UK banks offer many different loan options. If you take the time and look into each option, you can choose the best one where regular payments are comfortable and overpayment over and above the value of the property is minimised. Some types of mortgages:
fixed rate – for the first few years the interest rate is fixed. After the expiry of this period, the bank automatically starts applying a floating interest rate, but there is a possibility to renegotiate the loan agreement and set a new fixed rate period;
floating interest – where the amount of the overpayment depends on the Bank of England’s refinancing rate;
offset mortgage – if the principal part of the loan is repaid with funds from the buyer’s bank account, then interest is charged only on the amount that remains to be repaid, which significantly reduces repayments;
with a threshold – the agreement defines an indicator above which the floating interest rate may not rise;
cash lending – some part of the loan is given in cash to the buyer of the property. This increases the interest rate, but provides funds for moving, renovating or buying furniture.
There are other forms of credit, and for more up-to-date and detailed information it is worth contacting a bank officer. They can help you assess your available capital, your upcoming expenses and help you choose the right type of mortgage. We recommend visiting several banks, familiarise yourself with the conditions in each, and then stop your choice on the best option. The main thing is not to hurry or delay, but to buy property in the UK while the conditions for such deals are the most favourable.