A quick look at websites and brochures will show you that there are many different kinds of mortgages. The mortgages we've talked about so far are just the basics. There are many different kinds, some of which combine features and offer extra perks to get you to sign up.
If you can think of a mortgage, it probably already exists. So, after you've done your research and learned about mortgage terms, how do you choose? What is the best deal on the market right now?
The truth is that there is no "super mortgage" that will work perfectly for everyone's finances. When choosing a mortgage, you need to figure out what will work best for you, which will depend on your unique situation. Once you know what you want, you can let lenders and brokers help you find the right mortgage.
Here are some possible life situations, along with some ideas for mortgages that might work:
The pupil
Young, single, and likely to always need money! You probably won't be able to come up with a big lump sum for a mortgage, and your income probably comes from part-time jobs, which doesn't make you an attractive borrower. Your best bet is to ask family members for help. A loan for the down payment and/or a guarantor mortgage, along with proof that you are a responsible person, could help you get on the property ladder quickly.
Pushing 30
You're putting yourself in a good position to have a successful career, and you may be thinking about moving in with a partner. But your salary is probably not very high, and you might not have a lot of money saved. Ask lenders about deals for first-time buyers, such as 100% mortgages, and think about getting a joint mortgage with a friend to increase your buying power. Cashback could be used to pay for things like fees and furniture. Those who are willing to take a bit of a risk could get a mortgage that only pays the interest and save or invest the rest.
Gaining ground
You might have a family or people who depend on you now, and your career might be pretty stable. You may want to get the most out of your money, so you may want to look into flexible mortgages or mortgages that can be paid off with money from other accounts. Keep in mind that your home may have built up equity by now, which you could get access to by having your home revalued and maybe switching mortgages. You might want to try a self-cert mortgage if you own your own business and have some money to invest.
