If you’re buying your first home or wanting a better deal on your existing mortgage, then talk to Rosie Glasgow Home Loans. They’re the mortgage advisers who can find a deal that suits you and your circumstances.
There are many options you need to consider when taking out a new loan or refinancing an existing one and there are some easy ways to save money too. Below are loan structure options and as part of our service we can help work out which ones will best work for you.
The term of your loan will determine how much you have to pay. A longer term means that your repayments will be lower, but it will take longer to pay off. With a shorter term you’ll be debt-free sooner, but your repayments will be higher.
You can choose how you make your repayments depending on the type of loan you choose.
With a table loan, in the beginning your payments will pay off more of the interest, while later payments pay off more of the principle.
A reducing/straight line loan pays more of the principle so that interest repayments are reduced.
An interest only loan means you only pay the interest. Your repayments are lower but you aren’t reducing the loan at all.
Should you choose a fixed term or floating rate?
A fixed term rate will save you money if market rates go up. But if they go down, you might be better off with a variable term. For more on fixed and floating rates, check out this article: Understanding the Financial Jargon of Loans and Interest.
Your Personal Financial Situation
How you like to manage your money will affect the type of loan you choose. Regular payments will be easier with a fixed term mortgage, but if you like to make lump sum repayments, you might be better off with a floating rate. Consider your pay cycles, your budgeting skills and amount of surplus money you have each month – all of these can impact on how you structure your loans.
Your Current Situation vs Future Plans
You can adjust your loan depending on your circumstances as times change. You may be looking at doing renovations, so a lower repayment plan might free up some cash intially. Or perhaps you might be retiring in a few years and a reducing loan might be better. Having an idea of where you are now and where you might be in the future will make your decision easier.
Rosie Glasgow Home Loans are the experts in finding the right mortgage for you. They can even split your mortgage into several different loan types so that your requirements are well and truly taken care of.
It’s important to remember that choosing a plan doesn’t mean you’re stuck with it forever. Life changes and mortgage lenders need to be flexible. Rosie Glasgow understands this and can help – whether you’re a first time home buyer, or looking to refinance.
For more information, contact Rosie Glasgow Home Loans now.