Four steps to choosing a mortgage deal

There are four things to consider when choosing your mortgage:

• How do you want to repay what you've borrowed?
• How quickly do you want to repay your mortgage?
• What type of mortgage will suit you?
• What additional features are important to you?

For independent mortgage information visit the FSA website

1.  How do you want to repay what you've borrowed?
Choose between a repayment, interest-only or part and part mortgage:
Repayment
Your monthly payments are made up of both interest and capital, so your mortgage is gradually paid off over the mortgage term (as long as you make your mortgage payments when they are due).
Interest-only
You only pay interest to your lender throughout the mortgage term and your mortgage balance doesn't usually reduce. At the same time, you put money into a separate investment, such as an ISA, which should grow and pay off the mortgage at the end of its term.
You must make sure you keep premiums up to date on any investment product you take out to pay off your mortgage. Your Mortgage Adviser can provide you with more information about the options available but cannot give you advice on the most appropriate investments for you.
Part and Part
Is where you combine a repayment with an interest-only mortgage. So part of your mortgage would be repayment, and the remaining part would be interest-only.

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2.  How quickly do you want to repay your mortgage?
25 years is the standard term to repay most mortgages, but you may have the option to spread it over a maximum of 40 years (Just bear in mind that interest will be charged). This could help with budgeting early on and you could then reduce the term in the future.

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

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3 .  What type of mortgage will suit you?
You can choose from a fixed rate mortgage or a tracker rate mortgage.
Fixed rate mortgage

If you want complete peace of mind, a fixed rate could be for you. Quite simply, the interest rate you are charged stays the same for a set length of time.
Tracker rate mortgage
If you think interest rates will stay low or go even lower, a tracker rate could be perfect for you. Our tracker interest rates are linked to the Bank of England Bank Rate (also known as the Bank of England repo rate). Details of this rate can be found on the  Bank of England website  We charge you an amount above or below this rate. This means the rate can go up or down.

If you choose one of our tracker mortgage deals (not including stepped trackers) you have the option during the tracker rate period, to transfer all or part of your mortgage to one of our Halifax fixed rate mortgage products then available to existing Halifax mortgage customers, free of any early repayment charge which would otherwise apply on transfer.  All qualification criteria for the new fixed rate must be met.

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4.  What additional features are important to you?
While choosing a great rate is important, having a little flexibility can make a huge difference when it comes to managing your mortgage.
Will your mortgage let you...

• Overpay? 
• Underpay? 
• Take a payment holiday? 
• Change your repayment term? 
• Add any fees to your mortgage? 
• Have your interest worked out daily?

At Halifax, all these special features come as standard - regardless of the mortgage you choose.

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

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