5 Bridge

When it comes to getting a mortgage there are many options available to you, you need to make sure you understand how each one works in order to get the best deal. The most common are fixed rate mortgages, these are when you take a free mortgage calculator to see how much you are eligible to take out, the interest is set at a fixed cost which you will pay throughout the time of your loan.

Another popular mortgage is the adjustable rate mortgage, this is where the interest rate fluctuates depending on the market. You can use a mortgage payment calculator to get a general idea of how much you will be paying on a monthly basis.

You can also get an interest only mortgage, this is where you only pay the interest for a set amount of time. After this you begin to pay the mortgage off month by month, in your interest only months you are allowed to make payments towards to full amount which will reduce it once you have finished your agreed time frame.

These are ideal for people who don’t plan on keeping the property a long time as you can sell it before the rates increase. There are always risks to ensure that you can repay the instalments each month to avoid damaging your credit score.

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