Different Types of Mortgage Available


Hello Everyone, Today in this Article we will tell you about the Different Types of Mortgage Available If you talk about the Mortgage Loans There is lot of choice for you but You have to Choose the Best out of it Considering the Price and other factors keep in Mind.

Mortgage Working How They Work ?

The working of the Mortgage is basically same As, You borrow the Money to Purchase Property pay Interest over that Loan and Finally Return it but Eventually There is Lot of difference of Interest Rates, There are different ways to Repay that Taken Loan also There is Particular Mortgage which is purchase for Special or any Particular Situation and Different Mortgage have different Price over it. So, Now We talk about the Different Types of Mortgage available so Lets Move on That thing. 

Different Types of Mortgage Available

There are Various Types of Mortgage available in the Market so Here is the List of the Different Mortgage Types on the behalf of this You select Mortgage.

  • Repayment mortgages
  • Interest-only mortgages
  • Fixed rate mortgages
  • Variable rate mortgages
  • Tracker mortgages
  • Discounted rate mortgages
  • Capped rate mortgages
  • Cashback mortgages
  • Offset mortgages
  • 95% and 100% mortgages
  • Flexible mortgages
  • First time buyer mortgages
  • Buy to let mortgages
So, Lets Briefly Talk about the Following Mortgage : 

Repayment Mortgage : This is a Mortgage where you have to Repay the Loan with Interest over it As, Each month you have to pay some interest over it. At the end of the period, often 25 years, you'll have paid back everything you owe and you'll own your home outright. Your Mortgage remains with you and you have to repay that all Loan and Interest over it.

It is Good for the Buyers who wants to certain their house As, They can pay at the end of the Mortgage.

Interest Only Mortgage :  In This Mortgage you just have to pay the interest month by month retain their Mortgage and the capital at the end of that Period. It is different from Repayment Mortgage if we talk about Because at the end of the Loan period you have to find Money to repay the Debt. You could be lucky and find that your home has increased so much in price that the extra value is enough to remortgage and pay off the debt. If You find difficulties Later on wards on Interest Only Mortgage so you can change it to Repayment Mortgage. 

It is good for the Buyers who don't have enough money to pay more Interest but are also confident to pay all the Debt at the end of the Period. 

Fixed Rate Mortgage : Fixed Rate is very Popular Mortgage if we talk about for the New Mortgage Buyers as the Interest Rate Remain fixed for some particular Years As, You will be knowing about the Interest Rate as It will be fixed and not be changing. The Nagative Point of the Fixed Rate Mortgage is that If the Rates of the Mortgage goes down you will be Stuck with the Higher Interest Rates as you have the Fixed Rate Mortgage.

It is good for the Buyers who calculative and knows how much they have to give for that Particular Period of time. 

Variable Rate Mortgage : Every Lender have their Standard Variable Rate Mortgage As, It is Variable It goes ups and down because It is not fixed It depends on the Market Conditions. All It Depend on the Luck and the People who are involved in this business can have their words.

It is good for the Buyers who think that Rates of Mortgage will goes down and are Predictable according to the situation. 

Tracker Mortgage : Tracker Mortgage walk with the Tracker with them and Move in Nominal Interest rate. It is the actual Mortgage rate which you pay will be set as the Interest Rate and above or below the Base Rate. It is with base rate at 0.5% and an add-on rate of 1.5%, your mortgage rate will be 2%. 

It is for the Buyers who believe that Rates will goes down but at the Same time if the Rates go up They Must be having capability to afford the Rates of it. 

Discount Rate Mortgage : The Discount Rate is the reduction in the Lender's Standard Rate and It is the Cheapest Rate available in the Market. The Discount Rate Deals are available for a Particular period of time.

It is good for the Buyers who want low Interest Rates but can Later on afford at More Rate when It Goes Up. 

Crapped Rate Mortgage : It is the Rate where Buyers can Relax as They know that their repay will be their at some extent level after that It can not be rise.

It is good for the Buyers who Believe that In Future the Mortgage Rate will Rise. 

Cashback Mortgage : It is a Marketing Strategy plays by a Lender for Maximum sales and to offer good for Buyers where Buyers gets some amount of Cashback from the Lenders after Purchasing Mortgage and It Remains for the Particular period of time. 

It is good for the buyers who need a lump sum of money to help with moving house.

95% Mortgage : These are for people who can afford only a 5% deposit. With such a small deposit you are at risk of falling into negative equity if house prices go down - they need fall only 6% and suddenly your house is worth less than your mortgage.

Flexible mortgages : Flexible Mortgage give you the free and flexibility while paying the Mortgage and It makes and Opens Options for the Buyers in Mortgage 

It is good for the  buyers who suspect they will run into financial problems in future.

First Time Buyer Mortgage : It is for the Buyers who apply for the First Time As, They can apply for the Mortgage Listed from all the above and also help them the people who are struggling from it. 

Buy to Let Mortgages : It is for the People who want to Rent their Mortgage to live their life in certain way The Rent of that Particular Mortgage depends on the amount you borrow. The mortgage advisers know how complicated the mortgage market is and they're happy to answer any questions you have. They'll help you find the mortgage that suits you best. There's no obligation and no charge for our service. It's fee free.

So, This is the The Post on Different Types of Mortgage Available We Hope You Like This Article on Grabeveryday.

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