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Decision Finance Mortgages
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Whatever your financial
situation and need, Decision Finance endeavours to help you
secure funding. We work with the leading providers for each
financial product and provide you relevant, free quotes, most of
them instantly.
Decision Finance offer a range of Commercial and Buy to Let
Mortgages. Apply online for a quote from over 200 lending
schemes. |
There are two interest rate options for you to
consider
 | Fixed Rate:
With a fixed rate the interest rate (i.e.
the percentage) applied to the outstanding
principal remains constant through out a
predetermined period that may or may not
equal the length of your mortgage.
The interest rate is set at the beginning of
your mortgage by examining the risk involved
and the current market rates. The advantage
of a fixed rate loan is that your interest
rate is fixed and will not rise if the
market rate rises. The disadvantage is that
you will not benefit from any reduction of
the market rate.
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| Variable Interest
Rate: With a
variable interest rate the interest rate
applied on the outstanding principal
fluctuates from in line with changes to the
Bank Base Rate or LIBOR and, as a result, so
will the amount of your payments.
The interest rate for each period will be
the current market rate plus a predetermined
premium that remains constant throughout the
life of your mortgage. Generally, you can
initially get a lower interest rate on
variable interest rate than on a fixed rate
mortgage.
The advantage of an adjustable interest rate
mortgage is that you save money when the
market rate decreases. The disadvantage is
that you are not protected from an increase
in the market rate and the interest rate you
pay will increase with the market rate.
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When deciding on your repayment
schedule you should always remember the longer
you take to payback the principal the higher
your total interest payment will be.
| "Equal" Payments:
Probably the most common schedule, this type
of mortgage requires you to pay the same
amount each period (monthly or quarterly)
for a specified number of periods. Part of
each payment covers the interest and the
rest reduces the principal.
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| "Equal" Payment and a
Final Balloon Payment:
This type of mortgage requires you to make
equal monthly payments of principal and
interest for a relatively short period of
time.
After you make the last instalment payment,
you must pay the balance in one payment,
called a balloon payment. Some lenders will
give you the option to refinance the
mortgage to help you stretch out the final
balloon payment.
This type of mortgage offers definite
benefits to you. Because of the lower
monthly payments during the course of the
mortgage, you can keep more cash available
for other needs. Of course, when you are
thinking about those nice low payments,
don't forget the big balloon payment waiting
around the corner.
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| Interest-Only Payments
and a Final Balloon Payment:
With this type of mortgage, your regular
payments cover only interest. The principal
stays the same. At the end of the mortgage
term, you must make a balloon payment to
cover the entire principal and any remaining
interest.
The obvious advantage of this arrangement is
the low periodic payments. But over the long
term, you will pay more interest because you
are not reducing the principal sum on which
you pay interest
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| Endowment Mortgage:
This type of mortgage is similar to an
interest-only mortgage but the repayment of
the principal comes from the proceeds of an
endowment.
Several types of endowments are eligible for
this type of mortgage, they include: life
assurance policy, personal or executive
pension plan policy, or a personal equity
plan.
The additional security provided by the
endowment usually result in a lower interest
rate. |
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Decision Finance Mortgages
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