Mortgages

A mortgage is a long term loan secured on a property. Traditionally a mortgage runs for a maximum of 25 years, however there are many flexible mortgages available which allow for either early repayment or even an extension of the loan period

These days there is a loan to suit everyone, whether you are a first time buyer, an investor or buying to let:

These days there is a loan to suit everyone, whether you are a first time buyer, an investor or buying to let:

  • Repayment mortgage: This is where payments are made up of part capital and part interest. During the early years of the mortgage, little capital is repaid but the rate of repayment accelerates over time. Repayment mortgages are normally quite flexible as it is usually possible to increase your monthly payments in order to pay off the loan more quickly.
  • Interest only: This type of mortgage does not require you to pay off the capital until the end of the loan. The monthly payments to the lender are made up entirely of interest on your outstanding debt. To be able to pay off the loan at the end of the term you will need to have saved the equivalent amount through some sort of savings plan, typically an endowment or ISA.
  • Flexible: Flexible mortgages are fairly new to the market. They offer you the facility to increase or decrease your monthly payments depending on your available cashflow and should reduce the overall amount of interest you pay throughout the loan term.
  • Offset: this is a combination of current, savings and mortgage accounts. The mortgage element will still be a repayment, interest only or flexible loan, but the amount of money in your current and/or savings accounts is taken into account when the interest on your mortgage is calculated.

The interest on your mortgage can also be calculated in a variety of different ways.

  • Variable: the interest rate you pay rises and falls in line with the bank of England base rate.
  • Fixed: the interest rate is fixed for a specified number of years, normally between 1 and 5, although longer terms are available. There can be early repayment charges if you repay your mortgage before this time is up.
  • Discounted: the lender gives you a discount on its standard variable rate for a given time.
  • Capped: the interest rate will not rise above a certain percentage for a fixed term period

There are many other incentives offered by lenders to ensure you take out their mortgage, ranging from reduced fees to cashback options. Newstead will ensure that we find the right mortgage for you.

Re-mortgages

If you use your mortgage to consolidate unsecured borrowing or to pay for short term expenses, may mean you end up paying more over the long term.

Whatever your reasons for re-mortgaging Newstead are here to help you choose the right deal to achieve your financial goals.

You can choose how we are paid for mortgage advice: pay a fee, usually £995, or we can accept commission from the Lender.

Think carefully before securing other debts against your home. Your property may be repossessed if you do not keep up repayments on your mortgage.