A guide to 15 different mortgage forms that are on offer in the UK.From traditional variable mortgages to more unusual mortgages such as current account and mortgages for self-certification 1. Standard hypothecary element The most common type of mortgage. Mortgage payments are dependent on SVR lenders. Currently that is affected by the base rate of the Bank of England. Island Coast Mortgage Cape Coral
- Fixed rate mortgage A mortgage with a 2-4 year term in which the interest rate on mortgage payments is set. Protection may have a slight premium but it prevents interest payments from becoming un economic.
- Capped hypothecaryThis is like a fixed mortgage. It notes a maximum rate of interest but may fall under certain circumstances.
- Self CertificationHypothecary A mortgage where there is no need to prove your income through published accounts. Often taken on by self-employed people.
- Mortgage repayment A mortgage where you pay both interest on the loan and repayments on debt. Many mortgages are mortgage repayments. This means you’ll have paid off your mortgage debt by the end of your mortgage term.
- Interest Only Loan Mortgage where only interest on debt is paid and no money is repaid. This requires a separate investment plan to allow the mortgage capital to be paid out at the end of the mortgage term 7. Investment Hypothec.
A form of interest on mortgage only, but where a mortgage is taken out also includes drawing up a supplementary investment plan to be able to pay off the mortgage debt.
- Endowment Mortgages Similar to mortgage on savings. There have been many endowment mortgage issues in the UK, because often the investment has not been sufficient to pay off debt.
- Base rate tracker mortgage Similar to a hypothetical variable rate contract. This is a mortgage where interest rate is set at a certain discount relative to base rate 10 of the Bank of England. 100 per cent and 125 per cent mortgages A deposit of up to 10 per cent of the house price is usually required. Nonetheless, several lenders are now providing a mortgage for the full amount with rising house prices. In some cases, lenders pay more than 100 per cent to allow the house itself to spend.
- 11. Joint mortgage A Joint mortgage involves buying a house with others to increase the likelihood of securing a mortgage. Often known as mortgage purchase co.
- 12. Adverse Credit Mortgages Aid for mortgage applicants with bad credit scores 13. The Never Ending Mortgage A modern and quite small form of mortgage where there is simply no need to pay off the mortgage. You can instead move your mortgage on to your grandchildren.
14.14. Reverse mortgage This is where you can earn income from your house’s value in exchange for the lender who earns an increasing share of your house’s value.
15.15. Buy to Let Mortgages It includes receiving a mortgage to purchase a house with the specific intention to rent it out. These mortgages rely more on the state of the housing market