What types of Mortgages and Loans does Coutts & Co. offer?
We offer the following different types of Mortgages:
With a fixed rate mortgage, the interest rate remains the same for a set period of time. This means that your mortgage payment would be the same amount every month during that period.
A tracker mortgage is a type of variable rate mortgage where the interest rate tracks another rate such as the Coutts Bank Base Rate at a set margin above or below the that rate.
House Mortgage Rate
Our House Mortgage Rate (“HMR”) is a type of variable rate mortgage. When a fixed or tracker rate ends, you would automatically be transferred onto our HMR.
We offer the following different types of Loans:
Base Rate Loan
With a Base Rate Loan, the interest rate is set as a margin above the Coutts Bank Base Rate.
Fixed Rate Loan
With a Fixed Rate Loan, the interest rate is fixed at the outset using a margin above the cost of funds on the day of completion.
A Bridging Loan can help clients to buy their next property pending the sale of their existing property.
With a LIBOR Loan, the interest rate is set as a margin above the 3, 6 or 12 month GBP LIBOR reference rate.
We offer both Capital and Interest and Interest Only Mortgages and Loans. Mortgages can be paid back on a monthly basis and loans can be paid back on a monthly, quarterly, bi-annual or annual basis depending on the product.
A Capital and Interest Mortgage/Loan means that your agreed payments will pay back both the capital borrowed and interest on the capital borrowed. This means that as long as you keep making your agreed payments you will not owe the bank any money at the end of the term.
An Interest Only Mortgage/Loan means that your agreed payments will only pay back the interest on the capital borrowed. You will still owe the full amount at the end of the term.
If any part of your Mortgage/Loan is an Interest Only facility, it is entirely your responsibility to make sure the financial arrangements which you have chosen to repay the capital is/are suitable and maintained throughout the term.
Any shortfall at the end of the Mortgage/Loan term is your responsibility and if you cannot repay the Mortgage/Loan at the end of the term, you could lose your home.