There are right-to-buy mortgages UK with fixed repayments and those that vary in line with the Bank of England Base Rate (BEBR)
Here is a simple guide to the different types of interest rates associated with right-to-buy mortgages UK available in the UK:
Variable rate: companies usually change their Standard Variable Rate (SVR) in line with the BEBR.
TIP: A right-to-buy mortgages UK company's SVR is high, which is activated after your initial low rate offer period is over.
Fixed rate: If you need your payments to stay at a fixed amount for a set period of time, usually two years, these types of right-to-buy mortgages UK are set for a short initial period, and usually revert to the company's SVR.
TIP: Some companies offer long-term fixed rates. If, however, rates were to drop very low indeed, you would miss out on big savings. There are also Early Repayment Charges (ERC) that tie you in.
If you think it's at all likely you'll want to change after a couple of years, avoid the latter.
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We offer a high standard of service and advice. Our right-to-buy mortgages UK are available to suit your financial needs:-
- Payment holiday.
TIP: Don't take out a Mortgage Indemnity Guarantee (MIG) - MIGs are now usually only charged on loans of 75-90% to value. A MIG is a one-off payment made to the company that protects them if you fail to keep up your repayments and your property is repossessed. If you can avoid paying for one, do, it will save you money.
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TIP: When interest rates fall: Try and leave your repayments the same as prior to the rate drop. This means you will actually be paying more than the minimum each month. You'll repay your loan years sooner. Check whether your mortgage company has pre-payment penalties.
The more rates fall, the sooner you will repay your loan. You will have been paying at the higher rate, so if rates rise again later you may not have to change your repayment.
TIP: Pay fortnightly instead of monthly. Many people get paid weekly or fortnightly, so have the right-to-buy mortgages UK payment come out of your account around the same time you get paid. You'll be less likely to miss the money. You will actually save money and pay your right-to-buy mortgages UK off sooner. Divide the monthly payment by two or four and pay that each week or fortnight. BUT, this only works if your right-to-buy mortgages UK company calculates the outstanding amount week to week.
TIP: Only pay up-front fees to well-known or highly recommended companies. While most companies are reputable, it is always best to be cautious.
Because of the down payment requirement frequently individuals find right-to-buy mortgages UK difficult. Although, with a little bit of research right-to-buy mortgages UK can be found that do not require such a high deposit.
In order to give you their best right-to-buy mortgages UK, the company you apply to will need at least your:
- Address (with post code);
- Time at that address;
- Employment (how long in your current job);
- Amount you want to borrow;
- If you have a bank account (and how long you've had it).
You may have to get used to the idea of getting cold calls from other right-to-buy mortgages UK companies for weeks or months afterwards. Try to stop this by telling the initial company "Please do not sell or pass my personal info. on to other companies. Thank you."
Don't be afraid to ask for what you want. You just might be surprised and be approved for the perfect right-to-buy mortgages UK for you.