David Lewis Mortgage Services, 138 Moulsham Street, Chelmsford, Essex. CM2 0JT Tel:01245 267511 Fax:01245 267544 THE EASIEST WAY TO FIND THE BEST MORTGAGE FOR YOU IS TO TALK TO DAVID LEWIS MORTGAGE SERVICES WHO WILL LOOK AT YOUR INDIVIDUAL CIRCUMSTANCES AND RECOMMEND THE MOST SUITABLE MORTGAGE FOR YOU.
Fixed Rate MortgageThe rate at which interest is charged on your mortgage is fixed for an agreed period of time, normally between 1 and 5 years but longer periods are available. Many people find this type of mortgage easy to work out their monthly budget as the monthly repayment is fixed. In most cases the lender will charge a penalty if you try to come out of a fixed rate mortgage before the end of the fixed rate term as well as an arrangement fee or booking fee to the lender when applying for a fixed rate mortgage.
Why a fixed rate mortgage?
It offers easy budgeting because the exact monthly cost is known. You are protected from interest rate increases during the period of the fix.
Points to remember: There can be redemption penalties and arrangement fees to pay. If interest rates fall during the fixed period, you do not benefit from this. Discounted Mortgage
A reduction is given from the lender's normal standard variable interest rate for a period of normally one to five years. You normally expect to pay a penalty if you wish to change during the discount period and some lenders charge an arrangement fee. Why decide on a discounted rate mortgage? It offers a saving over the standard variable rate. Should interest rates fall, you benefit from reduction in interest rates. Remember however that - There may be redemption penalties if you wish to leave the scheme before the agreed period. If interest rates should rise then your payments will increase making budgeting more difficult.
Tracker Mortgage
A tracker rate is an interest rate that tracks the Bank of England base rate. The rate is normally above the base rate and would rise or fall in line with Bank of England rate changes.
A tracker rate mortgage can be arranged for a set period of time, normally between 1 to 5 years.
You would normally pay a penalty if you wish to change your mortgage whilst within a tracker period. An arrangment fee may be payable to the lender for this type of mortgage.
Remember. The lowest interest rate is not always the best mortgage.
There are many other things to consider when comparing a mortgage:-
What are the arrangement fees?
How is interest charged?
How long are you tied with the lender to receive the quoted interest rates?
What are the exit fees?
To find out exactly what your mortgage costs will be, including any valuation fees and setup fees, please call us to make an appointment. No fees or charges are payable for an initial consultation where charges will be expalined to you without obligation. We are authorised and regulated by the Financial Services Authority. FSA Reg No:300229 | 
