Mortgages

Fixed Rate Mortgages

As the title suggests, this is an interest rate that is fixed and does not go up or down during the fixed rate period.

Typically, fixed rates on offer range between 2, 3, 5 and 10 years, although other terms are sometimes available.

Clients tend to choose these products as the monthly payment is fixed and therefore the same every month so this helps with budgeting.

If rates are very low or on the rise, then a fixed rate can offer a great option.

Variable Rate Mortgages

Again, the name is in the title.

Variable rates are not fixed so when you take out a mortgage on a variable rate you could find your payments increase or decrease depending on the Market at the time.

This is a great option when rates are coming down, but a lot of people are cautious if there is a threat of rates rising in the future.

Variable rate mortgages are often referred to as tracker rates or discounts.

Help to Buy Mortgages

This is a scheme introduced in 2013 to assist those looking to purchase new build properties, particularly first-time buyers.

Help to Buy requires a minimum of a 5% deposit and this is topped up by applying to the scheme for a 20% equity loan, giving a total of 25% as a deposit. The rest is made up of a mortgage, therefore allowing clients to secure a far better rate.

There are no payments required on the equity share loan for the first 5 years.

After this the loan is either repaid, re-financed or interest added, and monthly payments commence alongside the mortgage.

We are very active in this sector of the Market and are happy to discuss with you in more detail.

Shared Ownership Mortgages

This scheme allows those wanting to get a foot on the first rung of the housing ladder but are not in a position to purchase a property with a mortgage in full.

The scheme allows you to part purchase and part rent with an option of buying more of the property as you go along.

Buy to Let Mortgages

Those that are looking for a long-term investment in property have over the years purchased properties to rent out with a buy to let mortgage. There is a large demand for quality private rental properties and this has proven for some years to be a great option for investors and renters alike.

Seeking expert advice in this area is essential as the majority of lenders will only deal with intermediaries rather than direct with the public.

Re-Mortgages

Clients normally take a mortgage over a number of years and so it is critical that this is reviewed on a regular basis to make sure you get the best deal at all times. Here at Compass we start the review of your mortgage around 4 months before the end of your current deal. At this stage we can discuss and arrange a new mortgage for you in time so that you avoid reverting to a lenders standard variable rate, which could mean a significant increase in your monthly payments!

There are a range of options available from switching to a different lender or going back to your current lender and switching to a more competitive rate than is usually offered when reverting to their standard variable rate.