Choosing an appropriate mortgage product.

16 September 2008
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As an impartial adviser our role is to advise you both on an appropriate lender and on a product to meet your needs .As lenders offer different product mixes and lending levels we work to match your needs with the best available product. Matters to consider in regard to product choice include:

*Your attitude to you want certainty over repayments?

*Future interest rate expectations.....We will advise you on our view of future interest rates to assist in deciding whether to go fixed or variable.

*Your current and expected cash flow.....What repayments are you comfortable with? What term is appropriate? Do you expect to have cash available for early settlement

Fixed rate mortgages

A fixed rate mortgage guarantees the mortgage rate you will pay for the term of the fixed period.

For example a five year fixed rate guarantees that the mortgage rate you are paying will not change during the five year period.

Fixed rate prices are determined by the markets expectation of future interest rates.

It is important to check what follow on rate is built into a mortgage agreement where a fixed rate is taken out.

You should not enter a fixed rate for a term greater than the period over which you expect to hold the property.

Most fixed rates contain penalty clauses for early settlement .

Discounted mortgages

Some lenders offer special mortgage rates for the first year of the mortgage. It is important that you look beyond.