Mortgage IQ is a trading name of IQ Financial LLP. IQ Financial LLP is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Services Authority. Openwork Limited offer investment and insurance advice on products from a limited number of product providers and advice on mortgages representative of the whole market.

If you know what type of mortgage you require, then you have now reached the next stage of exploring the possible options within that choice.
Each option that we will discuss has its’ own unique advantages, and although some are more popular than others, it is important to chose the best option for your individual requirements.

Call our experienced team to discuss the options in further detail, we are more than happy to help you.

We reserve the right to charge a fee of £295 maximum or 0.5% of the loan amount, if greater and is payable on completion. Typically this will be £295.

FIXED RATE MORTGAGES

A fixed rate mortgage is a mortgage product that has a fixed interest rate for a set period of time. The fixed rate period varies, however the most common fixed rate periods offered are 2, 3 and 5 years. Here at mortgage IQ we provide a reminder service, calling you to arrange a remortgage before your fixed rate deal ends, preventing you from reverting to the higher rate.

With a fixed rate mortgage, whether interest rates happen to rise or fall, your monthly payments will not change; for this reason fixed rate mortgages are particularly popular amongst first time buyers or individuals on a tight budget. However, this peace of mind usually comes at a slight cost, with fixed interest rates being slightly higher than a variable rate. With this type of mortgage, you will not benefit should interest rates fall, but you will not be left short should they rise.

Talk to us to find the best value, fixed rate mortgage deal with Mortgage IQ- the broker you can bank on.

DISCOUNT

Discounted mortgages work in a similar way to tracker mortgages, in that both the interest rate can change during your mortgage term. However, unlike a tracker, a discounted rate doesn’t follow the base rate. Instead, as an initial incentive, it offers a discount on the lenders SVR (Standard Variable Rate) for a set period of time,which in turn is subject to changes as a result of changes in the Bank of England base rate. For example, a mortgage lender may offer a discount on its SVR Mortgage offer for 1 year, and supposing the SVR was 6% with 2% discount, this would make your mortgage rate 4% for the first year, and it may then revert to the SVR after this.

Discounted mortgages are good for people able to manage any fluctuations in their monthly repayments, because they will benefit from any interest rate reductions, whilst being able to cope with the financial implementations of an interest increase.

To find out if a discounted mortgage is right for you, call and talk to us for some friendly, impartial advise.

TRACKER

A tracker mortgage has an interest rate which follows (‘tracks’) the Bank of England (BOE) base Rate, rising and falling in line with interest rate changes. Unlike the discount rate mortgages, the Tracker rate mortgages drop out the middle man and track the BOE base rate directly. For example, a tracker rate may be set at 1% above the BOE base rate. Most tracker mortgages have a specified tracker period before returning to fixed or standard variable rates.

The benefit with this mortgage is that, should the base rate cut then you directly benefit with reduced mortgage payments, however some tracker mortgages have a set minimum interest rate, meaning that if the base rate falls below this you won’t see the benefit.
Call us now to talk to one of our friendly team about your current situation and what we can do to help you, we can help you decide if this is the best option for you.

FLEXIBLE

Flexible mortgages give you maximum control over your mortgage repayments. Deals vary from lender to lender, and with a whole of market choice, Mortgage IQ can source the very best Flexible Mortgage Deal for your own circumstances.

A Flexible mortgage allows you to vary your repayments to suit your personal situation. This gives the choice of making overpayments and underpayments, or even taking a break from making a mortgage repayment (payment holiday). For instance, if you have an irregular income or receive bonuses then you may wish to consider this type of mortgage, as the option to make overpayments is available, allowing you to repay your mortgage quicker if you wish. By paying your mortgage off earlier than intended will save you a lot of money in interest repayments, and as the interest rate for this type of mortgage is usually calculated daily then you will see the immediate impact of your overpayments. The beauty of this type of mortgage is that it then allows you to borrow back those overpayments, should you need to.

Call us for a chat with one of our friendly and experienced advisers; we can help you decide if this option is best for you.

REPAYMENT MORTGAGE

Although there are many different types of mortgage schemes and deals available, there are only 2 available ways of repaying back your mortgage.

Here we will explain the Repayment Mortgage; also known as capital and interest mortgage- your monthly repayments pay off the interest accrued on the mortgage loan that month, along with some of the capital. This method is the only option that ensures your mortgage is paid off by the end of the mortgage term (assuming you keep your monthly repayments).

Initially most of the repayments will be used to pay interest since the capital amount outstanding is at its highest value. Therefore over the first few years the capital will not reduce very much. However as the years pass, bigger proportions of the monthly repayments will be used for reducing the capital until towards the end of the term when the large proportion will be paying off capital and a small proportion paying interest. What this means for you as a customer, it that your first few annual mortgage statements may look as though you haven’t paid much off your mortgage, but in the following years you will notice a much greater difference.

If you decide that you wish to repay your mortgage this way, our friendly advisers at Mortgage IQ will calculate the minimum term your monthly budget will allow you to take the mortgage over. Most mortgage lenders will offer their full range of products to borrowers regardless of the term over which they choose to take the debt – for example, the best two-year fixed rates will be available whether you want to pay over 25 years or 40 years.

Here at Mortgage IQ, we understand that the whole mortgage process can be confusing, so give us a call and we will happily answer all your questions, we are here to help you make the right decision.

INTEREST ONLY MORTGAGE

The Interest Only Mortgage is one of the two types of mortgages available for repaying your mortgage. As the name suggests, with an interest-only mortgage your repayments only cover the interest on the mortgage amount and do not repay any of the underlying loan capital.

Accompanying the interest only mortgage, you will need a separate long term repayment strategy to ensure that in the future you can pay off the mortgage still owed on the property. This could be an investment plan, which comes in one of three forms; an ISA (individual savings plan), a pension or an endowment. This investment does not have to be provided by the mortgage lender. We would like to remind you that with all investments there is an associated risk that the sum provided on maturity may not meet the liability.

Interest only mortgages can also be changed to a repayment mortgage in the future. This is becoming increasingly popular with first time buyers who usually find it hard initially to afford the mortgage payments of a Repayment Mortgage.
It is important to get advice in this area to ensure that an interest only mortgage is the right option for you, so give us a call and we will share our expertise with you.

CURRENT ACCOUNT MORTGAGE

A current account mortgage combines all your finances into one single account - your mortgage, current bank account, savings, personal loans and credit cards debt.
Any unspent income you have in your account at the end of the month is automatically used to reduce the outstanding balance on your mortgage. Rather than have a separate savings account, any surplus that you would normally save into a separate account in effect goes directly to reducing the total mortgage debt and immediately reduces the amount of interest charged at the end of the month. You also avoid paying the tax, which you would have been liable for if you were putting your earnings into an interest /bank account because, technically, you are not earning interest.

These accounts typically allow you to overpay or underpay each month, so you have full control over your spending. If you choose to save some months and spend more in other months, this is not normally a problem. The ultimate aim is simply that the mortgage will be repaid before the borrower retires.

You get a current account cheque book, so you can withdraw cash and spend money like any other bank account. The only rule is that the maximum agreed borrowing limit is not exceeded and the lender will normally expect your salary to be paid direct into the account each month.

Current account mortgages may not necessarily be for everyone, as they can charge higher rates of interest when compared to other types of mortgage. However, for those with savings or an amount of surplus income, they can provide a faster and cheaper way of paying off a large mortgage.

For information and advice on current account mortgages, please call and talk with one of our friendly advisers.

Your home may be repossessed if you do not keep up repayments on your mortgage.