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Mortgages for first time buyers

Discount Rate Mortgage Deals

Discount rate mortgages are a type of variable interest rate where a discount is applied on a specific interest rate – usually the lender’s SVR (Standard variable rate). Depending on your specific deal, the discount can be applied for two, three or five years.

Some lenders offer a lifetime discounted rate which lasts for the entirety of your mortgage.

Because discount rate mortgages are a type of variable interest rate, your payments could go up or down, depending on the lender’s SVR. Once the discount ends, you’ll more than likely be placed on the lender’s SVR.

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Everything you
need to know…

What are the pros and cons of discount rate mortgages?

Many buyers are attracted to discount rate mortgages because they have the term “discount” in their title. And whilst they have some perks, there are some drawbacks too.

One of the benefits of having a discount rate mortgage is that when interest rates are low, your monthly payments will be lower. The flipside is that your payments could rise if interest rates rise. Some lenders also have an interest rate collar which means your monthly payments can only go so low.

Discount rate mortgage arrangement fees can often be less compared to other types of deals. But something else to consider is that discount rate mortgages often come with an Early Repayment Charge, which will come into effect if you pay off your mortgage early or remortgage with another lender during the introductory period.

Are discount rate mortgage the best value?

This really depends on every person’s individual set of circumstances. The term “discount” sounds like a great deal but that doesn’t mean that they are in fact the cheapest deal on the market. Because discounted mortgages have variable rates, they don’t offer the same payment security as say a fixed rate mortgage. So what seems like a good deal to begin with may not be in 3-5 years. That’s why it is so important to speak to a professional mortgage adviser before you commit to a rate.

Thinking of remortgaging?

Remortgaging allows you to switch provider or mortgage products to save you money and to suit the changing requirements of your lifestyle.

Before remortgaging, or before you decide to remortgage with your existing provider, it is essential to speak with an independent mortgage expert.

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Mortgage
types

Mortgage Calculators

Our online mortgage calculators have been designed to help you with the most common mortgage questions such as ‘how much can I borrow?’ and ‘how much will it cost?’

To get a more accurate idea we recommend that you speak to one of our expert mortgage advisers.

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Fixed rate

A fixed rate mortgage charges a set rate of interest for a predetermined period. Once this period is over, the interest rate usually revers to the lender’s Standard Variable Rate (SVR).

Tracker

Trackers are a type of variable rate mortgage which see interest rates rising and falling based on the Bank of England’s base rate. However, unlike traditional variable rate mortgages, a tracker mortgage doesn’t have to match the Bank of England’s rate exactly. Instead, the rate the borrower is charged is likely to be a little above the base rate.

Offset

An offset mortgage links the borrower’s savings to their mortgage balance. By choosing an offset mortgage, homeowners can reduce the amount of interest charged and potentially pay off the mortgage sooner.

Cashback

A cashback mortgage pays the borrower an upfront lump sum. This can enable them to pay for a costly expense such as home furnishings, a car or university tuition fees. The rate paid tends to be based on the bank's Standard Variable Rate (SVR).

Discount rate

A discount rate mortgage offers borrowers a reduction on the lender’s Standard Variable Rate (SVR) for a set period of time. The rate can fluctuate and so although the borrower will repay less than the SVR, their repayments could rise or fall.

Variable rate

A variable rate mortgage sees the interest owed rise or fall depending on the base rates set by the bank. When the base rate is low, borrowers may benefit from extremely low mortgage repayments. However, if the base rate increases, so too will the amount borrowers are expected to pay in interest.

Interest only

When a homeowner has an interest only mortgage, they won’t pay traditional mortgage payments each month. Instead, they’ll only repay the interest that is due. At the end of the mortgage term, the homeowner will be expected to pay the property’s value in full.

Capped rate

A capped rate mortgage offers similar security to a fixed rate mortgage. The rate payable will be capped for the duration of an agreed upon period of time. During this time, the rate may rise or fall in line with market fluctuations, but it will never exceed the capped rate.

As a result, a capped rate mortgage enables borrowers to benefit from falling rates without placing strain on their budget as a result of unaffordable increases.

Why choose
us?

We compare over 70 lenders

We compare over 70 lenders to ensure you get the very best mortgage deal suited to your lifestyle. We’ve been around for a long time and we know the mortgage providers inside out.

WITH YOU EVERY STEP OF THE WAY

We offer a personal concierge service so you will meet us face to face. Our expert mortgage advisors will provide you with all the information you need to make an informed decision.

There are no hidden fees

You will never pay more than 1.95% of the mortgage balance. Our average fee is 1% and the minimum fee you will pay is £1295.

We make it quick and easy

We can get you a mortgage in as little as two weeks. We’ll help you fill out all of the forms and will never put you forward for anything you are not likely to be accepted for.

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Emma Richards

Having recently used Taylormade Finance for remortgaging our rental property. From start to end we found Dean extremely professional, knowledgeable and helpful. From meeting Dean in our own home up to the week before completion, Dean kept us well informed and was always happy to take a call from us if needed. Dean gave us advice and options that we had time to consider and this helped with a much smoother process. Thanks again for all your help and look forward to speaking to you again in the future with any further financial assistance.

23.11.2023

Michaela Turner

We have been dealing with Richard from TaylorMade Finance for a good number of years now. Ever since our very first meeting with him, we knew we had chosen the right company. Friendly, professional, and just excellent service every time. Richard took the time to get to know us and understand our needs from day one, and he's done the same with every review we have had. We highly recommend TaylorMade Finance as your go to mortgage advisor. Thank you Richard and the rest of the TaylorMade team

07.08.2023

What's your
situation?

First time buyers

Buying your first home can be a major life milestone. With so much to consider, saving and searching for your first home can also be a daunting process. Thankfully, TaylorMade are here to help you. Whether you’d like to know how much of a deposit you’ll need or how much you can borrow, we can answer all your burning questions.

Buying a second property

Buying a second property can be an extremely exciting process. Whether you’re still paying off the mortgage on your home or you own it outright, we’ll help you find the most affordable mortgage for your second property.

Remortgaging

Remortgaging can be a great way to save money each month, reduce your mortgage term and free up cash for some of life’s greatest adventures. With our help you can learn everything there is to know about remortgaging.

Buy to let

Whether you’re looking to expand an existing rental property portfolio or you’re becoming a landlord for the first time, you’ll need a buy-to-let mortgage. We’ll guide you through the process and help you find a mortgage that enables you to maximise your investment returns.

Self Employed

Obtaining a mortgage when you’re self employed may seem challenging, but with our help you can gain access to the loan you need to purchase your ideal home. We’ll walk you through the whole process from the initial affordability check right through to completion.

Buying a new build

Buying a new build home can be a great option for anyone looking to invest in their future. Whether you’re a first time buyer, a home mover, or a buy-to-let investor, we’ll help you assess your finance options and secure a great mortgage deal on your new property.
Talk to the experts

Talk to the experts

With access to the entire mortgage market, the team at TaylorMade can help you find the most suitable mortgage product for your situation.

Whether you’re a first time buyer, a self employed small business owner or a buy-to-let investor, our mortgage experts can help you get a great deal.

To learn more about our service, please get in touch with one of our expert advisers.

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Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

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TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.

Complaints:

In the event that you wish to complain, you can contact us by email, telephone or letter.

Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Email: complaint.info@financial-ombudsman.org.uk
Phone: 0800 0234 567

Your mortgage will be secured against your property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1.95% of the mortgage amount, subject to a minimum fee of £1,295 and an overall maximum fee of £2,995 payable on completion.