Mortgages

With so many different mortgage deals available, it can be difficult to choose the right mortgage for your situation. At Hampden Financial Services we will guide you through the maze of different options available to you, whether you are buying your own home, looking to remortgage to a better rate, or buying a property to rent out.

We are available to meet in the comfort of your own home or office, during the day or of an evening, at a time that suits you.

With this type of mortgage, you repay part of the amount borrowed together with the interest being charged each month.

Depending on the term of the mortgage in the earlier years of your mortgage, the majority of your monthly repayment is made up of interest.

However, towards the latter part of your mortgage term, the situation is reversed and the majority of your monthly payment will deduct from the amount borrowed.

With this type, you are only paying interest each month. This means that although your payments will be lower, the amount you borrow will still be outstanding at the end of the mortgage term. You will need to have credible arrangements to pay off the mortgage to avoid the property having to be sold, such as an Individual Savings Account (ISA).

With so many different mortgage deals available, it can be difficult to choose the right mortgage for your situation. At Hampden Financial Services we will guide you through the maze of different options available to you, whether you are buying your own home, looking to remortgage to a better rate, or buying an property to rent out.

We are available to meet in the comfort of your own home or office, during the day or of an evening, at a time that suits you.

A fixed rate gives you peace of mind, knowing that whatever happens , as long as you have the fixed rate, your monthly payments will not increase. The downside is when interest rates drop, you don’t get any reduction in your payment.

Fixed rates are very popular with people that want to have security for a period of time. This may be due to a number of reasons, varying from growing a business, and forecasting your costs for the next few years, to knowing what your mortgage payment will be for the next few years, until your children are old enough to go to school.

The fixed rates periods available are typically, 2, 3 or 5 years, but a number of different terms are available at different times

Tracker and discount rates mean that your monthly payments could vary. However a tracker and discount rate have different ways of increasing the rate.

A tracker mortgage is linked to the Bank of England interest rate so your mortgage will be guaranteed to move in line with Bank of England Base Rate.

With a discount rate mortgage you are linked to a lender’s Standard Variable Rate, which can change whenever the lender decides to change it.

A capped rate mortgage is a variable rate that has a ceiling point – A “Cap”. This mortgage may help you benefit from a lower rate initially and also gives you an element of security as you know it will not rise above a certain level for the agreed time.

An offset mortgage allows you to hold money in a linked savings account, which then offsets, or reduces what you owe on your mortgage on a daily basis.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE