There are Many Types of Mortgages in UK
But there is only one that’s right for you
The number of different types of mortgages in UK is quite staggering. Gone are the days of mortgage loans being available only to those with sizable funds as a deposit. Nowadays there are mortgages available to people with very diverse financial backgrounds.
One of the most popular mortgages in UK today is the variable mortgage, whereby mortgage repayments change according to fluctuations in the rate of interest applied.
Here is a list of 10 of the most popular types of mortgages in UK, and what they entail:
- Variable Mortgage – Mortgage re-payments vary in accordance with changes in interest rate
- Fixed Rate Mortgage – Interest rates are fixed for a set period of time
- Capped Mortgage – Similar to a fixed rate mortgage with a fixed maximum interest rate that does not exceed the cap amount
- Tracker Rate Mortgage – Tracker rate mortgage follow the Bank of England’s base rate at an agreed differential
- Interest Only Mortgage – Mortgage where only the interest and no capital is paid
- Joint Mortgage – A mortgage in joint names where both parties are responsible for the repayments
- Adverse Credit Mortgages – Special type of mortgage for people with bad credit ratings
- Buy to Let Mortgages – Mortgages for people looking to buy a property with a view to let
- Equity Release Mortgages – Mortgage that release funds from the value of the property
- 100% Mortgages– Mortgage whereby the full cost of the property is borrowed so there is deposit payable
At the Mortgage Advice Center we have access to a ‘whole of market’ panel of lenders to ensure we find a mortgage tailored to your requirements.