Financial Services, Exeter-based team
Understand the different loan types to help you choose the right mortgage for you.
Dom Beer and Chris Beer
When it comes to personal finance, few decisions hold as much significance and long-term impact as choosing the right mortgage. Whether you are a first-time buyer or a seasoned property investor, understanding the various mortgage types available to you is crucial in making informed financial decisions.
From fixed-rate mortgages to adjustable-rate mortgages, interest-only loans to government-backed options, the mortgage landscape offers a range of choices tailored to fit diverse needs and circumstances.
Fixed Rate Mortgage
With a fixed-rate mortgage, your interest rate remains constant for a specified period, usually two to five years or longer. This offers stability as your monthly repayments will remain the same during the fixed period, regardless of changes in interest rates.
Tracker Mortgage
A tracker mortgage is linked to the Bank of England's base rate or another specified interest rate. The interest rate on your mortgage will rise and fall in line with the chosen rate, typically with a fixed percentage above or below it.
Offset Mortgage
An offset mortgage allows you to link your savings or current account balances to your mortgage. The money held in these accounts is offset against your mortgage balance, reducing the amount of interest you pay. You can access your savings if needed but reducing the balance will increase your interest payments.
Repayment Mortgage
A repayment mortgage involves regular monthly repayments that cover both the interest and a portion of the capital. Over time, your outstanding mortgage balance decreases until it is fully repaid at the end of the term.
Variable Rate Mortgage
In a variable rate mortgage, the interest rate can fluctuate throughout the loan term. It can be tied to the Bank of England's base rate or the lender's standard variable rate (SVR). Your monthly repayments may change if the interest rate changes.
Discount Mortgage
A discount mortgage offers a reduced interest rate for a specific period, typically a few years. The discounted rate is a set percentage below the lender's SVR. After the discount period ends, the interest rate typically reverts to the SVR.
Interest-Only Mortgage
With an interest-only mortgage, your monthly repayments cover only the interest charges, not the capital. At the end of the mortgage term, you'll need a separate plan to repay the capital, such as an investment or savings vehicle.
Buy-to-Let Mortgage
If you're purchasing a property to rent it out, you'll need a buy-to-let mortgage. These mortgages usually require a larger deposit and have different lending criteria compared to residential mortgages. Rental income typically covers the monthly repayments, and you may also benefit from capital appreciation.
Get started today
Whether you aspire to purchase your dream home, refinance your existing mortgage, or explore investment opportunities in real estate, our team is ready to provide their professional financial services.
Over the years, our mortgage advisors have helped hundreds of people across Devon in areas such as Exeter, Exmouth, Newton Abbot, Sidmouth, Ottery St Mary and Cranbrook to name but a few.
Get in touch with our team to find out how we can help you.
About Beerstone
Beerstone Financial Services was established in 1996 by Chris Beer, our Founding Director, who still plays a key role in the company and ensures we maintain the best service.
Latest Posts
Explore some of our latest posts and useful insights for industry experts.
Beerstone Financial Services was established in 1996 by Chris Beer, our Director, who still oversees the company and ensures we maintain the best service.
In total we have over 30 years of experience in financial services working in a range of environments so you can be sure that your situation is in experienced hands.
Speak to our team
Visit our offices: 2 Southernhay West, Exeter, EX1 1JG
Beerstone Financial Services Ltd (542704) is an Appointed Representative of BrokerSync Ltd, which is authorised and regulated by the Financial Conduct Authority (1031981).
There may be a fee for Mortgage Advice. The precise amount will depend upon your circumstances and will be agreed upon following your initial meeting.
Investments, Pensions, Wills, Trusts, PMI and Estate Planning will be referred to our authorised third-party providers. Beerstone Financial Services Ltd and BrokerSync Ltd are not responsible for any advice received from the third-party providers.
Investments, Pensions, Wills, Trusts, PMI and Estate Planning will be referred to our authorised third-party providers. ABC Ltd and BrokerSync Ltd are not responsible for any advice received from the third-party providers.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Conveyancing, Wills, and some forms of Buy-to-let Mortgages and Commercial Mortgages are not regulated by the Financial Conduct Authority.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured against it.'