Types Of Mortgage Loans

A mortgage makes it possible for you to own your home. There are many types of mortgages available for you in the UK. Know the best type of mortgage you need to apply for to get the best deal that is right for you.

Repayment Mortgage

This is a type of mortgage where you repay a percentage of the capital that you have borrowed plus a percentage of the interest on the loan. They will enable you to build equity over time and own your home outright.

Interest-Only Mortgage

An interest-only mortgage requires that you pay the interest on the mortgage amount monthly without making any repayment towards the capital. However, you are expected to pay back the loan amount at the end of the mortgage period.

Fixed-Rate Mortgage

In this type of mortgage, the interest rate is fixed for a particular period and is not affected by Bank of England base rate rises or fluctuations in the property market. You will have to pay this fixed interest rate for a set time. You can’t opt out of the deal no matter the change of rates in the market.

Variable Rate Mortgage

This is a mortgage in which the interest rate is not fixed and can change at any time. There is no period where the rate is locked in, and your monthly payment amount varies. A variable-rate mortgage is affected by the Bank of England’s base interest rate and other factors.

Buy-To-Let Mortgage

This is a type of mortgage aimed at prospective landlords who want to purchase a property to rent out to others. The deposit and interest of this mortgage are higher than those of others, and you must have a good credit score and steady income.

There are different types of mortgage loans in the market, but these are the readily available ones. You can reach out for more information on how you can access these mortgage loans.

Popular Types Of Mortgage Loans

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