The idea is that you have a repayment plan in place, such as ISA investments, so that you have built up the lump sum you need by the time your mortgage ends.
While we make every effort to ensure the accuracy of this data you should always confirm the terms on offer with the lender/broker.
Deal length: Given that most mortgage products levy an early repayment charge (ERC) during the term of deal it is important to think about how long you are happy to tie yourself in for.
Comparing mortgages, moneySuperMarket compares a wide range of mortgage deals and appreciates that finding the right mortgage can feel intimidating.And when you come to remortgage remember to reduce the term on the new deal that you apply for.For example, if you took out a two-year fixed over a 25-year term and the fixed rate is coming to an end, when you remortgage you should be aimimg to bring the term down to 23 years.A, yes, every application for credit you make appears on your credit record, so avoid applying for too many.It can cost thousands of pounds to get out of a mortgage early as the penalty is usually a percentage of the outstanding mortgage.However, you can go for a longer or shorter period of time.If the base rate fell to 0, your new mortgage rate would.Also bear in mind that these set up costs can sometimes comprise of two fees.However, interest-only mortgages are getting harder to come by because of fears that there is a mortgage time bomb waiting to explode because millions of people have taken them out and have no repayment plan in place.So if your mortgage if 100,000 and the ERC is 2 you'll have to pay 2,000.A high fee is often worth paying in order to secure a low interest rate if you are applying for a large mortgage.
For example, if you go for a five-year tracker an ERC will probably apply for the first five years.
Rather than being linked to the Bank of England base rate, discounts are linked to the lender's standard variable rate (SVR).
Fixed rate mortgages: As the name suggests this type of mortgage has an interest rate that stays the same for a set period.You need to work out the total cost over the term of the deal.With scary maze game scream a repayment mortgage your monthly payments are calculated so that you're paying some of the capital off as well as the interest and will have repaid the entire loan by the end of the term.Variable interest rates can increase or decrease at any time because they are set by the lender.Some lenders have stopped offering them, while those that do only offer them to people with very large deposits.This is where MoneySuperMarket can help.