FIRST TIME BUYER
It has long been recognized that the huge potential of the first-time buyer to introduce new demand for their business is essential for continued growth in the mortgage-providing sector. As with any other market place, the business of providing mortgages has to respond to the needs and requirements of its customers. Innovative packages inviting the parents of prospective buyers to use their own homes as collateral in lieu of a deposit, of allowing friends to buy jointly or collectively and encouraging more single people to enter the property market are now widespread and mainstream. In fact many of the options open to the second or third time buyers are now available to the property newcomers, including lower rates, cash-backs and other incentives.
BUY TO LET
The Buy-to-Let sector of the mortgage market has seen remarkable growth in recent years. It is very attractive means of investment with immediate visible return. The advantage to the buyer is to cover the cost of the mortgage without any or very little additional pay out, while allowing the value of the house to appreciate and get capital gains. It is very important to search both the mortgage and property markets before getting on a Buy-to-Let mortgage.
FIXED RATE MORTGAGES
With a fixed rate mortgage, your interest rate is fixed for a certain amount of time - usually one to five years - so you know exactly what to expect in terms of mortgage payments. Because of this, a fixed rate mortgage is usually a good buy for people who need to know exactly how much their monthly repayment will cost so they can budget accordingly.
With an offset mortgage, you use the money in your savings and current accounts to help to reduce your monthly mortgage repayments or your mortgage term. You won’t pay tax on your savings as they won’t be earning interest and you can still access them when you need to. Of course, accessing your savings may increase your mortgage term or monthly repayments. By offsetting you could reduce your mortgage term or your monthly mortgage repayments and still keep instant access to your savings.
DISCOUNT OR TRACKER MORTGAGES
A tracker mortgage could be ideal for you if you want a mortgage that moves in line with Lender’s rate. So when lender’s Base Rate falls, your monthly repayments fall. If the rate rises, so will your monthly mortgage repayments
Remortgaging is worth considering if the fixed or discounted period of your current mortgage is coming to an end, or if your home has risen in value and you are looking to release some equity. Switching your mortgage can also be a cost-effective way of borrowing larger sums of money at lower interest rates.