Please note: Hillcrest Property Solutions charges a tyipcal fees of £425.00 or £525.00 for residential mortgage applications and 1.0% of the loan amount requested for Buy-to-let applications, though this could be subject to change and dependant on the purchase status. Our fee is only payable upon your application for a mortgage and no fee is currently being charge for initial consultations. Prior to conducting any business our consultants will guide you through our terms of business and refund procedures.
There are several terms used to describe the interest rates you pay on a mortgage, and the key terms are as follows:
Standard Variable Rate (SVR) - The SVR is the lenders standard rate. With a variable rate mortgage you are normally able to switch lenders at any time without being penalised. If you take out a mortgage that has a fixed, tracker or discounted rate once the set period of time ends the loan will usually revert to the Lenders SVR.
Fixed Rate - A fixed rate mortgage allows you to repay interest at a fixed rate, irrespective of any interest rate fluctuations. In other words your monthly repayments will remain the same every month for a time period agreed between you and your lender.
Tracker - A tracker mortgage will usually track any movement in the Bank of England Base rate for a set period, so you will benefit from any falls in interest rates, but will also have to pay more each month should the rate increase.
Discount - The discount mortgage rate is another variation of the standard variable rate. It provides a discount from the lenders SVR for a set period of time. The variable interest rate still fluctuates, meaning your monthly repayments may differ slightly from month to month, but the discount remains constant.
Fixed, Tracker and Discount rate mortgages often have early repayment charges so you need to be sure this is suitable for you for the foreseeable future. Furthermore, the lender may also charge a ‘booking/arrangement fee’ to apply for these type of mortgage. You should ask your adviser to explain these in more detail, or ask for an illustration.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME FORMS OF MORTGAGES. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.