Choose The Right Mortgage For You
In recent times mortgages have been making headline news. There’s more choice in the marketplace than ever before and lenders are launching new types of mortgages to suit the economic climate. Ensuring you get the right mortgage to suit your own circumstances can be confusing to say the least, particularly if you’re looking to buy for the first time or maybe remortgaging after a number of years with one lender.
Group mortgages have only been around for a relatively short time but they are increasing in popularity. A group mortgage is ideal if you find yourself in the situation of not being able to afford to buy on your own but don’t want to continue renting. For example, if four friends apply for a group mortgage, the lender will base the amount they will lend on the incomes of all four applicants enabling a bigger property to be purchased, and with each person having an equal 25% share. In certain parts of the UK, group mortgage applications have rocketed due to house prices being more than six times the average annual income.
Buy-to-let mortgages are another area that has grown considerably in recent years. Investing in property and gaining a rental income while it hopefully accrues in value is seen by many as a safe long term plan. The student market is a buoyant one when it comes to buying to let so it pays to research the area well before taking the plunge and make sure there is a good demand for the type of property you want to let out.
Remortgaging can save you money if you’re prepared to research the market thoroughly for the right deal. Put simply, it means switching your mortgage from one lender to another. When you compare UK mortgages it’s easy to fall into the trap of not comparing like with like due to the vast number of mortgage products out there and the often difficult to understand financial jargon that tries to explain them. Seeking out sound financial advice can help to save you money when it comes to remortgaging, as the last thing you want is to be stuck with the wrong product which could be costing you more each month rather than less.
These are just a snapshot of the types of mortgages that are available in the UK. Arranging a mortgage is one of the biggest steps anyone takes in their life as it’s such a huge financial commitment but with the right advice and careful consideration, there is no reason why you shouldn’t end up with the product that’s right for you and your future.
The most important thing to consider with any mortgage is affordability; failure to keep up your repayments may result in your house being repossessed, which is another very good reason to get comprehensive and professional advice from an expert before you step onto the property ladder.
Daniel Collins writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.
