There are many types of mortgages to choose from out there. And as with anything, choice can be overwhelming.
Buying a house is one of the biggest decisions you will make in your life. And picking the right mortgage is very important. Why? Because it can greatly impact the amount of money you will have to repay over the term of the loan.
Mortgage rates go up and down, generally a few points above the base rate of the Bank of England. Right now, rates are pretty low, but if you were to pick a variable rate mortgage, could you still afford your monthly repayment?
Opting for a fixed rate mortgage means you know what to expect every month, but might miss out if rates go down.
In any case, make sure you get a mortgage that is well within your means, so you have room in your budget each month. Being a homeowner also includes paying for repairs and maintenance.
If you have extra cash, you can always overpay your mortgage and shave years off your term. Better be in a comfortable financial situation than too tight!
Scroll down below to learn more about the different kinds of mortgages and pick the right one for your needs.