Types of mortgages
There are currently over 9,500 mortgages available in the UK. These are of various types, including:
- Flexible Mortgages – Designed to allow some flexibility, so overpayments, underpayments and payment holidays are allowed. Suitable for those with unpredictable incomes, such as the self-employed and commission based employees.
- Offset Mortgages – Also known as current account mortgages. Savings are taking into account when calculating interest, meaning either lower repayments or a shorter mortgage term. Usually cost effective only when a reasonable amount of savings are available for offsetting.
- Self-Certified Mortgages – These allow an application without the need to produce any proof of income. Suitable for those with difficulty proving income, such as the newly self-employed and those with multiple sources of income. They are more expensive and less readily available than mainstream mortgages and may well be banned altogether within the next 12 months.
- Non-Status Mortgages – Specialist mortgages for those with a less than perfect credit history. The overall cost for comparison is 9.75% APR – the actual rate available will depend on your personal circumstances. Ask for a personalised illustration.
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