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Originally Posted by bob_builder
Nationwide typically have near the lowest ongoing rates available in the UK.
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Which is probably why I am in the middle of switching my mortgage to them....
The other thing to consider is whether you get a repayment mortgage or an interest only one....
I am not sure whether the US/Canada have this option - but over here you can pay the lender Just the interest over the period of the loan, then pay off the lump sum at the end...
The old name for this was an endowment mortgage, because you took out an endowment policy to cover the actual cost.
The problem with this form is that if th stock matket performs badly, you may be left with insuffecient finds at the end of the investment period, and have to take out a further loan..
On the other hand, if the stock market performs well, you can end up with a lump sum big enough to pay of the mortgage, plus have some money to pay off other debts/have a holiday etc.
The interest only option is becoming less popular now, as the stock market is pretty poor, but during the 80s and 90s it was the most common form of mortgage, unfortunately some people are now finding out that they do not have enough to pay off the loan, and are re-mortgaging - meaning that they end up having a much longer mortgage and pay a huge amount of interest...
