Finding the right mortgage
On the surface, mortgages are a minefield of different products and confusing terms, yet there are a few fundamental basics they all have in common. Before you start looking, it’s worth looking at the different types of mortgages available to you and learning how they work.
Standard Variable rate – with a standard variable rate mortgage your payments may go up or down as the lender adjusts their rate in line with general interest rates.
Fixed-rate – if you like the idea of the same mortgage payment each month, then this may be the ideal choice. The rate of interest on these loans is usually fixed for a set period of time.
Capped-rate – with a capped rate mortgage your payments are guaranteed not to rise above a pre-agreed amount. Unlike a fixed mortgage, you’ll also benefit from lower monthly payments if the interest rate goes down.
Tracker – this type of loan ‘tracks’ movements in the Bank of England base rate for a specified period of time. So, if the base rate falls, borrowers can look forward to lower monthly payments.
Cashback – if you’re looking for a mortgage that gives you extra cash to spend when you move in, a cash back option could be the answer. This could be anything from a one off payment of £200, to a percentage of the overall loan.
Flexible/Australian – with this kind of loan you have a greater degree of flexibility in how you repay. So, you can pay more when you have more money and pay less or take a payment holiday when you have less to spend.
Offset/Current Account – this combines your mortgage, current account and savings account into one and uses spare cash in your current account and savings to reduce your mortgage payments.
If you would like help in choosing the right mortgage, or would like to find out more about mortgages, please contact Persimmon today and we’ll put you in touch with one our recommended mortgage brokers.
Search new homes by cities in the UK
Images shown are for illustrative purposes only. Elevations and treatments may vary.
The prices shown are correct at the time of being published but are subject to change without prior notice, please contact our Marketing Suite for accurate price information.
Site layouts are intended for illustrative purposes only, and may be subject to change, for example, in response to market demand, ground conditions or technical and planning reasons. Trees, planting and public open space shown are indicative, actual numbers and positions may vary. Site plans does not form any part of a warranty or contract. Further information is available from a site sales advisor.
The dimensions shown are approximate and the precise measurements may vary.
For full details on the HM Government-backed Help to Buy: Equity Loan scheme please visit www.helptobuy.gov.uk.
Every effort has been taken to ensure the information provided here is accurate however, particulars regarding local amenities and their distances are for general guidance only. Where schools and other educational facilities are mentioned they are intended to highlight their distance from the development and don’t represent a guarantee of admission or eligibility. Travel times and distances assume journeys are made by car. Times are likely to vary according to travel conditions and time of day.
Copyright 2020 Persimmon plc. All Rights Reserved.
Persimmon plc, Registered Office: Persimmon House, Fulford, York UK, YO19 4FE.
Registered in England No. 1818486