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Mortgages

Mortgages

Buying your first home can be a confusing and daunting task, and that’s why at Mutual Alliance Savings and Loans we are here to make the whole process a little easier by giving you the help you need, when it comes to getting the right mortgage and finding your way through the house buying processes..

How can we help?
We can help find the right mortgage for you. We even have a range of mortgage deals.

Mortgage Types Explained

Which mortgage is right for you?

At Mutual Alliance Savings and Loans we are committed to providing you with the best mortgage suited to your needs. This section contains information on the different types of mortgage products we offer so that you can make an informed choice. When you are ready to make your choice, or if you still need further advice then you can contact us.

Fixed Mortgages

With a fixed rate mortgage the interest rate you are charged remains the same for a set period of time. At the end of the set period, your mortgage transfers to Mutual Alliance Savings and Loans’s Standard Variable Rate which can go up or down with movements in interest rates.

What are the advantages?

a.Peace of mind of having fixed monthly payments for a set period of time.
You can often choose between different fixed periods from between 2 to 5 years. Sometimes we offer 7 and 10 year terms.
b.Interest is calculated daily not monthly or annually, which over the term of the mortgage will lead to interest savings.
c.If you move home you may be able to take your Fixed Rate with you.

What to bear in mind?

There will be an early repayment charge if you later decide to repay all or, in certain circumstances, part of your mortgage before the end of the fixed period or if you switch to one of our other interest rate options.

Repayment or interest only?

Repayment mortgages

How do they work?

Repayment mortgages involve a monthly payment covering the interest on the outstanding loan and a repayment of capital.

What are the main advantages?

a.imple and easy to understand.
b.Guarantees your loan will be repaid in full so long as you make each repayment when it is due.
c.Offers you a choice of repayment periods

What to bear in mind?

In the early years most of each payment will be interest, the majority of the capital will be paid off during the later years of the mortgage term.

Interest only mortgages

How do they work?

If you know you will be able to pay the whole mortgage outright in a few years time, then this is an option you may wish to consider. Interest-only mortgages mean paying only interest until you can make an outright payment on the capital from your own resources.

What is the main advantage?

There are lower monthly mortgage outgoings as you only pay interest on the loan.

What to bear in mind

You can normally borrow up to 85% of the property’s valuation
There’s no fund designed to repay the loan automatically, so you will have to pay back all the capital at the end of the agreed time from your own resources.