Mortgages are big business; £17.9 billion in gross mortgage lending was made in January 2005 alone. That’s because not all of us are fortunate enough to be able to buy a property for cash. In fact the large majority of UK inhabitants have to take out a mortgage to become a home owner. So whether you are looking to buy a studio flat or a mansion with swimming pool and Jacuzzi, you will probably need a mortgage to get the home you desire.
People who need mortgages are often categorised into the following groups:
1. First time buyer mortgage - If you are a first time buyer looking to make the first rung on the property ladder then you may have saved up a small deposit but to be able to afford the entire property you will need a mortgage.
2. Home mover mortgage – perhaps you already own your own home but now you need something slightly bigger or you are looking to move to a different location. Then you are known as a home mover with a need for a mortgage.
3. Remortgage – perhaps your initial mortgage deal has come to an end and you want to get a new mortgage on your property to avoid the increases in interest rates that your current mortgage lender is penalising you with just because your fixed rate or discounted rate period has ended. This is known as remortgaging your existing property.
4. Buy to let mortgage – an increasingly popular investment for people with some capital is a buy to let property. There are specialised mortgages available if you want to buy an additional property or properties to rent out.
Why are mortgages so complicated?
When you look at the basics of a mortgage it is not that complicated. It’s rather like a secured loan as mortgage lenders will lend you money to enable you to buy the property of your choice. This mortgage is secured against your home and if you fail to make repayments then the mortgage lender has the right to repossess the home and sell it to try and make back any losses it has incurred.
It’s the complicated jargon and myriad of different offers available on the marketplace that really put the frighteners on people. How do you know whether a fixed, capped or variable rate of interest is right for you? How do you know what difference having a daily interest mortgage in comparison to an annual interest mortgage makes? Confused? Read on…………
Mortgages Online
Mortgages have inherited the complexity badge when it comes to financial products; we just don’t understand them. We prefer to let an Independent Financial Advisor or mortgage broker determine the best mortgage available for our circumstances. Some people will tromp down the high street from lender to lender seeing what mortgages they will offer but does that necessarily mean that they are getting the most suitable mortgage product for their circumstances? Probably not.
Such mortgage hesitancy makes it very hard to sell such products online as people would prefer to deal with someone face to face when they are making such a huge financial commitment. We haven’t quite reached an era where people are happy to remortgage or get a first time buyer mortgage online. They don’t trust themselves, or feel that applying for such a huge loan online is way beyond their zone of comfort in online transactions. There are companies out there that will offer mortgage quotes online, but consumer usage is relatively low.
We can help!
Where the internet can help you though is unveiling mortgages in a simplified manner to enable you to make informed choices when you need a mortgage to make a house purchase or remortgage a home. We can explain away the jargon mysteries and pull apart the intricacies of the products to help you get a clear understanding of the types of products available and reasons why one type of mortgage may suit you over another.
The following pages dedicated to mortgages will
introduce you to many of the terms associated with mortgages
and help you along your decision path in determining what the
best mortgage deal is for you.
For more on mortages see UK
Mortgages which is a great guide to mortgages in the UK.
