Standard variable rate – This is the lenders variable rate, and they have the right to change it at their discretion. In practice rates tend to move in relation to funding costs, changes in the Bank of England Base Rate and competition in the market. As the rate rises and falls, so will your mortgage payments.

Discounted rate – The rate remains variable, as above. However, as an incentive, you will be offered a discount off the standard variable rate for an agreed period, after which the rate charged usually, reverts to the lender’s standard variable rate, which could be higher than the rate chargeable at the outset.

Fixed rate – The lender will fix the rate of interest on your mortgage for a set period of time. During this fixed period your payments will remain the same, helping you to budget. After the fixed period, the rate charged usually reverts to the Lender’s standard variable rate, which could be higher than the rate chargeable at the outset.

Capped rate – The lender will cap the rate charged for a set period of time Should the lender’s standard variable rate go above this capped figure, you will pay no more than the agreed capped rate. Should the rate fall below your capped rate then you will pay the reduced amount, until either the rate rises again or the set capped period ends. This provides you with the similar security of a fixed rate, in that you have a maximum interest you can pay, but also has the added advantage that you could pay less if rates fall. After the capped period, the rate charged usually reverts to the lenders standard variable rate, which could be higher than the rate chargeable at the outset.

Tracker rate – This method of repayment is directly linked to changes in the Bank of England Base Rate. Tracker rates are set at a certain percentage above, or below Bank of England Base Rate and this percentage difference is fixed – e.g., if the Bank of England Base Rate rises or falls by 0.25%, your Tracker Mortgage rises or falls by 0.25% also. They can sometimes be arranged on a fixed, discounted or variable basis.

Remortgages can be used for various reasons. However, most people simply switch mortgages because it will work out cheaper for them. For example, the introductory discounted interest rate may have finished with your current lender; therefore you could potentially get a new discount rate, or a lower APR, with another lender. Another example is when you may need to re-mortgage to raise funds for home improvements.

It is worth noting that a remortgage is not the best option in all cases. Even if the lender you are considering switching to is offering a lower APR, you must take into consideration the facts that:

• The new lender may charge you for valuation and solicitors fees, even if you have already paid these for your mortgage with your current lender.
• If you switch mortgage remember to look at the overall repayment period. You may be able to pay less monthly, but check the final repayment date of the mortgage as well.

Also you may be able to switch your mortgage deal with your current lender, avoiding any unnecessary costs. Many lenders will allow you to switch your mortgage deal reasonably frequently.

You may have to pay an early repayment charge to your existing lender if you re-mortgage before your current product has expired. Here at KT Partnership we will review your existing mortgage to ensure you do not incur any unnecessary charges.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. CONSOLIDATING DEBT MAY REDUCE YOUR OUTGOINGS NOW, BUT YOU MAY END UP PAYING MORE OVERALL. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

• Interest rates on Buy to Let mortgages tend to be higher
• The minimum deposit for a Buy to Let mortgage is usually a quarter (25%) of the property’s value (some lenders offer deals with a 20% deposit, others want 40% deposit)
• The fees tend to be much higher

Most Buy to Let mortgages are interest only, which means you don’t pay anything off the lump sum borrowed each month, but of course, at the end of the mortgage term you will repay the capital in full. Most Buy to Let mortgages are not regulated by the Financial Conduct Authority (FCA).

When buying a second property to let, you will need to decide whether your primary objective is income or capital growth. In other words, are you looking to make profit month on month or are looking to make a profit through increased equity from the second property if it increases in value over time? The decision may affect the type of property and purchase, and the location.

When you are choosing a property to let, it is wise to take advice from local letting agents to determine; what types of properties are in need and which parts of the town are best or most wanted. The can tell you if there is a University in the town, and if students are looking for somewhere to live.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR PROPERTY. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

Our typical fee is £499 and is usually payable when we receive your mortgage offer. The precise amount will depend on your circumstances and the complexity of the mortgage proposition. If you choose to proceed with our recommendation and the mortgage goes ahead, we will also be paid commission from the lender for arranging the mortgage on your behalf.

Bear in mind however, that lenders have different ways of calculating the amount they are willing to lend so a mortgage calculator will only give an indication of the maximum you’ll be able to borrow.

When it comes to monthly repayments, it is not only the rate of interest that affects the amount you pay: the term of the loan also makes a difference. The longer the term, the lower your monthly payments will be. However, while opting for a long term may appear a cheaper option it will cost you more in total because of the extra interest you will pay.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender. You should make an appointment to receive mortgage advice which will based on your needs and circumstances.