With house prices now falling, there has never been a better time to buy!
Finding the right mortgage is becoming increasingly more difficult given the current economic situation and using an independent mortgage adviser can save you time and money.
Mortgages For Beginners
Fixed-Rate Mortgages
A fixed-rate mortgage is a loan which allows you to keep the rate of interest throughout the repayment period. During the recession, the amount of fixed-rate mortgages have decreased, meaning that it is harder to get one and you are more likely to need a relatively high deposit (up to 40%). Fixed-rate mortgages are for those who like to have stability; your interest rate doesn't change with differing interest rates and your payments will be the same each month. By taking out an SVR (Standard Variable Rate mortgage) your monthly payments can fluctuate from month to month, depending on the mortgage providers' interest rates. Your credit report and the amount of deposit you have available determine whether you are suitable for a fixed rate mortgage and what your interest may be.
Tracker Mortgages
A tracker mortgage is a variable mortgage and relies on the Bank of England's base-rate. In recent times, the BOE's base-rate has been the lowest it has been in a very long time, meaning that some people are paying next to nothing on their mortgage repayments. This is only an advantage in the short-term, as when the economy strengthens the base-rate will increase, meaning higher mortgage repayments.
First-Time Buyers
In today's economic climate, it has never been harder for first-time buyers. Mortgage products are decreasing, meaning that mortgage providers are becoming anxious of who they borrow money to. Even though house prices are falling, many mortgage firms are looking for a higher deposit from first-time buyers, to show that they are serious about the commitment. Also, a good credit rating is crucial during these economic times. Creditors are not likely to lend you money unless your credit history is to an acceptable standard. Check your credit report to make sure there are no false blemishes on your report.
Interest Only Mortgages
Interest Only Mortgages do exactly what they say on the tin. For a fixed term, you can just repay the cost of your interest. In times of financial difficulty, this type of plan can help you pay off debt or just be relieved of your mortgage repayments for a limited amount of time. Some mortgage providers offer this facility to those who are struggling financially.
When looking to buy a house, it is vital that you check your credit score before applying for a mortgage. Also, use a mortgage provider which can supply you with all the information you may need about the process, especially if you are a first-time buyer.
Finding the right mortgage is becoming increasingly more difficult given the current economic situation and using an independent mortgage adviser can save you time and money.
Mortgages For Beginners
Fixed-Rate Mortgages
A fixed-rate mortgage is a loan which allows you to keep the rate of interest throughout the repayment period. During the recession, the amount of fixed-rate mortgages have decreased, meaning that it is harder to get one and you are more likely to need a relatively high deposit (up to 40%). Fixed-rate mortgages are for those who like to have stability; your interest rate doesn't change with differing interest rates and your payments will be the same each month. By taking out an SVR (Standard Variable Rate mortgage) your monthly payments can fluctuate from month to month, depending on the mortgage providers' interest rates. Your credit report and the amount of deposit you have available determine whether you are suitable for a fixed rate mortgage and what your interest may be.
Tracker Mortgages
A tracker mortgage is a variable mortgage and relies on the Bank of England's base-rate. In recent times, the BOE's base-rate has been the lowest it has been in a very long time, meaning that some people are paying next to nothing on their mortgage repayments. This is only an advantage in the short-term, as when the economy strengthens the base-rate will increase, meaning higher mortgage repayments.
First-Time Buyers
In today's economic climate, it has never been harder for first-time buyers. Mortgage products are decreasing, meaning that mortgage providers are becoming anxious of who they borrow money to. Even though house prices are falling, many mortgage firms are looking for a higher deposit from first-time buyers, to show that they are serious about the commitment. Also, a good credit rating is crucial during these economic times. Creditors are not likely to lend you money unless your credit history is to an acceptable standard. Check your credit report to make sure there are no false blemishes on your report.
Interest Only Mortgages
Interest Only Mortgages do exactly what they say on the tin. For a fixed term, you can just repay the cost of your interest. In times of financial difficulty, this type of plan can help you pay off debt or just be relieved of your mortgage repayments for a limited amount of time. Some mortgage providers offer this facility to those who are struggling financially.
When looking to buy a house, it is vital that you check your credit score before applying for a mortgage. Also, use a mortgage provider which can supply you with all the information you may need about the process, especially if you are a first-time buyer.
