Choosing the right mortgage is one of the most crucial decisions you will make when buying a property. Your choice will shape your financial future, so it’s essential to find a mortgage tailored to your specific needs, whether you’re planning to live in your new home or rent it out.Â
At Mortgage Knight, we understand that no two situations are alike, especially if you are self-employed or have unique financial circumstances. The key isn’t just finding a mortgage, but finding the right mortgage—and that’s exactly what we help you do.Â
With expert guidance and personalised advice, we ensure you secure a mortgage that fits your life, your plans, and your budget.
Understanding contractor mortgages might seem complex, but it’s straightforward once you break it down. While they operate like standard mortgages, where you borrow funds, make monthly payments, and repay over time, the details can get tricky. Interest rates, fees, and specialised mortgage options vary, and lenders assess affordability differently.
You repay both the capital and interest every month, ensuring that you own your home outright by the end of the term. This type of mortgage typically spans 20-30 years. It offers predictable monthly payments and clear long-term ownership.
Designed for purchasing properties that you intend to rent out rather than live in. These mortgages often have different criteria and interest rates compared to standard residential mortgages. They can provide a steady rental income and potential for property value growth.
You pay only the interest each month, with the capital repayment due at the end of the mortgage term. This option is considered high-risk and can be more challenging to secure. It’s important to have a clear plan for repaying the capital at the end of the term.
Tailored for those buying their first property, these mortgages often come with special benefits and potential government incentives. They can make the home-buying process more accessible and affordable. Ideal for those new to the property market.
Suitable for buyers with a small deposit, as low as 5% of the property’s value. These mortgages make homeownership more accessible for those with limited savings. They often come with higher interest rates to reflect the increased risk.
Allow you to adjust your monthly payments according to your financial situation. You can pay more when you can afford it or reduce payments if necessary. This flexibility can help you manage your finances more effectively.
Link your mortgage with your savings account, reducing the amount of interest you pay by offsetting the savings against the mortgage balance. This can lead to significant savings over the term of the mortgage. It offers a way to make your savings work harder for you.
Provide a lump sum of cash upon agreeing to the mortgage deal. This can be useful for covering additional costs or improving your new home. However, some cashback deals may have less attractive terms overall.
Feature variable interest rates with a cap on how high the rate can go. This offers protection from sharp rate increases while still benefiting from potentially lower rates. It provides a balance between stability and flexibility.
Offer a discount on the lender’s standard variable rate, which can result in lower initial payments. The discount is typically temporary, and rates may fluctuate after the initial period. Ideal for those looking to save on interest in the short term.
The interest rate tracks a specific benchmark, like the Bank of England base rate. Payments will rise or fall with changes in the benchmark rate. This can be advantageous when rates are low but may lead to higher payments if rates increase.
Feature interest rates that can change at the lender’s discretion. These mortgages often have fewer initial conditions but can lead to unpredictable payment amounts. They might not offer the long-term stability that some borrowers prefer.
Offer a stable interest rate for a set period, such as 2, 5, or 10 years. This guarantees consistent monthly payments and helps with budgeting. Ideal for those who value predictability and plan to stay in their home long-term.
Finding the right mortgage can be overwhelming with so many options and variables. That’s where Mortgage Knight steps in—offering expert guidance to simplify the process and match you with the perfect mortgage.Â
Our dedicated team ensures you understand every detail, from interest rates to repayment options, so you can make informed decisions with confidence. Trust us to turn the complexities of mortgage shopping into a smooth and successful journey towards home ownership.
