Types of Mortgages

First time buyer
This is a person that has not previously owned a property. Consideration should be exactly which type of mortgage is the most suitable for you. It is always advisable to use a mortgage broker.
This is a mortgage that replaces an existing mortgage borrowed for the purpose of purchasing the property. This is often done to free up finance to improve and/or increase value on the property.

This type can also reduce monthly payments, by finding a mortgage with a lower interest rate.
Buy to let mortgages
A buy to let mortgage is one that is used to purchase a residential property that you are intending to rent out to tenants.
Fixed mortgage
This is also known as a fixed rate mortgage. As the name suggests your monthly repayments are fixed for the mortgage term. A huge plus of this type of mortgage is that, from month to month you know exactly what your repayments are, however if the standard variable dips below the level at which you fixed, you could end up paying more than the market rate.
Flexible mortgage
This type of mortgage lets you pay off extra amounts when you have the money. Payments may be reduced or even a repayment holiday taken. (Only if enough repayments have been building up in reserve).Flexible mortgages usually provide a loan drawdown facility, this means that you can borrow funds set at a predetermined rate.
Commercial mortgage
This is a loan issued to those (typically, companies) who wish to purchase a property for the purpose of business.
Knowing which mortgage is the best for you.
It is always prudent to shop around; you wouldn’t buy the first car that you saw. A specialist broker can answer any questions about the mortgage process, help you hunt down the best deal and warn you about hidden loopholes.
Look out for those loopholes
When applying for a mortgage deal, you need to go through the details with a fine tooth comb and make sure you're aware of the terms and conditions.

Just imagine you take out a deal with an initial low rate of interest. It might seem like a bargain at first but what happens when the introductory rate expires? You could end up with an uncompetitive rate or having to pay a hefty penalty if you leave your lender.

Again, seeking advice from an independent mortgage broker should help you avoid these pitfalls.

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