Mortgage Types in the Uk


The Most Common Mortgage Types

If you live in the UK and want to buy a house, you will need a mortgage. At first it seems overwhelming but with a little information you can be prepared for one of the biggest decisions of your life.

Buy to Let Mortgage
Buy to let mortgages are intended to for people waning to let the house after you buy it. You can choose a capital and repayment or an interest only.

Capital and Interest Mortgages
This is the most common type of home loan. The house belongs to you after you pay it off, which normally takes about 25 years. You don’t end up paying about twice the price of the home in interest because the bank makes money off the interest.

Endowment Mortgage
This is similar to an interest only mortgage, except you pay money into an endowment linked to the house. The endowment pays off the capital at the end of the mortgage loan.

Capped Rate Mortgages
The interest in capped rate mortgages is still variable and will go up and down. The big difference is the interest is capped and will never go above the cap.

Discount Mortgages
This has a discount interest rate at the beginning but goes back to normal after a period of time.

Adverse credit Mortgages
This mortgage is for those with a bad credit rating.

Shared Ownership Mortgages
Also known as a right to buy, this is where a housing organization allows you to purchase a property at a discounted rate.

Flexible Mortgage
This type of mortgage can be great or horrible. Get some solid advice before choosing this one.

Interest Only Mortgages
Here, you pay the interest on the loan. Then at the end of the loan you must pay off the capital.

Fixed Rate Mortgages
The rate stays the same for a set amount of time before fluctuating.

Self Build Mortgages
This is done in stages as you buy and build on a property. However, the payments are still due even if you are behind schedule in building.

For Independent information about mortgages try this web site.

These are the most common kinds of mortgages. First, choose a couple that sounds like it would fit your situation. Then, armed with this information, do a little more research to determine exactly which mortgage is best for you.




Mortgages UK




Information on this page is the personal opinion of the author and should not be considered as advice of any kind.


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