Types of mortgages

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Types of Mortgages

Whatever your circumstances may be, use the full moneyQuest service and we’ll do all the work for you.

Fixed-rate mortgages

A fixed-rate mortgage will mean your monthly payments should stay the same until an agreed date, no matter what happens to interest rates in the market. Fixed-rate periods come in various lengths, for example, 2, 3 and 5 years.

Tracker mortgages

Tracker mortgages follow the Bank of England’s Base Rate and rise or fall along with it. The interest rate charged is the Bank of England’s Base Rate plus an agreed margin. There are ‘lifetime’ trackers for the life of the mortgage, and term trackers which may be for 2 or 3 years.

Standard variable rate (SVR) mortgages

The SVR is the rate of interest that’s usually charged once a fixed rate or term tracker period ends. You can usually move to another fixed or tracker product instead of moving onto a SVR, if you wish. Some lenders may also let you take out a mortgage on their SVR. Your lender decides the rate and may decide to increase or decrease it over the period of your mortgage.

Capital repayment

With a capital repayment mortgage, the monthly repayments include an element which repays the borrowed capital, as well as a payment for the monthly interest of the loan. With this repayment method, you can ensure your mortgage is fully paid off at the end of the mortgage period.

Interest-only

With an interest-only mortgage, your monthly payment only covers the interest charged on your loan for that
month, so the amount you owe in capital doesn’t reduce over time. You’ll need to show the lender that you’ll have some way of paying off the debt in the future (such as an investment or a second property you could sell). Interest-only mortgages are commonly chosen when you’re buying to let.

First-time buyers 95% mortgages

If they are available, a 95% loan to value (LTV) mortgage allows first-time buyers to contribute a 5% deposit. If eligible, this means you could potentially borrow up to 95% of your property’s value or the purchase price (whichever is lower).

Landlord Buy-to-Let mortgages

If you’re buying a property to rent out, you’ll need a buy-to-let mortgage. A buy- to-let investment can be a big commitment, so it’s important to consider costs, responsibilities, and the risks of becoming a landlord.

Types of Protection

Whatever your circumstances may be, use the full moneyQuest service and we’ll do all the work for you.

Life Insurance

We know that looking after your loved ones is extremely important to you and you want to know that they are looked after if the worst happens.

At moneyQuest we aim to find the best insurance policy to suit your needs.

Talk to a personal adviser about how our policies can help you on 0333 370 7943.

Critical Illness Cover

moneyQuest can offer you critical illness cover so that you can focus on your health rather than your finances, if you were seriously ill.

Income Protection

No-one can predict the future, it’s important to make sure that you can pay your mortgage if you have an accident or illness which means you are unable to work.

We can help you plan for the unexpected, let us help you make sure that everything will be okay once any sick pay period ends.

As with all insurance policies, conditions and exclusions will apply.

18 December, 2024

Life insurance is essential protection, so it’s important that you get the most suitable cover for
Don’t delay – get it now Premiums are calculated based on a range of factors, including your age, general health, and smoking habits. So, the younger you are, the cheaper your premiums are lik

16 December, 2024

Property experts predict a surge in transactions early in 2025 ahead of Stamp Duty changes in April.
In the 2022 mini-budget Stamp Duty thresholds were increased, so in the last two years homebuyers have paid a reduced amount of tax. However, in the Autumn Budget 2024, Chancellor Rachel Reeves confir

11 December, 2024

A concerning report has revealed that three in 10 young homeowners are going without life insurance*
An estimated 1.7 million mortgage holders aged 18-40 have not safeguarded their family’s financial future. If they were to die, their loved ones could be left to cover the cost of the mortgage thems