Taking out a mortgage will be one of, if not, the biggest financial decisions you’ll ever have to make in your lifetime, and as such, is why it’s important that you find the right deal for you.

By talking to one of our independent mortgage advisers you’ll be able to receive advice and guidance based on your personal circumstances and receive a helping hand throughout the whole mortgage process.

However, in the meantime, let’s take a look at what will determine the mortgage you need and also the type of mortgage deals on the market.

Finding the Right Mortgage Deal For You

When looking for a mortgage deal, the pool of ones available to you, as well as what would work the best for you, will most likely be shaped by your financial situation, your attitude to risk, and also things such as your deposit savings and credit score. 

Time will also play a huge role in what deal will be most suitable for you as certain deals at specific times can be better than others.

It’s also important to remember that what works well for someone else, might not work for you and that’s okay – this is where a mortgage adviser comes in.

An independent mortgage adviser will be able to search the market on your behalf and be able to access lenders and deals that you otherwise may not find. They will also ensure that you make decisions that work for you.

Types of Mortgage Deals

Mortgages are a style of loan that typically has to be paid back with added interest in monthly installments.

Different types of mortgage deals will have different levels of interest rates and factors which are important to understand how they will affect your repayments, so let’s break some of them down:

1. Fixed Rate Mortgages

Fixed rate mortgages charge you a fixed rate of interest over a specific period of time, typically from when you take out the deal.

After your fixed rate mortgage term ends, the interest you pay to the lender will then change to their SVR (standard variable rate) which doesn’t have a locked-in percentage and may encourage you to remortgage.

Fixed rate mortgages are one of the least risky mortgage deals, and as such can be great for first-time buyers.

2. Tracker Mortgages

Tracker Mortgages are a type of variable rate mortgage which follow a base rate (normally set by the Bank of England), but can also be set higher or lower.

These are good as when the base rate falls, you will also see it mirrored in the interest you pay. However, there is no set limit as to how high the rate can rise, meaning that you could also end up paying a high rate if base rates skyrocket. 

Tracker mortgages are often time-sensitive and are ideal to take out when the base rate is falling or is likely to fall.

3. Discounted Mortgages

Discounted mortgages can be appealing as they tend to offer some of the lowest rates on the market. However, they do come along with some catches.

The ‘discount’ period is for a limited time only and they track a lender’s SVR instead of the base rate which makes rate rises harder to predict and increases the chance of them being high.

However, in saying that, this type of mortgage is often suitable for those who are looking for lower rates and can adjust to that unpredictability. 

4. Variable Rate Mortgages

Variable Rate Mortgages are one of the riskiest mortgage deals and are unpredictable as they follow a lender’s SVR and as a result, can mean that the rate you pay will increase while base rates don’t.

People who are struggling to secure a deal can often be drawn to variable rate deals as the initial rate appears affordable.

Final Thoughts

These are just some of the most common mortgage deals available on the market, and whether or not one of them is right for you will greatly depend on your own financial circumstances and attitude toward risk.

By talking to an independent mortgage adviser you’ll be able to gain unbiased and independent advice which considers the whole market, and you can rest assured that they will always put your needs first and suggest steps that are right for your situation.

They can also help you with the application process and help to increase your chances of getting accepted.

To discuss what mortgage deal would be right for you and to get started on your mortgage journey, why not contact our experienced team of independent mortgage advisers who are here to help.

Coffey Brooks are a team of Independent Financial and Mortgage Advisers based in Clacton-On-Sea, Essex and are directly authorised and regulated by the Financial Conduct Authority.

Disclaimer – This article and the information it contains has been written to the best of our knowledge and is not intended to be a guide to follow or a recommendation to pursue certain strategies. Please seek financial advice from a qualified financial adviser before making any decisions about your money.