Mortgages - Mortgage Products

Ways Of Staying In Control?

Many lenders offer mortgage rates designed to help you stay in control of your mortgage payments and to attract you to their offer. They offer a variety of products depending on your attitude to risk including: 

- The Standard Variable Rate Mortgage
Mortgage payments go up and down as mortgage rates change. Mortgage rates usually move in line with the base rate set by the Bank of England.

- The Base Rate Tracker Mortgage
Mortgage payments are directly linked to the Bank of England base rate and immediately change in line with base rates.

- The Fixed Rate Mortgage
The mortgage rate is fixed for a stated period of time enabling easier budgeting then typically reverts to the lenders Standard Variable Rate.

- The Discounted Mortgage Rate
Discounts are offered on lenders standard variable rates for a set period of time before reverting to the Standard Variable Rate.

- The Capped Rate Mortgage
The mortgage rate will not exceed a 'Capped' agreed limit for a specified period. A variation to this is a  'Capped & Collar' rate, whereby the rate will not rise above a certain level and will not fall below a certain level for a specified period.

- The Cashback Mortgage
Lenders offer a cash lump sum to new borrowers.

- Flexible Mortgage
These come in a variety of guises, but in most cases they allow you to make overpayments/underpayments, borrow back money repaid and take payment holidays when necessary. It is important to note that many of the benefits of a flexible mortgage are also available in conjunction with other mortgages such as fixed or discounted rates etc.

When a fixed, capped or a discounted rate period ends, it is important to remember that your monthly payments will then be based on the lenders Standard Variable Rate, which may be higher or lower than your previous rate.

Your home is at risk if you do not keep up repayments on a mortgage
or other loan secured on it.
A life assurance policy may be required.
Written quotations available on request.
Partners: Kenneth Harrington & Katherine Harrington
Harrington & Horne Financial Services are Independent Financial Advisers which are directly authorised and regulated by the Financial Services Authority
Head Office: 31 Southdown Avenue, London W7 2AG