Mortgages
Also Read - Getting on the Property Ladder | Mortgage Conveyancing | Mortgage Protection
Are you looking to become a homeowner and require a mortgage? Do you want information on the process of property buying? Or, do you want a mortgage but have problem credit?
What is a Mortgage
A mortgage is a loan repaid over a long term and is used exclusively to
purchase property, the loan is usually secured upon the property it is
being used to buy. The term of the mortgage is the period over which the
loan is taken out and repaid.
Many mortgages come established with a 25 year term however other
lengths of term may be available or more suitable.
Types of Mortgage - Which one Suits You ?
There are 3 basic types of mortgage, these are repayment mortgages, interest only mortgages and flexible mortgages.
- Repayment Mortgage pays off both the amount borrowed and any interest accrued.
- Interest Only Mortgages, you only pay off the interest on the loan. The original amount remains the same and investments are planned to repay this.
- Flexible Mortgages give the borrower the ability to fluctuate payments, subject to the lenders conditions.
All the other types of mortgage available are essentially variations on these 3, with the differences used to entice customers. The variations between the different mortgages is basically how and at what rate, the interest is charged.
Full range of UK Mortgages:
100% Mortgages | Buy to Let Mortgages | Capped Rate Mortgages | Discounted Rate Mortgages | Endowment Mortgages | First Time Buyer Mortgages | Fixed Rate Mortgages | Flexible Mortgages | Interest Only Mortgages | ISA Mortgages | Non Status Mortgages | Self Build Mortgages | Self Certification Mortgages | Self Employed Mortgages | Tracker Mortgages | Variable Rate Mortgages
Mortgage Interest Rates - Mortgage Repayment Size.
The rate of interest charged on a mortgage is tied into the base
interest rate. The base rate is set by the Bank of England and can alter
quite regularly. Any changes to the rate are announced by the Bank of
England's Monetary Policy Committee, which meets monthly. This is then
the standard base interest rate used for most financial products
including UK mortgages.
A mortgage lender will then add their interest rate on the top of this,
which is their charge for lending the mortgage loan to their customers.
How the interest rate fluctuations effect mortgage repayments depends on
what sort of mortgage individual customers have and if the lenders pass
any changes on.
