Other features

As well as having one of the above interest rate features, mortgages often offer a number of other options, which can help you make the decision on what is best for you and your circumstances.

Flexible mortgages

A flexible mortgage allows you to vary your monthly repayments. Depending on the flexibility of the particular mortgage, you can, without charge:

  • Make over or underpayments each month (e.g. you know you will have high expenses in June, so choose to underpay that month).
  • Make a lump sum repayment (e.g. if you receive a bonus and decide to put it all into the mortgage).
  • Take a payment 'holiday' (you might want to pay for a car or a holiday and need to take a break from your mortgage payments for a while).

The flexibility is conditional - usually you have to follow (or exceed) a predetermined repayment schedule.

TOP TIP: Look out for a mortgage which may not officially be "flexible" but still allows the ability to make overpayments.

Cashback mortgages

A cashback mortgage pays out an upfront lump sum when the mortgage is taken out. This sum can then by used to pay, for example, for home furnishings or pay off a credit card debt.

Pros

You get cash just when you need it, at a relatively competitive rate compared to most credit cards or other short-term loans.

Cons

If you do take out a cashback mortgage you will often find that the interest rate is the lender's standard variable rate - the disadvantage of the cashback is the lack of flexibility or competitiveness on the interest rate.

Droplock mortgages

A droplock mortgage is a discount or tracker mortgage, which has an option to switch to a fixed rate at any point within the initial discount or tracker period without paying any early repayment charges.

This provides an ideal way to benefit from base rates when they're low, with the option to switch easily to the protection of a fixed rate should interest rates look set to rise significantly.

Offset mortgages

Like current account mortgages, offset products allow you to offset the balance of your mortgage against any funds in a savings and/or current account held with the same lender, and pay interest (calculated on a daily basis) on the net balance between the accounts.

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.