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.
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