Interest rates available from lender will vary according to the deposit available,
type of deal chosen, arrangement fee and credit status. Typically, the rate
will range between 5% and 6.5% for people with a good credit history. When choosing
a mortgage do not base your decision on the interest rate alone as other factors,
particularly fees, will dictate the overall competitiveness of any mortgage.
Interest Only Method
Your payment to the lender is only interest. Your mortgage will not
reduce. You must have plans to repay the whole of the mortgage at the
end of years
Stamp Duty
Payable ONLY on house purchases (not remortgages or further advances).
The amount you pay depends on the purchase price. Some parts of the
UK considered disadvantaged areas benefit from a reduction
You may also have to pay stamp duty where there is a transfer of
equity (e.g. divorce situations)
Repayment Method
Your payment to the lender will include two elements; (1) interest,
and (2) capital. Your mortgage is gradually paid off over
years.
Calculator: Capital & Interest and Interest Only
Calculator
