Mortgages should be straightforward - you borrow money to buy a house and pay interest on the loan. In a hugely competitive market, building societies and banks are continually updating and extending their range of mortgages.
The most important points are how you pay back the capital you borrow and how you pay the interest on it.
You can either pay the capital a little at a time as you go (repayment mortgage) or pay it all off at the end (Interest only mortgages).
Your home may be repossessed if you do not keep up repayments on your mortgage.
For details of our fees for mortgage business please see our page Our Fees
Please contact us for advice in choosing the best mortgage for your needs.
Paying back the capital on your mortgage
You can either pay a little at a time as you go (repayment mortgage) or pay it all at the end (interest only).
Each monthly payment pays off a little of the underlying debt, as well as interest on the loan. At the end of the repayment term providing all payments have been made in full and on time the mortgage will be repaid in full.
Interest only mortgages
With this type of mortgage, you pay-off the interest on the loan but not the capital. Then at the end of the mortgage term it is your responsibility to repay the capital.
Variable, fixed and capped rates
Variable: paying the going rate on your loan, goes up and down with changes in interest rates. Fixed rate: The interest rate is fixed for the period agreed. Capped rate: These are fixed, but if rates fall you pay the lower rate.