A stepped rate mortgage can be fixed or variable and the rate generally increases in steps. Initially, the interest rate for the first few months or first year is at its lowest and then increases in pre steps. Typically the stepped mortgage scheme last up to two to three years.
These mortgage schemes are attractive to new home borrowers. For example, first time buyers seeking extra initial expenses for redecorating or trainees whom are expecting increase in salaries in the coming years i.e. trainee accountants. Our mortgage brokers will be able to source and advise you the right deals based on your circumstances
If you require mortgage advice and you’re a first time buyer seeking a stepped rate mortgage, please get in touch. We have access to the mortgage market and will go through your mortgage options. Mortgage lenders are offering stepped rate mortgages, but you must consider the final rate and must fit within initial affordability assessments.