The UK mortgage guide - factors affecting choice of which UK mortgage
This UK mortgage guide covers some of the factors affecting choice of which UK mortgage to use. There are a great number of different types of mortgages out there to choose from. While this
choice means that the UK mortgage market has become very competitive which is good for the
customer, it can also make the whole prospect of choosing a mortgage very confusing.
Click on the links below under 'Mortgage type ' to get explanations of how they work,
the benefits, and the risks. Alternatively, click on one of the
links under 'Type of Borrower' to find out more about the factors which
may affect your choice and the types of mortgages which may be suitable.
Alternatively just fill out our online
enquiry form or call the telephone number shown and we will be happy to advise you on your UK mortgage.
Mortgage type
Type of Borrower
| Brief guide to First Time Buyer |
|
Factors affecting your choice - First Time Buyer
You probably don't have a lot of spare cash, and you may not
own much furniture and other household items. This
means that you would benefit from a lower rate of interest
in the first couple of years or so, or at least protection
from a rise in interest rates. You will need to find a
deposit (the more the better) and don't forget to budget for
all the other costs such as estate agents fees, solicitors
fees etc., which you will have to pay on completion.
The type of UK mortgage which may be suitable. |
| Capped Rate |
Cash Back |
Discounted Rate |
| Fixed Rate |
100% Mortgage
|
|
|
| Brief guide if you think Interest Rates may rise |
|
The factors affecting your choice - Interest Rates may Rise
If you believe that interest rates are going to rise,
then you will want to lock in the current low interest rate
for as long as possible, or at least make sure your mortgage
rate can't rise above a maximum level where you feel
comfortable that you can afford the payments.
The type of UK mortgage which may be suitable.
|
| Fixed Rate |
Capped Rate |
|
| Brief
guide if you think Interest Rates may fall |
|
The factors affecting your application - Interest Rates may Fall
If you think that interest rates are going to fall, then you want to make sure your mortgage rate falls by a similar
amount to ensure your payments are reduced.
The type of UK mortgage which may be suitable.
|
| Standard Variable
|
Base Rate Tracker |
|
| Brief
guide if you have problems with a Poor Credit Rating |
The factors affecting your choice - Poor Credit Rating
If you currently have problems with a poor credit rating through defaulting on a loan or
having a County Court Judgment ( CCJ ) awarded against you, you may have tried getting a
new mortgage from a High Street lender and been refused or you may be worried about
whether you will qualify for a mortgage.The type of UK mortgage which may be suitable.
|
|
Adverse Credit |
|
|
| Brief
guide if you find Budgeting difficult |
The factors affecting your choice - Budgeting
difficult
If you find Budgeting difficult then you need a mortgage
payment scheme where your payments are known form one month
to the next, irrespective of what happens to the base
interest rate.The type of UK mortgage which may be suitable.
|
| Fixed Rate |
Capped Rate |
|
| Brief
guide if you want to be Sure of Repaying mortgage |
The factors affecting your choice - Sure of Repaying mortgage
If you want to be sure that your mortgage will be repaid
then you need to make sure your mortgage payments are
designed to pay off the capital borrowed over the mortgage
term. You should avoid all investment related mortgages
where there is a risk that the capital may not be repaid.
The type of UK mortgage which may be suitable.
Most mortgage types listed would be suitable provided you choose to have a capital
repayment version rather than an interest only version. Do not use a mortgage which relies
on an investment to pay of the capital, such as an Endowment mortgage.
|
|
|
|
| Brief
guide if you want to release and use equity in your property. |
The factors affecting your choice - use equity
If your house has risen in value over the last few
years, you have value tied up which can't normally be
realised unless you sell the house. However, you could
consider re-mortgaging the house. This will mean taking
out a larger loan which will still be covered by the
property value, and maybe taken out over a new period
of time. If you do this you will have to choose
whether the new loan will be paid off to your original
schedule (in which case your new monthly payments will
be higher) or whether you 'reset the clock' and start
with a new 25 year mortgage, in which case you could
still be paying even as you approach retirement.
The type of UK mortgage which may be suitable.
|
|
Re-Mortgage
|
Mortgage Refinancing |
|
| Brief
guide if you have variable earnings |
The factors affecting your choice - variable earnings
You may be a business owner, contract worker, or carry out temporary
work where your earnings may only be guaranteed for short periods of time. In either case your earnings
maybe lumpy from one month to the next and difficult to predict with accuracy. In
this case you a mortgage where your annual earnings are taken into account rather than
requiring a steady monthly income. You may also want a system which allows you to pay
extra when you can afford it and possibly take a payment holiday occasionally if you are temporarily
between jobs.The type of UK mortgage which may be suitable.
|
|
Self Employed |
Self Certification |
|
Flexible |
|
|
