Best Mortgage Rates
Finding the best mortgage rates for your property purchase can be a daunting experience at best. From banks and building societies offering their "best rates" to specialist mortgage lenders who'll track down the best mortgage rates for you, there seems to be no end of companies who want to sell you their best mortgage services these days. But, when you're confronted by a wall of promotional material and mortgage rates chatter, it can sometimes be difficult to extract the best impartial mortgage rates advice to help you choose the best mortgage rates for your circumstances.
Choosing the best mortgage rates
Two types of mortgage can be acquired from the best lenders - a Repayment mortgage and an Interest Only mortgage. A Repayment mortgage involves regular repayments of interest & capital over the term of the mortgage, after which the mortgage will be fully paid. With an Interest Only mortgage the borrower will pay back only the best interest rates applied to the mortgage, and will use the best investment vehicle available to pay off the capital. Which type of mortgage is best for you will depend upon your circumstances, however it is generally acknowledged that repayment mortgages are best for those who want a guarantee that their mortgage will be paid off at full term.
Across both types of mortgages there are choices to be made as to the best mortgage rates. The best rates for you though are not necessarily on a mortgage that provides the lowest rates. For instance, a standard variable rates mortgage with the best discounted rates over an introductory period may be the best to start off with, but when the jump is made to standard variable rates, it may not turn out to be the best. Given that even the best mortgage lender may also apply a penalty clause to early mortgage pay off or transfer, then a mortgage with the best rates may prove to be expensive at best in the long-term.
Fixed mortgage rates deals are the best if you want peace of mind over the short to medium term. Fixed rates mortgages are very competitive and are best at protecting repayments against mortgage rates fluctuations. They are not the best though if mortgage rates fall in line with interest rates. They also attract high redemption penalties.
Capped and collared mortgage rates are best for borrowers who want a median product between the best variable rates and best fixed rates mortgages. These allow for limited rates fluctuations between predetermined rates points, after which the rates become fixed until such time as the rates fall back down into the capped and collared rates band. Additionally, some lenders offer low-start mortgages, which are best for borrowers who want to spread the balance of mortgage repayment costs.