Mortgage Lenders

Before approaching a particular mortgage lender, it is important for prospective borrowers to consider their repayment options.

Broadly speaking are two different types available, including:

Repayment Mortgages

Repayment mortgages are the most widely used type of repayment agreement available, and may be favoured by many customers due to their relatively straightforward and reliable nature.

Once the mortgage period has begun, the customer will be expected to gradually repay the lender the borrowed amount with interest included on top. Once this has been repaid, the customer will generally be guaranteed to own the property outright, although monthly repayments may be more expensive compared to an interest only agreement.

Interest Only Mortgages

These mortgages are slightly different and may be favoured by first time buyers in many instances, as monthly repayments may be less compared with a repayment mortgage.

Using this type of agreement, the borrower will only be expected to make monthly repayments for the interest on the mortgage. The actual loan will not need to be repaid until after the mortgage period has ended. However, it is important to remember that the customer will be expected to put money away into a suitable investment vehicle in order to repay off their loan at the end of the agreement.

2 Year Fixed Mortgage – 60% LTV

2 Year Fixed Offer

• Initial Rate – 1.23% APR
• 60% Loan To Value (LTV)
• 2 Year Fixed
• £150 CASHBACK

Overall cost for comparison 4.00% APRC

Call NatWest FREE on 0800 158 2934

Mortgage lenders may also offer customers a variety of different interest rate deals depending on their circumstances. It is important to carefully analyse the pros and cons of a particular deal before committing to it, as their long term viability may depend heavily on the situation of the customer.