Chambers Publication

Guide to moving home

Which type of Mortgage should I choose?

It is very easy to get confused by all the different types of mortgages

that seem to be available in today’s financial jungle, and it is

only right and proper that there is such a wide choice. After all,

everyones individual circumstances are different, making our

financial requirements different.

We must firstly understand that a mortgage is in reality a loan from a

financial institution or body to yourself in order that you may secure

a property and this loan must be repaid over a set number of years,

usually twenty five.

However, this is where simplicity ends and financial complexity

takes over. Because the financial institutions realise that we are all

different with differing financial commitments, they also appreciate

that no one can predict what may or may not happen to us in the

future.

You may find that your income stays much in line with inflation and

you wish to carry on paying the same monthly payment until the

end of the term. Conversely, you could find a definite uplift in your

finances and may wish to increase the amount you pay monthly,

or even pay off a lump sum and complete the mortgage in a lesser

number of years.

Whatever situation arises, you can be sure there will be an option or

clause to cover it, but the average home buyer cannot be expected

to know them all.

It is for this reason that you would be well advised to visit an

independent mortgage broker and seek their help and guidance.

They are highly trained individuals who have intimate knowledge

of the financial services market place and are up to date on all the

changes which take place on a regular basis.

They are not biased towards any particular company, which means

they have access to offerings from a large number of financial

institutions and will, therefore, be able to match you to the most

suitable package for your needs.

Choosing the wrong mortgage might well turn out to be a costly

mistake, and is definitely an experience you can well do without.

The choice of who supplies your mortgage is quite rightly yours,

but you would be well advised to contact an independent financial

adviser and discover just how much they can do for you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP

REPAYMENTS ON YOUR MORTGAGE