I offer proffesional mortgage advice so you dont have to do the hard work.

Method of interest rate deals which are offered by most lenders and special features of some mortgages available at present.

The best one for you will depend on your circumstances at the time - so it's important to understand your options so talk to me before making up your mind.

Repayment methods and choices you have to make.
There are the two main methods, which will enable you can pay off your mortgage. These are called 'interest only' or 'repayment'.

Repayment mortgage
With a repayment mortgage you can make monthly repayments for an agreed period of time known as, (the term) until you've paid back the loan and the interest owed on it.

Interest only mortgage
With an interest only mortgage you can make monthly repayments for an agreed period however, this will only cover the interest on the loan you have taken out. You'll normally also have to pay into another investment plan or bank savings, that'll may pay off the loan at the end of the term, however this involves an element of risk.

Standard variable rate
With a variable rate mortgage your payments go up or down with the lender's standard interest rate. This often changes following Bank of England base rate changes.

Standard variable rate with cash back
With these arrangements, you get a cash lump sum as well as the loan at the beginning, when you take out the mortgage. You're usually tied into the variable rate for a set period; however you may have to repay this, if you pay off the loan early.

Discounted rate
You pay a lower interest rate at the beginning and then move to another rate (usually the lender's standard variable rate, but not allways) after a set period.

Tracker
Tracker rates are linked to the Bank of England rate or some other 'base rate' such as the ‘L.I.B.O.R.’ This means they'll always go up or down in line with changes to the rate it is tracking..
Fixed rate
You pay a fixed rate of interest for a set period, so you know exactly what you'll be paying each month during that term. When the fixed period ends, you'll usually move to the lender's standard variable rate. There are usually penalties if you pull out early.

Capped or cap and collar
With a capped rate you pay a variable interest rate, but there's a ceiling so that your payments won't go above a certain amount for a set period chosen at outset. Some deals include a collar too; this is the lowest rate your loan will be subject to. If interest rates fall below the collar, you'll lose not have got the best rate, if they rise for sufficient time you will be better off.
Which type of interest rate is suitable for you and your circumstances?
The suitability of different types of deal, will depend on your personal circumstances at the time, and any tie-ins {contractual periods you need to comply with after the deal is over} or penalties that may be attached.
Flexible, current account and offset mortgages
Flexible, current account as well as offset mortgages, give you more control to vary your monthly payments to the lender. They can be used with repayment or interest only mortgages. Four such examples are:

• make lump sum repayments  
• pay off your mortgage early
• pay less one month and more the next

take a 'payment holiday'

Discounted rate
You pay a lower interest rate at the beginning and then move to another rate (usually the lender's standard variable rate, but not allways) after a set period.

Tracker
Tracker rates are linked to the Bank of England rate or some other 'base rate' such as the ‘L.I.B.O.R.’ This means they'll always go up or down in line with changes to the rate it is tracking..
Fixed rate
You pay a fixed rate of interest for a set period, so you know exactly what you'll be paying each month during that term. When the fixed period ends, you'll usually move to the lender's standard variable rate. There are usually penalties if you pull out early.

Capped or cap and collar
With a capped rate you pay a variable interest rate, but there's a ceiling so that your payments won't go above a certain amount for a set period chosen at outset. Some deals include a collar too; this is the lowest rate your loan will be subject to. If interest rates fall below the collar, you'll lose not have got the best rate, if they rise for sufficient time you will be better off.

Which type of interest rate is suitable for you and your circumstances?
The suitability of different types of deal, will depend on your personal circumstances at the time, and any tie-ins {contractual periods you need to comply with after the deal is over} or penalties that may be attached.

Flexible, current account and offset mortgages
Flexible, current account as well as offset mortgages, give you more control to vary your monthly payments to the lender. They can be used with repayment or interest only mortgages. Four such examples are:

• make lump sum repayments  
• pay off your mortgage early
• pay less one month and more the next

take a 'payment holiday'

6136CGJ
Phone: 0845 68 68 268
Please quote 6136CGJ upon your enquiry.

E-Mail: Colin.Johnson@shifa.uk.net

STIRLING HOUSE
Administration Centre
PO Box 268
Malvern
WR14 9DD