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Mortgage Quest is a wholly independent mortgage broker. That means we can approach any lender on your behalf for any type of mortgage.
Here are the types of mortgages clients ask us for most often. Click through to a detailed overview of each. Or scroll past the boxes for an overview of these mortgages, plus other terminology that will help you navigate your mortgage enquiry.
First-time buyer
All the help you need to get onto the property ladder. Our expert advisors walk you through the mortgage process from application to completion.
Buy-to-let
Access competitive buy-to-let mortgage rates, or use our rental calculator to work out the minimum rent required for your investment property.
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First-time buyers
First-time buyer mortgages are designed to enable people who’ve never owned a home before to buy their first property. These mortgages typically have lower deposit requirements than traditional mortgages, and some lenders may offer special deals to first-time buyers.
Buying your first home can be a daunting experience, but it’s also a very exciting one. By investing the time to plan and prepare upfront, you can make the process as smooth as possible. Read more…
Remortgage (and Product Transfer)
A remortgage is the process of switching your existing mortgage to a new one, either with a different lender or your current lender (product transfer).
Remortgaging can be a good way to save money on a new rate or to release equity from your property. But it’s important to weigh up the pros and cons carefully before making a decision.
Do get advice from a financial advisor to help you choose the right remortgage or product transfer. Your current situation and future aspirations will heavily weigh on which is the best option for you. Read more…
Home mover
A homemover mortgage is for people who want to move from their existing home to a new one. Borrowers typically use homemover mortgages to buy that new home, whilst simultaneously paying off the mortgage on their existing home.
They’re available from most lenders, with many different options available. For example, some lenders offer homemover mortgages with no early repayment charges. But others offer deals with lower interest rates for borrowers with a good credit rating. Read more…
Buy-to-let
Buy-to-Let mortgages are for people buying a property to rent out to tenants, i.e. landlords. Most landlords choose an ‘interest only‘ mechanism to pay off the mortgage on the rented residence.
Buy-to-Let mortgages typically have higher interest rates than residential mortgages. The deposit lenders require is also often much higher than that for a residential mortgage. Read more…
Specialist mortgages
There are many other types of mortgages available to borrowers who don’t fit the traditional PAYE mould, such as:
- Bad credit
- Company directors
- Contractor mortgages
- Doctors and locums
- Guarantor mortgages
- Self-employed mortgages
- Shared ownership mortgages
- Many more
These types of mortgages can help people who may have had difficulty getting a traditional mortgage. Rest assured, it’s not always your fault. Often, it’s that lenders can’t see your true mortgage affordability. That’s when using a broker is essential! Read more…
If we’ve not listed the mortgage you want here, don’t panic. Call us to discuss your requirements.
Methods of mortgage repayment
Once you decide which mortgage is right for you, you’ll need to choose a method of repayment. We list simple explanations of the most popular repayment methods here.
We go into more depth about the different types of repayment methods in this ‘Mortgage Types’ guide.
n.b. not all repayment methods may be available for the type of mortgage you choose.
Fixed-rate mortgage
With fixed-rate mortgages, your lender offers you an introductory interest rate fixed for a set period of time, typically 2, 3, or 5 years. This means that your monthly repayments will stay the same, regardless of what happens to interest rates in the wider market.
Tracker mortgage
Tracker mortgage interest rates are linked to a base rate, such as the Bank of England’s base rate. This means that your monthly repayments will go up or down if the base rate changes.
Variable rate (SVR) mortgage
Each lender sets its own Standard Variable Rate. This means your interest rate can go up or down at any time. Variable-rate mortgages can be riskier than fixed-rate or tracker mortgages. But they’ll occasionally be cheaper than your fixed rate, especially if the base rate drops considerably over a short period.
Discount mortgage
Your interest rate is set at a discount to the lender’s standard variable rate (SVR). Borrowers typically fix this discount for a set period of time, typically 2, 3, or 5 years. After the discount period ends, your interest rate will revert to the lender’s SVR.
Offset mortgage:
Offset mortgages are linked to your savings account. The lender will ‘offset’ the balance of your savings account against the outstanding balance of your mortgage, which reduces the amount of interest you pay.
Interest-only mortgage
An interest-only mortgage is where the borrower only pays the interest on the loan, and nothing off the capital. This means that the borrower’s monthly repayments will be lower than on a repayment mortgage. But the total amount they owe their lender won’t reduce over time.
At the end of the mortgage term, the borrower will need to repay the capital amount in full. The borrower can achieve this by:
- Selling the property
- Switching to a repayment mortgage, or
- Making a lump sum payment derived from a separate savings plan
Before a lender considers you for an interest-only mortgage, they will check that your savings plan is fit for purpose.
Interest-only mortgages can be a good option for people who need to keep their monthly mortgage repayments low. This could mean people who are self-employed or who have other financial commitments. However, it’s important to remember that the borrower will still need to repay the capital amount in full at the end of the term.
Get expert advice to help you make the right choices
Which type of mortgage and how you repay it are right for you will depend on your individual circumstances. It’s important to understand the different mortgage options available to you.
If you’re struggling to make a decision (believe me, you’re not alone!), you may want to get advice from an experienced financial advisor or brokerage.
