Different Types of Mortgages

A guide to the 15 distinct types of mortgages available in the United Kingdom. From standard variable rate mortgages to more unusual mortgages like current account and self-certification mortgages, there’s something for everyone. Want to learn more try this site.

  1. Mortgage with a Standard Variable Rate

This is the most popular sort of loan. Mortgage payments are determined by the SVR of the lender. The Bank of England Base Rate has a significant impact on this.

  1. Mortgage with a Fixed Rate

A fixed-rate mortgage having a term of 2-4 years with a fixed interest rate on mortgage payments. Although there is a little fee for security, it prevents interest payments from becoming unaffordable.

  1. Mortgage with a Limit

It’s similar to a fixed-rate mortgage. It specifies a maximum interest rate, but it is subject to change in certain circumstances.

  1. Mortgage with Self-Certification

A mortgage that does not need you to show your income through public records. Self-employed people frequently take this course.

  1. Mortgage Repayment

A mortgage in which you pay both interest and capital repayments on the loan. The majority of mortgages are repaid mortgages. It means you will have paid off your mortgage debt at the conclusion of your mortgage term.

  1. Mortgage with No Payments

You merely pay interest on the loan and do not have to repay any capital. To be able to pay off the mortgage capital at the end of the mortgage term, you’ll need a separate investment plan.

  1. Mortgage for the purpose of investment.

A sort of interest-only mortgage in which obtaining a mortgage also entails obtaining a supplemental investment plan in order to repay the mortgage obligation.

  1. Mortgages with an Endowment

A mortgage that is similar to an investment mortgage. In the United Kingdom, there were numerous issues with endowment mortgages since the investment was frequently insufficient to pay off debt.

  1. Mortgage with a Fixed Rate Base

A variable rate mortgage is similar to this. This is a mortgage in which the interest rate is set at a lower rate than the Bank of England Base Rate.

  1. 100% and 125 percent mortgages are available.

In most cases, a deposit of up to 10% of the purchase price is required. However, as house prices rise, many lenders are now willing to lend the full amount. In rare situations, lenders will lend more than 100% to enable you to spend on the house itself.