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mortgage rates
mortgage rates
The type of mortgage rates you receive depend on the type of mortgage rate you choose. Mortgage rates are divided into four different categories, with interest varying depending on your credit history.
Huntingdon,
Cambridgeshire,
United Kingdom
(prbd.net)
14/08/2010
"Fixed mortgage rates provide you with a fixed rate for a specified term. This type of mortgage rate is great if you can obtain a low interest rate for the duration of the term. You can then pay off more of your actual mortgage instead of high interes"
Mortgage Rates
The type of mortgage rates you receive depend on the type of mortgage rate you choose. Mortgage rates are divided into four different categories, with interest varying depending on your credit history.
Fixed Rate
Fixed mortgage rates provide you with a fixed rate for a specified term. This type of mortgage rate is great if you can obtain a low interest rate for the duration of the term. You can then pay off more of your actual mortgage instead of high interest payments. Once the term ends, the interest reverts to the lender's variable rate.
Variable Rate
Variable mortgage rates are the lender's basic interest rate at the time you apply for the mortgage. The con of variable mortgage rates is the possibility of having a higher interest rate at any given time as rates change. On the pro side, your interest rate may decrease. Variable mortgage rates can be risky, but can pay off in the end, especially if you are having a hard time finding a lender with a low interest rate.
Discount Rate
To appeal to new customers, lenders may offer discount mortgage rates. The discount lasts for a specified term and is a percentage off the lender's basic rate, which varies based upon the lender. Be sure to plan ahead if you choose a discount mortgage rate. At the end of the term, the standard variable interest rate applies, which can be a shock to your budget.
Capped Rate
If you want to take advantage of a variable mortgage rate, but have the added protection of a fixed mortgage rate, opt for capped mortgage rates. A fixed rate, or maximum interest rate, is determined. During the course of the mortgage, if interest rates decrease, your rate decreases as well, giving you the benefit of both a variable and fixed rate mortgage.
About
Here at Buy-my-place.co.uk we buy homes in Cambridgeshire, Bedfordshire, Northamptonshire and across the UK. We pride ourselves on our ability to put your needs first.
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