Mortgage Guide

The mortgage world can be hard work, even if you are applying for a remortgage! Today’s mortgage market has products to suit the needs of nearly any borrower. Following are descriptions of some of the mortgage options offered:

Bad Credit Mortgages - For borrowers with adverse credit due to County Court Judgments, bankruptcy, defaults or unpaid credit cards, there are many non-standard mortgage options. Many lenders have options for borrowers with light to severe bad credit, albeit at higher interest rates.

Buy to Let Mortgages – Suited to amateur investors and seasoned landlords alike, a buy-to-let mortgage allows for the purchase of a rental property. Typically, buy-to-let mortgages levy a higher interest rate than residential mortgages to reflect their increased investment risk. The gross rent, or overall income from rent required by a lender can be as low as 100% at payrate.

First Time Buyer Mortgage – Borrowers who have never previously bought a home or have been without a mortgage for some time have a range of loan options. Depending on borrowing capacity, a first time buyer can secure a standard fixed, capped or variable rate mortgage. Those without the funds for a down payment may also be able to borrow up to 125% of the value of the property and avoid a deposit altogether. However some products can incur a Higher Lending Charge. Please note that the higher lending rate is the lenders way of rating the higher risk present.

Flexible Mortgages – Borrowers not on fixed incomes, such as freelancers and the self-employed, can opt for a flexible mortgage. Flexible mortgages allow the borrower to repay more or less per month according to their available funds.

Overseas Mortgages – Used to purchase property outside the country, overseas mortgages can be arranged through many UK brokers. As well, rather than taking a mortgage through a foreign financial institution, remortgaging a UK property can provide funds to purchase an overseas property.

Remortgage – Taking a new mortgage on the home can reduce interest payments or generate a lump sum for reinvestment. Many remortgage and put the saved income or extra borrowings toward new purchases, remodelling or other investments.

Second Mortgage – If there is available equity in a property, a second mortgage may be taken against its value. Second mortgages are suited to borrowers unable to take a new mortgage due to early completion penalties or other restrictions on their existing mortgage.

Self Build Mortgages – Also called stage payment mortgages, a self build mortgage is taken to finance the construction of a new home. Self build mortgages are specialised and often complex, so borrowers should seek out an appropriate lender or the aid of a broker.

Mortgage TypesGraduate MortgagesMortgages
Repayment MortgagesSelf Employed MortgagesRemortgages
Interest Only MortgagesShared Ownership MortgagesGreen Mortgages
Flexible MortgagesProfessional MortgagesSelf Build Mortgages
Endowment MortgagesKey Worker MortgagesOverseas Mortgages
First Time Buyer MortgagesIslamic MortgagesHome Insurance
How Much Can I Borrow?How To Survive Bad CreditMortgage Insurance
Who Are The Lenders?Check Your Credit RatingBad Credit Guide

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