top of page
A key with a wooden house model on a table

Professional Mortgage Advice in Dunmow

Looking for mortgage advice in Dunmow? Howlett Reid Wealth Management offers tailored mortgage solutions to help you secure your dream home.

Give us a call today to get started

Over 30 Years' Experience

Fully Qualified

Free Initial Consultation

Mortgages

Mortgages are one of the largest single transactions in most people’s lives. Buying a property can be a stressful and time-consuming experience; nowadays the financing of a mortgage is a case of finding and selecting the most suitable mortgage, rather than simply accepting a lender’s offer.

​

Banks, building societies and smaller niche lenders compete for your business, all offering a variety of interest rate deals, associated fees and other enhancements to attract borrowers.

​

The two main methods of repaying a mortgage are repayment (capital and interest) and interest only. It is also sometimes possible to set this up using a combination of the two. A description of these methods is provided below.

​

Repayment (capital and interest) method

Under the repayment method your monthly repayments consist of both interest and capital and, over time, the amount of money you actually owe will decrease. In the early years, your repayments will be mainly interest, so the capital outstanding will reduce slowly at the start of the mortgage.

​

This method ensures that your mortgage is repaid at the end of the term, providing all payments are made on time and in full.

​

Interest-only method

As the name suggests, you will only pay the interest on the amount borrowed and none of the capital, so the capital is still outstanding at the end of the term,  Therefore you will usually need to take out some kind of investment policy to save up enough money to repay the mortgage at the end of the term.

​

Traditionally, the preferred product for repaying the capital of an interest-only mortgage was a mortgage endowment policy (which included a set amount of life cover). Customers now tend to use Individual Savings Accounts (ISAs) and pensions to build up a sufficient sum and to take advantage of the tax breaks offered by these products.

​

The information within this article is purely for information purposes only and does not constitute individual advice.

 

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.

Mortgage Products


There are several terms used to describe the interest rates you pay on a mortgage, and the key terms are as follows:

​

Standard Variable Rate (SVR) – The SVR is the lender’s standard rate. With a variable rate mortgage you are normally able to switch lenders at any time without being penalised. If you take out a mortgage that has a fixed, tracker or discounted rate, once the set period of time ends the loan will usually revert to the lender’s SVR.


Fixed Rate – A fixed rate mortgage allows you to repay interest at a set rate, irrespective of any interest rate fluctuations. In other words, your monthly repayments will remain the same every month for a time period agreed between you and your lender. 


Tracker – A tracker mortgage usually tracks for a set period any movement in an index specified by the lender; this for example could be the Bank of England Base Rate. You will benefit from any falls in the specified interest rates, but will also have to pay more each month should the rate increase.


Discount – The discount mortgage rate is another variation of the standard variable rate. It provides a discount from the lender’s SVR for a set period of time. The variable interest rate still fluctuates, meaning your monthly repayments may differ slightly from month to month, but the discount remains constant.


Fixed, Tracker and Discount rate mortgages often have early repayment charges so you need to be sure this is suitable for you for the foreseeable future. Furthermore, the lender may also charge a ‘booking/arrangement fee’ to apply for these types of mortgage. You should ask your adviser to explain these in more detail, or ask for an illustration.

​

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments

Need mortgage guidance? Give us a call to explore your options.

Contact Us

Business Hours

Mon-Fri: 9am-5pm

Sat: Closed

Sun: Closed

Follow Us

  • Google G Icon
  • Yell business page
Read out reviews on Yell.com logo in colour
bottom of page