The first step on the property ladder is understanding the various types of mortgages available
Independant
Mortgage Advice
Choosing a mortgage is a big task. There are so many options to choose from and it can be difficult to know which one is right for you. With our independent mortgage advice, we will help you find the most suitable mortgage type that suits your needs and future goals.
Types of Mortgages BMI Can Help With
Fixed Rate Mortgages
With fixed rate mortgage deals, you will pay the same amount for the length of the deal no matter what happens to the Bank of England base rate. The fixed part of the mortgage is often two or more years, and will automatically revert to the lenders standard variable rate at the end of this period.
Considerations
During the fixed rate period there may be financial penalties if you wish to leave or change deal. Towards the end of the fixed deal you should look for a new mortgage deal as the lenders standard variable rate is often much higher.
Advantages
Your monthly payment will remain the same, helping you to manage your finances.
Disadvantages
If variable rates fall, you will not benefit. Fixed rate mortgages often have slightly higher interest rates than variable mortgages.
Variable Rate Mortgages
The interest that you pay on your mortgage loan can change at any time. There are a number of variable rate mortgage deals: Discounted, Tracker, Capped or Offset.
Considerations
Make sure that you have some savings in place should the interest rate increase. You may be charged if you choose to leave a discounted or capped deal.
Advantages
You have the option to overpay, or leave at any time without penalty.
Disadvantages
The amount you pay each month can go up or down.
Discounted mortgages
Discounted mortgages offer a percentage discount off the lender’s standard variable rate (SVR) which will be applied for the first 2 or 3 years of the mortgage. Comparing discounted rates requires careful checking as you will need to consider both the SVR as well as the discount offered.
Considerations
You may be charged if you leave before the end of the discounted period. Banks can change their own SVR at any time, it does not mirror the Bank of England Base Rate
Advantages
Payments will be lower at the start of the mortgage term. If the lender cuts their standard variable rate (SVR) you will pay less.
Disadvantages
The lender may raise their interest rate at any time.
Tracker Mortgages
Tracker mortgages move in line with the Bank of England base rate rather than the bank’s standard variable rate. Tracker deals are calculated using the base rate plus a few set percent, so if the base rate goes up or down 0.25%, your payment will change by the exact same rate.
Tracker mortgage deals are typically 2 – 5 years before moving to the lenders own SVR, however some lenders offer tracker deals for the entire life of your mortgage.
Considerations
Check the small print of the deal. Some lenders may be able to change the rate offered at any time.
Advantages
If the BoE base rate falls, your mortgage repayments will fall.
Disadvantages
If the BoE base rate increases, your mortgage repayments will increase. You may have to pay an Early Repayment Charge should you leave before the deal period is over
Capped Mortgages
Capped mortgages move in-line with the lender’s standard variable rate (SVR), but will not increase above an agreed level (cap). The cap will be applied for the first 2 or 3 years of the mortgage before reverting to the lenders SVR.
Considerations
The cap tends to be set high so make sure you understand and can afford the maximum payment.
Advantages
Assurance that your payments will not increase above a set amount. If the lender reduces their standard variable rate (SVR) you will pay less.
Disadvantages
The lender may raise their SVR at any time up to the cap level.
Types of Mortgages BMI Can Help With
With fixed rate mortgage deals, you will pay the same amount for the length of the deal no matter what happens to the Bank of England base rate. The fixed part of the mortgage is often two or more years, and will automatically revert to the lenders standard variable rate at the end of this period.
Considerations
During the fixed rate period there may be financial penalties if you wish to leave or change deal. Towards the end of the fixed deal you should look for a new mortgage deal as the lenders standard variable rate is often much higher.
The interest that you pay on your mortgage loan can change at any time. There are a number of variable rate mortgage deals: Discounted, Tracker, Capped or Offset.
Considerations
Make sure that you have some savings in place should the interest rate increase. You may be charged if you choose to leave a discounted or capped deal.
Discounted mortgages offer a percentage discount off the lender’s standard variable rate (SVR) which will be applied for the first 2 or 3 years of the mortgage. Comparing discounted rates requires careful checking as you will need to consider both the SVR as well as the discount offered.
Considerations
You may be charged if you leave before the end of the discounted period. Banks can change their own SVR at any time, it does not mirror the Bank of England Base Rate.
Tracker mortgages move in line with the Bank of England base rate rather than the bank’s standard variable rate. Tracker deals are calculated using the base rate plus a few set percent, so if the base rate goes up or down 0.25%, your payment will change by the exact same rate.
Tracker mortgage deals are typically 2 – 5 years before moving to the lenders own SVR, however some lenders offer tracker deals for the entire life of your mortgage.
Considerations
Check the small print of the deal. Some lenders may be able to change the rate offered at any time.
Capped mortgages move in-line with the lender’s standard variable rate (SVR), but will not increase above an agreed level (cap). The cap will be applied for the first 2 or 3 years of the mortgage before reverting to the lenders SVR.
Considerations
The cap tends to be set high so make sure you understand and can afford the maximum payment.
a smart choice
Why Choose Bright Money Independent?
Over 21 years of experience working with BM Solutions
We handle everything – no forms, no waiting on hold
We speak human – plain-English advice and quick answers
No broker fees – we’re paid by the lender, not by you
FAQs
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Money
What types of mortgages does Bright Money Independent help apply for?
Bright Money Independent provides a range of mortgage services, including but not limited to:
First-time buyer mortgages
Buy-to-let mortgages
Let-to-buy mortgages
Remortgaging options
Equity release schemes
Our advisers search the whole market to find the most suitable deals tailored to individual circumstances.
What types of mortgage structures can BMI help with?
Bright Money Independent offers various mortgage products, including:
Fixed Rate Mortgages: Your interest rate remains the same for a set period, aiding in budgeting.
Variable Rate Mortgages: Interest rates can fluctuate, potentially affecting your monthly payments.
Discounted Mortgages: Offer a discount on the lender’s standard variable rate for an initial period.
Tracker Mortgages: Interest rates track the Bank of England base rate, plus a set percentage.
Capped Mortgages: Variable rates with an upper limit, providing some protection against rate increases.BMI Money
Each product has its advantages and considerations, and our advisers can help determine the best fit for your needs.
Can BMI help with First Time Buyer Mortgages?
Absolutely. Bright Money Independent offers tailored advice for first-time buyers, helping them navigate the mortgage process. We provide guidance on improving credit ratings, preparing necessary documentation, and understanding affordability to enhance the chances of securing a mortgage deal.
Can BMI access Buy-to-Let Mortgages?
Yes, we offer expertise in buy-to-let mortgages, assisting clients in understanding arrangement fees, interest rates, and lender criteria. We also provide guidance on let-to-buy options, where clients can let their existing property and purchase a new residential home.
What's the process for applying for a mortgage through BMI Money?
The typical process includes:
Initial Consultation: Discuss your needs and gather financial details.
Fact Find: Complete a comprehensive assessment of your financial situation.
Documentation: Provide necessary documents such as ID, proof of address, bank statements, and income verification.
Mortgage Search: Our advisers search the market for suitable mortgage options.
Application Submission: Submit the mortgage application to the chosen lender.
Ongoing Support: Receive guidance throughout the process until completion.
This structured approach ensures clients are well-supported at every stage.
Can BMI assist clients with complex income structures?
Yes, We specialise in helping clients with diverse financial situations, including:
Self-employed individuals
Contractors
Individuals with seasonal income
Those with poor credit ratings
Our advisers have access to specialised lenders to find suitable mortgage solutions for such clients.
Does BMI offer services nationally or only in Oxfordshire?
While based in Thame, Oxfordshire, Bright Money Independent serves clients across the UK. We offer consultations via phone, email, and face-to-face meetings, including evening and weekend appointments.
What do clients think about their experiences with Bright Money?
Clients have praised Bright Money Independent for our professionalism, responsiveness, and personalised service.
We have more than 520 5-star reviews from happy clients.
