There is a wide variety of mortgage products available on the market at present, which is why it is so difficult to decide which is the most suitable for you and your finances.

The main types of mortgage are the variable rate and the fixed rate product. There are various types of variable rate mortgage as well as a range of fixed rate products. As this can often be confusing, you may want to seek advice from a professional who has taken CeMAP training and is fully qualified.

If you have a relatively restricted household budget that leaves very little room for any extras, you may want to consider a fixed rate mortgage. This will mean that you can have a monthly budget which will change very little, as you will know exactly how much your monthly mortgage payment will be. This generally tends to be your largest monthly payment.

There are different rates for different fixed periods. However, you may face a lower interest rate but have a greater arrangement fee to pay, which may work out more expensive than the higher interest rate.

If you have a little money to spare each month and can afford to pay a little more if needs be, you may want to consider a variable rate. However, this rate may increase quite sharply, with several rate increases over a short period of time, leaving you with extra money to find each month. Consult with a mortgage adviser to ensure you choose the most suitable mortgage.

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