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Product Description
Variable Rate Mortgages
1. Standard Variable
Brief Description The interest rate on a variable rate mortgage goes up and down during the term of your mortgage, broadly in line with interest rates in the economy as a whole.
Features First-e’s mortgage interest rate will never be more than 1.5% higher than the base rate* - which means you have the security of knowing you'll always have a fair mortgage rate throughout your whole mortgage term.
First-e will only change interest rates at set times, leveling out any changes that have been made in rates
Suitability The variable rate mortgage may be suitable for you if:-
- You are happy for the amount you pay to vary with the increases and decreases in the interest rates
Fees £xxx valuation fee
Rates Our current variable rate is x.xx% (APR x.xx% per year variable)
Why don’t you start filling in an application form now?
2. Discounted Variable rate
Brief Description First-e Discounted Variable Rate Mortgage is designed to allow you to reduce your interest rate over a set time period.
This type of mortgage is set at our Standard Variable Rate, but we offer you a reduction on this rate for a set period of time
Our discounted variable interest rate is currently xx.xx%, That’s a reduction of xx% on our current lending rate
Features The interest rate on a variable rate mortgage goes up and down during the term of your mortgage, broadly in line with interest rates in the economy as a whole.
First-e’s mortgage interest rate will never be more than 1.5% higher than Bank's base rate* - which means you have the security of knowing you'll always have a fair mortgage rate throughout your whole mortgage term.
First-e will only change interest rates at set times, leveling out any changes that have been made in rates
This mortgage offers a discount on the variable rate for a limited period.
Once the discount has expired, the interest rate will go back to the normal variable rate.
Suitability The discounted variable rate mortgage may be suitable for you if:-
- You wish to reduce your mortgage repayments for a set period, but
- Are happy for this reduced repayment to vary with the increases and decreases in the interest rates
Fees £xxx valuation fee
Rates Our current variable rate is x.xx% (APR x.xx% per year variable)
Why don’t you start filling in an application form now?
Fixed Rate Mortgages
3. Fixed Rate Mortgages
Brief Description A fixed rate mortgage offers a fixed interest rate for a set period of time.
Your monthly repayments will therefore be fixed for this set period of time.
At the end of the fixed period, your mortgage will revert to the standard variable rate.
With first-e the interest rate you pay can be fixed for 1, 2, 3, or 5 years.
Features A fixed rate mortgage gives you a guaranteed rate of interest for an agreed period of time
It guarantees that the payments won't rise with a change in interest rates during the fixed period.
If interest rates fall, your mortgage payments will not be reduced during the fixed period
If the interest rates rise, your monthly mortgage repayments will not increase during the fixed period.
Suitability The fixed rate mortgage may be suitable for you if:-
- You plan to keep the property at least as long as the period you wish to set the interest rates for.
- You have a large mortgage, an increase in interest rates may cause a substantial increase in your monthly repayments
- You have a tight budget, and wish to fix your monthly repayment for a fixed period
- You feel that interest rates are set to rise
Fees £xxx valuation fee
Rates Our current variable rate is x.xx% (APR x.xx% per year variable)
Why don’t you start filling in an application form now?
Repayment Methods
Interest Only Mortgage
With an interest only mortgage, your monthly payment only pays off interest, resulting in a lower payments than a repayment mortgage . However, this means that at the end of the mortgage, it is up to you to pay off the amount borrowed. How you invest money to pay back the amount you borrow is essentially up to you. The way most people choose to do this is using a tax exempt saving method such as an endowment, pension or ISA. If these investments do not perform as planned, you may need to make extra payments in order to fully repay your mortgage at the end of the term.
If you are considering this sort of mortgage, it is best to seek advice on the investment from a professional, unless you are quite comfortable with the process already.
Advantages
Lowest monthly repayments
Allows you to invest funds as you please
Disadvantages
You need to arrange investments to pay off the loan capital
May need to increase payments if your investments to pay off the mortgage capital under-perform
Repayment Mortgage
With a repayment mortgage, your monthly payments are used to pay interest on your borrowings and repay the part of the amount you borrowed. As you repay the amount borrowed, your interest payments reduce, making your monthly repayments smaller. Provided you make all repayments on time, your mortgage will be fully repaid at the end of the term.
Advantages
Simple to understand
Fully pays off mortgage
Lower payments if rates fall
Disadvantages
Monthly repayments likely to be higher than interest only mortgage
Cannot invest to repay the mortgage as you please
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