What is a Mortgage?
A mortgage is a long term loan that enables people to buy their home. If you look the word “Mortgage” up in a dictionary it means a debit that is secured against the value of the property. This means that when the property is sold the lender has first charge (or in Scotland , a standard security) – and must be paid first. With your home as security, the lender is usually able to offer you a lower interest rate than you find with other types of loan.
What types of mortgages are there?
There are hundreds of mortgages on the UK market. We have broken them down into the product categories below, simply click on a name to find out more:
|
Capped Rate
A capped rate mortgage guarantees that your monthly payments cannot rise above a certain amount. (click the title to find out more)
|
|
|
Fixed rate
With a fixed rate mortgage you pay the same interest rate for an agreed amount of time. (click the title to find out more)
|
|
|
Discounted rate
A discounted rate mortgage offers a reduction of a given amount on the standard variable rate. (click the title to find out more)
|
|
|
Flexible Mortgages
A flexible mortgage allows you overpay or underpay.
(click the title to find out more)
|
|
|
Cashback Mortgage
Some lenders offer cashback mortgages where you receive a percentage of the loan shortly after completing on your purchase.
(click the title to find out more)
|
|
|
Offset Mortgage
With offset mortgages, your savings are used to pay off your mortgage.(click the title to find out more)
|
|
|
Tracker Mortgage
The tracker mortgage has a variable interest rate, which shadows the movement of the Bank of England Base Rate (click the title to find out more)
|
|
|
Interest Only Mortgage
Your monthly payments to the lender cover only the interest on the loan.
The full amount of the loan has to be repaid to the lender at the end of the term.
(click the title to find out more)
|
|
|
Self-certification mortgage
Self-certification or a self-cert mortgage is a way of detailing your income without having to provide proof of income. (click the title to find out more)
|
|
|
100% Mortgage
A 100% mortgage is designed to cover the full value of the property, without the need to raise a deposit. (click the title to find out more)
|
|
|
Combination Mortgage – Part and Part
With a combined mortgage a proportion of the loan is treated as an interest only mortgage and the remainder as a repayment mortgage. (click the title to find out more)
|
|
|
Buy to let Mortgages
This is a mortgage for property you want to buy and then let out for rent. (click the title to find out more)
|
However if you want some immediate advise of the most suitable product for your circumstances please contact us on 0800 279 8000 and ask to speak to a Lifetime adviser.
Remember that we have access to the whole of the market and our advice is unbiased and independent. We work for YOU not the lender.
*Not allBuy to Let Mortgages are not regulated by the Financial Services Authority.
We are authorised and regulated by the FSA (Financial Services Authority). Our FSA registration number is 448415.
WARNING: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. There may be a fee for our service. This will be no more than 1.5% of the loan. The precise amount will depend on your circumstances but we estimate this will be £149.
Lifetime is a trading name of Lifetime Financial Management Ltd which is authorised and regulated by the Financial Services Authority for advising on and arranging mortgages and insurance.
Lifetime Financial Management Ltd, registered in England and Wales, registered Number 3652194. Registered address: 1st Floor, City Gate, 17 Victoria Street, St Albans, Herts, AL1 3JJ. Director: Paul Merrigan.
|
|
Confused by all the key terms?
No problem, click here to find out more, or hover over underlined words.
|
|
