There is no doubt that trying to find the right home loan in the UK can be stressful. Deciding on the best home loan can prove overwhelming, simply because there are quite a few types that you can choose from. If you currently live in the UK and you are trying to apply for a loan, but are experiencing a hard time finding the right one, below you will find all the different types of loans available in the UK just for you.
Have a look at variable mortgages
Variable mortgages are one of the most common types of home mortgages. A variable mortgage simply means that monthly payments will be determined by your bank in England. You will find that these are sometimes the cheapest options to residents in the UK, because competitors are constantly lowering rates to compete. What are fixed-rate mortgages? If you decide to take this route, you will find that your payments are fixed for a certain amount of years. This means that it doesn’t matter what happens to the bank’s rates, your rates will always be the same. When the bank’s rate drops, you will still pay a fixed loan rate. The same is said if the bank’s rate rises.
Consider capped mortgages
This is a mixture of fixed and variable mortgages. If the bank’s rate rises, your mortgage will rise to a certain point and stop. If the bank’s rate drops, you will still benefit from the low mortgage price. Self-certification mortgages You should also have a look at self-certification mortgages. If you cannot prove what you earn a month you can give the bank an estimation of what your income is per month. Taking this route, you will be required to pay a larger deposit due to risks. Interest-only mortgages If you consider an interest-only mortgage, you will only be required to pay the interest for the next 25 years. At the end of the 25 years, you will be required to pay off the rest of the money. This is still an option that you can consider, taking your situation into consideration. Take your financial situation into consideration before making a decision on the mortgages currently available in the UK.