Types of UK Mortgages

Selecting a mortgage can be a perplexing and time consuming task. UK mortgage lenders offer a variety of loan packages under different names with different interest rates, up-front costs, and fine print terms, all of which are subject to change quite frequently. In order to find the best UK mortgage rate for your particular circumstances you need to gather a lot of information and do some research into the different types of UK mortgage payment options. If you don’t have at least a little background knowledge going into the whole process, the variety of different offers may leave you feeling dazed and confused. There are many different types of UK mortgage options available, each with their own advantages and disadvantages.

Remortgage    A remortgage is the process of taking out a new mortgage to pay off the balance of your existing mortgage in order to get a better UK mortgage rate. You can either switch lenders completely or you can renegotiate with your existing lender.

Buy to Let Mortgage    A buy to let mortgage allows you to take out multiple mortgages in order to fund the purchase of multiple properties thereby allowing you to grow your property investment portfolio. This type of UK mortgage is useful if you are buying a property with the intention of renting it out. For a buy to let mortgage, your normal income does not calculate into the payments. They are instead based on the amount of rental income you plan to receive by renting the property out.

Debt Consolidation Mortgage    Taking out a UK mortgage in order to consolidate debts may be a good way to pay off a number of high interest debts such as credit card debt, personal loans, overdrafts, etc. You can pay off your debt very quickly with a debt consolidation mortgage, but now you will be paying a single mortgage payment for a much longer period of time than you would have been paying your other debt payments. Be sure to consult with a financial advisor before deciding on a debt consolidation loan.

Repayment Mortgage    A regular repayment mortgage is the safest and easiest way to make payments on your UK mortgage.