard Variable Rate (SVR) is the interest rate applied once your fixed or tracker period ends. Instead of moving to an SVR, you can usually switch to a new fixed or tracker mortgage.
Repayment Options
A mortgage generally offers two repayment options: capital repayment and interest-only. Understanding these choices is essential.
Your monthly payments cover both capital and interest, ensuring the loan is fully repaid by the end of the term.
You pay only the interest each month, keeping the capital debt unchanged. Lenders require proof of how you'll repay the loan later, making this option popular for buy-to-let mortgages.
