The Variations of Mortgages

 

 

There are 15 kinds of mortgages that are offered in the United Kingdom. From the standard variable rate mortgage to non-traditional mortgages like the self-certification and current account mortgages.

 

1.            Standard variable mortgages - this is the very common kind of mortgage. The payments would rely on the lenders. This is typically influenced by the England Bank Base Rate.

 

2.            Fixed rate mortgages - this is a mortgage that has a period of at least two to four years wherein the interest rates on mortgage payments are fixed. There might be some premiums for the security, but it prevents interest payments to become unaffordable.

 

3.            Capped mortgages - this is like the fixed rate mortgages. It tells you about the maximum interest rate but it could fall under several circumstances.

 

4.            Self-certification mortgages - this is the type of mortgage wherein there's no need to prove your overall income by means of the published accounts. This is usually taken by the self-employed individuals. Check this link to know more!

 

5.            Repayment mortgages - this is the type of mortgage wherein you are required to pay both the loan's interest and the capital repayments. Majority of the mortgages are the repayment mortgages. It signifies that at the end of the mortgage, you would have already paid your debt in it. Be sure to get assistance here!

 

6.            Interest only mortgages - this mortgage is where you would only pay the loan's interest and do not have to repay the capital. This needs a separated business plan in order for you to pay off the mortgage's capital at the end of its term. Know more facts about mortgage, visit http://www.ehow.com/how-does_4565081_a-mortgage-work.html.

 

7.            Investment mortgages - this is a kind of interest-only mortgage but this involves the removing of the complementary investment plans for you to be able to pay the total mortgage debt.

 

8.            Endowment mortgages - this is just the same with the investment mortgages. There were a lot of problems with the endowments mortgages in the United Kingdom mainly because most often the investments failed to pay the debt.

 

9.            Base rate tracker mortgages - this is just the same with the standard variable rate mortgages. This is the type of mortgage wherein the interest rates are fixed up to the particular discount in contrast to the England Bank Base Rate.

 

10.          125% and 100% mortgages - typically it is needed to pay the deposit for up to 10% of the price of the property. But, with the ever-increasing prices of houses, majority of the lenders are already providing mortgages for the whole amount. In several instances, the lender would offer a greater than 100% to permit spending on the property itself.