What is the right mortgage for me?

In order to ensure that your mortgage suits your requirements and your property, it is crucial to research the various options available to you.

With a diverse range of different mortgages available it can be very difficult to know which one best suits you, so take your time in considering the appropriate choices for you.

Flexible mortgages

There are lots of mortgages now offering the option to underpay or overpay the monthly payment of your mortgage. This may suit home owners that receive bonuses or have a sporadic income. The interest of a mortgage is commonly calculated on a daily basis, so overpaying can reduce the balance and term of the loan instantly.

Current account mortgages

A current account mortgage is used through the borrower’s current account, which in essence makes the current account a large overdraft. Paying savings or your income in to a current account will gain interest, which will cancel out a percentage of the interest owed on the mortgage. For consumers that are disciplined, a current account mortgage can be repaid quickly.

Offset mortgages

An offset mortgage has separate accounts where all balances counterbalance against each other. Effectively, the credit balances within the individual’s savings and current account are used to balance the equivalent value which is owed on the mortgage. In the long-term, this will reduce interest payments. Often the rate will fluctuate, as the majority of offset mortgages are available on variable rates.

Buy to let mortgages

A buy-to-let mortgage is a way of funding an investment. The difference between buy to let mortgagesand standard mortgages depends on the criteria that the lender chooses to fund the purchase.

A larger deposit is required by lenders, and they will also want to ensure the rental income is much greater than the mortgage repayment amount. A buy to let mortgages calculator will determine the loan depending on the income of the individual.

Specialist mortgages

Individuals requiring a mortgage will have different circumstances, which is why specialist mortgages exist. Specialist mortgages are suitable for borrowers that have experienced credit problems in the past, or for individuals that are considering to buy-to-let. A property that is especially high-value may also require a specialist mortgage.

Self-certification mortgages

Individuals that have issues confirming their income or if their income is infrequent then a self-certification mortgage may be offered by lenders. Borrowers will have to have an understanding of their income, but they will not have to provide proof of total earnings. The terms of this type of mortgage will depend on the lender and the market rates at that period in time. It is important to remember that lying about income is a criminal offence.

There is such a vast selection of different mortgages available, that a lot of time and consideration is required to ensure the right one is chosen. Of course, the amount of the mortgage depends on the lender and the income of the borrower. Consumers can calculate the amount they can borrow with a mortgage calculator to get an idea of what can be borrowed.