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Data Protection Declaration

New Mortgage Solutions and First Complete Ltd will process all information in accordance with the Data Protection Act 1998 and it will be treated as private and confidential now and in the future. The only exceptions to this will be when the law requires us to disclose information or, with your consent, where disclosure is necessary when arranging or servicing your mortgage or protection contracts.

To fulfil our regulatory obligations, we will retain copies of your records for no longer than is necessary or for the duration of any contract you may enter into. You have the right to inspect these records at any time.

Our Future Relationship

Our ongoing business relationship with you is important and we would like to be able to contact you by telephone, post or email from time to time to review your mortgage and associated protection product arrangements and introduce other services that may be of interest to you from ourselves or our associated companies.

To fulfil our regulatory obligations, we will retain copies of your records for no longer than is necessary or for the duration of any contract you may enter into. You have the right to inspect these records at any time.

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    Guide to Mortgages: the different options

    There are lots of different types of mortgage to choose from on the market, and you will have opportunities to change loans throughout the duration of your mortgage. Here is our guide to mortgages giving you a quick breakdown of the different options.

    Mortgages fall into two main categories, Fixed Rate and Variable Rate:

    Fixed rate

    The interest you’re charged stays the same for a set period, often between two to five years no matter what happens to the lender’s standard variable rate.

    Advantages: you know exactly what interest you will be paying for the duration of the deal and can budget accordingly.

    Considerations:

    • You may need to pay an arrangement fee.
    • There will be a charges if you want to leave the deal early.
    • You will need to look for a new mortgage deal a few months before the fixed rate is due to end as you will be automatically switched to the lenders standard variable rate, which is likely to be higher.

    Variable rate

    The interest you pay can change depending on rises and falls in the lender’s standard variable rate. Whilst you may have a better starting rate than on a fixed term mortgage, you will need to make sure that you have enough money put aside if rates do increase.

    Variable rate mortgages come in various forms:

    Standard variable rate (SVR)

    Mortgage lenders charge a standard interest rate, which can increase or decrease, especially if there are rises and falls in the base rate set by the Bank of England.

    Advantages

    • There’s usually no arrangement fee.
    • You can usually leave or change to another mortgage at any time without an early payment, unlike a fixed mortgage. You can also overpay if you want to.

    Disadvantages
    The rate can change, for the better or worse, at any time throughout the duration of the loan.

    Discount mortgages

    Lenders can offer a discount on their standard variable rate (SVR) for a set length of time, which is usually two to three years. These are decided independently by each lender and so will likely differ.

    Make sure you consider both the starting point of the SVR and the percentage discount rate. One lender may be offering a higher discount than another but their starting rate may be higher.

    Example:
    Bank A has a 2% discount off a SVR of 5% (so you’ll pay 3%)
    Bank B has a 1.5% discount off a SVR of 4% (so you’ll pay 2.5%)

    Bank B is therefore the better option despite having a higher discount.

    Advantages

    • Cheaper monthly repayments at the start of the loan.
    • If the SVR is reduced, you’ll pay even less each month.

    Disadvantages

    • The rate could increase at any time throughout the duration of the loan, and especially if Bank of England base rates rise

    Considerations:

    • You may need to pay an arrangement fee.
    • You are likely to be charged an Early Repayment Charge if you move loans before the end of the discount period.

    Tracker mortgages

    While other variable rate mortgages can change the standard variable rate at any time at the lenders discretion, a tracker mortgage moves directly in line with an index such as the Bank of England’s base rate at a set margin, for example, plus or minus 1%. So if the base rate goes up or down, your rate will too by the same percentage.

    Loans usually last for two to five years, although some lenders will do it for longer, even for the duration of your mortgage.

    Advantages

    • If the base rate drops, so will your mortgage payments.

    Disadvantages

    • If the base rate increases, so will your mortgage payments.

    Considerations

    • You may need to pay an arrangement fee.
    • You are likely to be charged Early Repayment Charges if you move loans before the end of the tracker loan period.

    Offset mortgages

    You can link your savings or current account to your mortgage so that you only pay interest on the difference between what you have saved and what you owe. So if you have borrowed £200,000 and have £20,000 worth of savings, you will only pay interest on £180,000.

    Since less interest is being taken out of your monthly mortgage payments than a conventional repayment mortgage, you will be able to pay off a greater proportion of your monthly repayments.

     

    At New Mortgage Solutions we can help you to find the right mortgage to suit your situation and at the rate that you can afford. Come and have a no obligations chat with us or call us today on 020 8295 2935

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  • Guide to Mortgages: the different options

    There are lots of different types of mortgage to choose from on the market. Here is our guide to mortgages giving you a quick breakdown of the different options.

    Read more

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