Peter Still Mortgage services is an Independent Source for mortgage advice
Whether you are a first time buyer, moving home, looking to remortgage or buying a property to let, We can Help.
Based on the Surrey and Hants Borders, Peter Still has a wealth of experience spanning 20 Years
With consultants that travel throughout the countryside, Peter would be happy to visit you- or if you prefer we will telephone you, email you, or respond as you choose.
We aim to cater for all of your mortgage needs at the most competitive and suitable rates available.
Why not put us to the test?
There are many different types of mortgage on offer to suit many different purposes. This is our guide to the most popular options. Remember Peter Still Mortgage Services can give you full details and provide all the help you need to choose the mortgage that is best for you. If you would like to know more information about any of types of rates mentioned below please ask for a personalised illustration. We normally do not charge a fee for mortgage advice, however a fee paying option is available.
With a standard variable rate mortgage the rate may fluctuate during the lifetime of your mortgage, broadly in line with interest rates in the economy as a whole. This means that when the interest rate goes up, the amount you have to pay goes up. When the interest rate falls, your payments come down. When interest rates change, some lenders immediately adjust the amount they charge borrowers, but others may not pass on the changes.
A tracker rate mortgage will normally track the Bank of England base rate, hence your monthly payments may fluctuate in line with the base rate. The Bank of England base rate fluctuates in line with economic changes. The tracker rate applies for a predetermined period from the start of your mortgage. At the end of the discount period, the interest rate simply changes to the standard variable rate or a less favourable tracker rate.
Tracker rate mortgages often have early repayment charges if you want to switch to a different type of loan, or repay your mortgage during the discounted period. It is also important to check whether you are able to transfer the deal and the agreed rate to your new property.
A fixed-rate loan gives you a guaranteed rate of interest for an agreed period of time. This can be very comforting if you have a large loan or a tight budget, because it guarantees that the payment will not rise. But if interest rates fall, your mortgage payments will stay the same until the end of your fixed term, so you should think carefully about how long you want to be locked into the same rate.
Lenders will offer several deals, providing fixes of anything from 1 to 10 years, or even longer. When the period ends, the mortgage payments may increase.
Fixed rate mortgages may incur early repayment charges if you wish to switch to a different type of loan, or repay your mortgage during the fixed term. It is also important to check whether you are able to transfer the deal and the agreed rate to your new property.
Some lenders will offer a discount on the standard variable rate; hence your monthly payments may fluctuate in line with any changes in the lenders standard variable rate. The tracker rate applies for a predetermined period from the start of your mortgage. At the end of the discount period, the interest rate simply changes to the standard variable rate.
Discount rate mortgages often have early repayment charges if you want to switch to a different type of loan, or repay your mortgage during the discounted period. It is also important to check whether you are able to transfer the deal and the agreed rate to your new property.
With a flexible mortgage, you can pay extra amounts to reduce your outstanding loan or build up money you can draw down on in the future. Some mortgages allow you to vary or even stop payments for periods of time. Interest is calculated daily (or in some cases monthly) so that you can see the benefits of overpayments immediately. This means you could end up saving a significant amount on your mortgage. You may even be able to pay it off early.
The flexibility of being able to stop payments for a while can also be very useful, especially, for example, when you have just had a baby or plan to renovate your home.
There may be a restriction on the amount you can overpay on your mortgage. Underpayments/Payment holidays maybe subject to your payment history.
Offset is a flexible mortgage that allows you to use your current account and savings to reduce your mortgage term, potentially saving you thousands of pounds in interest payments. You can still access your savings and the money in your accounts whenever you want.
Offset works because everyday the balance of the money in your current account and/or savings is ‘offset’ against the balance on your mortgage before the interest is calculated. Whilst the savings and/or current accounts are linked to the mortgage they will not earn any interest.
Some lenders offer ‘cashback’ mortgages, where you receive a percentage of the loan shortly after completing your purchase. These deals can be very appealing; particularly to first time buyers who may need to buy carpets, furnishings and so on.
Cashback mortgages often incur financial penalties should you wish to switch to a different type of loan, or repay your mortgage during the early years of the mortgage. It is also important to check whether you are able to transfer the deal and the agreed rate to your new property.
For certain mortgages (such as fixed, tracker, discount or cashback mortgages) you may incur an early repayment charge if you pay off your mortgage early.
These charges may apply throughout the term of the mortgage, or only for a few years at the outset. You can get details from your lender and they will be confirmed in your mortgage offer. As a result, you should make sure you read the offer carefully.
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