What’s the Right Mortgage for You?
All properties and all individual financial circumstances are different. There are a vast array of lenders. Because we specialise in mortgages and only mortgages, we will find the right mortgage with the right lender for your chosen property.
Among the hundreds of mortgages available, these are the main types of mortgages you might consider. All have their particular uses, so we will help you to make the right choice for your situation.
Basic variable rate mortgage
As the name implies, a no-frills mortgage with a lower rate, which generally means fewer features and less flexibility.
Standard variable rate mortgage
The most common mortgage, it offers the lender’s standard quoted rate. This may vary from time to time as financial markets fluctuate or interest rates change, so affecting the amount of your regular mortgage payments. This mortgage may offer added features such as an offset account, a redraw facility or a waived or discounted application fee.
Fixed interest mortgage
Many lenders offer the facility to fix your mortgage rate, generally for a period between 1 and 5 years. If you think rates are likely to rise, you can insulate yourself and ensure that your repayments don’t increase for the period you choose.
Split rate mortgage
A combination of variable and fixed rate. The fixed rate is for a specified period.
Here, you pay only the interest on the amount borrowed, usually for specified periods between 1 and 5 years. Investors who anticipate capital growth when a property is sold use this style of mortgage to pay off the principal when the sale is made.
Sometimes referred to as a “honeymoon” rate, this mortgage, aimed particularly at first home buyers, offers a cheap, discounted rate for an initial “honeymoon” period – usually 6 to 12 months, after which the rate reverts to the lender’s standard variable rate.
Line of credit mortgage
Also known as an equity loan, this allows you to access your equity in a property by using the property as collateral for the loan. You can usually access all or only some of your credit limit, on a come and go basis, and the interest is calculated only on the amount drawn down.
Designed for self-employed people, and so called because the lender waives the need for some of the proof-of-income documents normally needed to apply. A higher rate than a standard variable rate is usually charged. These mortgages are not as widely available as they once were.
Picket Fence Finance
The grass is greener on our side of the fence.
Your full financial needs and requirements need to be considered prior to any offer and acceptance of a loan product. The information contained in this page is general information only and does not take into consideration your requirements. Lender fees, charges and credit criteria will apply.