Repayment, interest only, fixed rate, capped, discounted, tracker, cashback, offset, SVR and ERC, Buy to Let or Help to Buy? The world of mortgages is full of such jargon, which can make it pretty overwhelming for even the most experienced homeowner.
It's little wonder that so many people stick with the same mortgage lender for the whole of their repayment period... but this approach could be costing you thousands of pounds of interest on uncompetitive deals.
If you're not already on the housing ladder, these terms may mean nothing. The risk, therefore, of simply taking what your bank offers, or getting tied into a deal you don’t really understand, is all the greater.
The recent period of historically low interest rates has given those who could afford to repay their mortgage the opportunity to extend their borrowing and defer repayment, enabling them to enjoy the benefit of a higher return on their investments than the interest paid on their debt.
However, this strategy does come with risks, such as if interest rates were to rise sharply while investment values were at a relative low point.
Finally, buy to let investors may be wondering whether it is time to take a different approach as the government steadily reduces the tax breaks available. For some of these investors, the rate of interest on their mortgage will make the difference between a profit and a loss.
So, whichever group you or your family fall into, what is the best way to navigate this potential minefield ? The answer, you won't be surprised to hear us say, is to take advice from a specialist.
For the last decade or so, we haven’t been providing this advice ourselves. That has now changed, as we welcome mortgage and protection specialist Alex Lynott to the Chesterton House team.
Alex is an experienced mortgage specialist who will be available to answer any questions you have and provide advice when it’s needed.
This service will not only be available to Chesterton House clients, but to your family, friends and colleagues, and will include:
Buy to let mortgages
Lifetime mortgages (often known as ‘equity release’)
Life and health insurance
If you need advice or know someone who does, please just let one of your Chesterton House team know or contact Alex directly on 01509 610472 or at email@example.com