A guide to the 15 different forms of mortgages available in the United Kingdom. From standard variable rate mortgages to more unusual mortgages like current account and self-certification mortgages, there’s something for everyone.If you’re looking for more tips, check it out.
1. Variable-rate mortgage
This is the most popular form of loan. Mortgage payments are determined by the SVR of the lender. The Bank of England Base Rate has a major impact on this.
2. Mortgage with a Fixed Rate
A fixed-rate mortgage with a term of 2-4 years and a fixed interest rate on mortgage payments. While there is a small fee for security, it prevents interest payments from being unaffordable.
3. Mortgage with a Limit
It’s similar to a fixed-rate mortgage. It specifies a maximum interest rate, but it is subject to change under some situations.
4. Mortgage with self-certification
A mortgage that does not require you to show your income by public records. Self-employed people also take this course.
5. Mortgage Repayment
A mortgage in which you pay both interest and capital repayments on the loan. The majority of mortgages are repaid mortgages. It means you would have paid off your mortgage debt at the end of your mortgage term.
6. An Interest-Only Loan
You just pay interest on the loan and do not have to repay any capital. To be able to pay off the mortgage capital at the end of the mortgage period, you’ll need a separate investment plan.
7. Mortgage for investment purposes.
A form of interest-only mortgage in which obtaining a mortgage often entails obtaining a complementary investment plan in order to repay the mortgage debt.
Endowment mortgages are the eighth form of mortgage.
A mortgage that is similar to an investment mortgage. In the United Kingdom, there were several issues with endowment mortgages because the investment was often insufficient to pay off debt.
9. Mortgage with a Base Rate Tracker
A variable rate mortgage is similar to this. This is a mortgage where the interest rate is set at a discount to the Bank of England Base Rate of 10%. 100 percent and 125 percent mortgages are available.
In most cases, a deposit of up to 10% of the purchase price is needed. However, as house prices rise, many lenders are now willing to lend the full sum. In certain cases, lenders may lend more than 100% to allow you to spend on the house itself.