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What kind of mortgage term can I obtain?
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The length of your mortgage can be as short as 5 years or as long as 40 years, depending on the amount you borrow and the lender you are with. The more usual loan terms are between 25 and 30 years.
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Can I take my mortgage with me when I move?
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You can transfer your mortgage to your new property if a 'portable' mortgage is part of the agreed terms of your original mortgage contract and you will probably pay a fee to your lender to facilitate this. If you have a 'non-portable' mortgage you will need to pay off the existing loan and organise a new one for the new property. With this type of mortgage you may be required to pay an early redemption fee.
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Can I repay my mortgage early?
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Most lenders will let you pay early although you will probably have to pay a redemption charge to be able to do so. Penalties are most severe if you are still in an introductory period.
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Do I need mortgage payment protection?
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This isn't compulsory, but your mortgage is probably going to be the biggest financial commitment you are likely to have so it makes sense to protect your repayments in case things go wrong. There are many types of insurance available not only from banks but from independent insurers.
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Who is eligible for payment protection?
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Policies generally cover UK residents aged between 18 and 64 years who are employed for a minimum of 16 hours per. This also includes those who are self-employed.
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What if I want to change my repayment method?
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The terms and conditions of mortgage contracts vary with each lender but you may be able to change your method of repayment method although you will probably need to pay a fee. The lender will also want to know how you intend to pay the balance of the mortgage if you change to an interest only repayment.
