OK, so you have decided to get a mortgage.
While this is always good news, you are about to embark on one of the most important and complex financial agreements that you will undertake during your lifetime.
The one thing to remember is that not all mortgages have been created equal, and whether you are applying for your first, second or third it is imperative that you choose one which suits your precise, real-time circumstances as a borrower.
3 Popular Mortgage Options in the Modern: Tailoring a loan to suit your circumstances
With this in mind, we have decided to identify three of the most popular and contemporary mortgage options in the modern age, each of which has been designed for a specific demographic of customers. These include: –
Historically, self-employment mortgages are tougher to become eligible for as a consumer while firms are also known to hedge their bets by requesting three years’ account information and charging higher interest rates. This type of mortgage is becoming increasingly popular in the UK; however, with Saffron Building Society revealing that an estimated 4.6 million British citizens currently work for themselves (while also generating more than £1 trillion for the nation’s economy).
As freelancing becomes increasingly commonplace and lucrative, however, we can expect lenders to become more relaxed and offer a wider range of competitive products to applicants.
While the UK may be lagging behind Europe and Scandinavia when it comes to the construction of self-build properties, this is still an increasingly popular market in Britain. If you do own a plot of land or hope to demolish an existing home in order to build a new one, however, you will need to seek out a smaller, self-build mortgage that is tailored to your needs. Funds are delivered at fixed intervals during the build, while many packages also include the options of making repayments on an interest-only basis until the project is complete.
If you have been watching the news recently, you will know that the lower end of the buy-to-let mortgage market has been hit recently by higher stamp duty rates and the eradication of numerous tax advantages. This has been done to regulate the rental market in the UK, but despite this buy-to-let properties and mortgages remain in high demand in 2016. Lenders can offer up to £1.5 million to landlords across 10 properties (as a general rule), while the monthly rental cover must equal at least 125% of your mortgage repayments over time.
Tread carefully with this type of market; however, as growth will be hit hard by new government initiative and only those operating at the luxury end of the market will be able to truly make hay.