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 01268 644 160.

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.

23 December, 2021

In a nation of procrastinators, the semi-organised person rules.
If you’ve been avoiding your to-do list, you’re not alone: 84%* of us are affected by procrastination in some way. One task you should stop kicking down the road is sorting out your protection. Th

14 December, 2021

The number of people seeking specialist mortgages increased going into Q3 2021, according to researc
This is according to mortgage broker search data gathered by the financial services provider L&G1, which revealed a significant jump in searches on behalf of borrowers with credit impairments betw

25 November, 2021

We’re delighted today to launch our new-look website. And we’ve given our whole moneyQuest brand
Senior Sales Manager, Leanne Beales told us: “We’ve made the new site easier than ever for clients to get in contact with us. There’s now more guidance for First Time Buyers, helping to make the