Drop Lock Mortgages

The mortgage market is currently a minefield - you don't need us to tell you that.  Should you take one of the best fixed rate mortgages or should you plump for one of the best tracker rate mortgages?  Will Bank rate move up quickly or will it take a more subdued path?  Choices, choices...

The simply truth is that no-one really knows what the future of the mortgage market looks like. There are wildly contrasting views presented daily in the media and confusion reigns supreme.  

What we do know is that tracker rate mortgages are priced lower than fixed rate mortgages, so if Bank rate was to stay still you would be better off with a tracker.  Yet, we know that this is simply not going to happen.  It is about when it rises and how quickly.

Many years ago John Charcol designed and launched the drop lock mortgage to give our clients the best of both worlds.  Right now, it looks like being the product of choice for many.  The drop lock mortgage is pretty simple.  You take a tracker rate mortgage - thus benefiting from a low rate - but you have the option to switch into a fixed rate mortgage at any time, penalty free.  Another description would be the "have your cake and eat it" mortgage.

As ever, the product may not be right for some people, but is certainly one of a number of potential mortgage solutions that borrowers need to consider now.

So, if you simply cannot decide whether to take that fixed rate mortgage or that tracker, perhaps you can take a bit of both...

Speak to one of our consultants completely obligation free by calling.  It could be just the ticket...

Terms & conditions

Your initial mortgage consultation is obligation free. There will be a minimum fee for our mortgage service of £450, of which £150 is payable when you apply, and we will retain the commission from the mortgage lender. Alternatively, you can choose the fee only option which is typically 0.65% of the amount borrowed. The precise amount will depend on your circumstances and mortgage loan amount, and will be discussed and agreed before you make a mortgage application.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT

Legals

John Charcol is a trading style of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority; our registration number is 147692. John Charcol Associates LLP is an appointed representative of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority.  Registered office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Registered in England No: 02292688.  This mortgage site is only directed at persons within the UK.   The FSA does not regulate some investment mortgage contracts.  Calls may be recorded for training and monitoring. Max call charge from a BT landline is 3.9p per minute. Calls from other networks may vary.