Residential

Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. We recommend you seek mortgage advice which is individually tailored to your needs and requirements. Lenders are in competition with each other for your valuable business, they are therefore willing to offer incentives to entice you, however, how do you decide which incentives actually benefit you and which are there just to get your business? There are so many types of mortgage available that it is easy to become confused, possibly opting for the product offering the lowest headline rate of interest. But when booking or arrangement fees, conditional insurances, higher lending charges, lock-ins and early repayment charges are taken into account, the products may not be as attractive as you might have first thought.

Fixed Rate mortgages
With this type of mortgage, you can avoid the uncertainty of possible changes to your monthly payment by fixing the interest rate for a set period of time. This will be agreed at the start of the mortgage. The actual fixed interest rate and period over which it will apply will depend on the terms of the deal you have chosen.
Variable Rate mortgages
The interest rate on a tracker mortgage is directly linked to the Bank of England Base Rate. It’s set at a certain percentage above or below it for a set period of time. Any change in the Bank of England Base Rate, up or down, will be reflected in your mortgage rate.

How does the 125% mortgage work?
125% Mortgages are different to a normal mortgage. It works by combining your secured mortgage with an unsecured loan at a single interest rate with one combined monthly payment. This combination can be worth up to 125% of your home’s value. Up to 95% of the value of your home is a secured mortgage. The remainder is an unsecured loan of up to £30,000 which is at the same interest rate as the secured mortgage.
Say the value of your property is £100,000. You could get a secured mortgage of up to £95,000. And have the facility to borrow up to £30,000 unsecured loan for anything else.

Flexible Mortgages
Commonly known as the ‘Australian’ mortgage, these are becoming more popular, particularly with those who have savings, or large bonuses/commissions. A flexible mortgage will allow you to make overpayments, underpayment, even take payment holidays. You may also be able to combine your bank account with your mortgage, meaning your mortgage could be paid of faster than you think without changing anything you are currently doing.

Don’t forget, at CML we are part of the UK’s fastest growing mortgage network, with over 2000 exclusive deals available. So nobody is better placed to get you the best deal on your mortgage.