A mortgage is a form of borrowing used to purchase a property. A lender, typically a bank or building society, will lend you an amount of money based on the value of the property, known as the Loan-to-Value (LTV) ratio.
There are a wide range of different types of mortgages available.
In addition to standard mortgages, special types of mortgages available in the uk are:
The most suitable mortgage for you will depend on your personal circumstances. The best course of action is to speak to a qualifed professional.
Buy to let mortgages for used by landlords, who purchase the property and then let the property.
With buy to let mortgages, you have the option to not pay interest on the amount you borrow.
Typically, the maximum LTV ratio on buy-to-let mortgages is 75%. You must therefore find a deposit of at least 25% of the value of the property.
Offset mortgages are where your savings are offset against the amount you owe on your mortgage, thus reducing the interest you pay on your mortgage.
By lowering the interest charges, you can repay your mortgage quicker.
Offset mortgages are especially attractive to those individuals with a lot of savings, particularly when interest rates offered on savings are low, as the interest you save on your mortgage will be higher than the interest you would receive on your savings in a standard savings account.
At Mortgages Advice UK, we do not sell mortgage products directly, and therefore we retain our independence. We can present to you the independent facts about mortgage products, helping you to make an informed decision about which product suits your needs.
The information presented above and throughout this website are the personal opinions of the authors, and are not advice of any kind. You should seek independent advice from a qualified professional prior to committing to any mortgage arrangement. Failure to maintain the repayments on your mortgage may result in the repossession of your home.
Other websites: