28/07/2022 0 Comments
Discussing the Different Mortgage Types
With more mortgage applications being approved than ever, there has been an uptick in blogs, articles and online chatter about mortgages.
Unfortunately, this deluge of information can quickly feel overwhelming. Sifting through reams of info to find what's relevant to your needs is at best frustrating and at worst a complete waste of time.
Too much information can sometimes confuse rather than clarify. Therefore, at Citywide Financial, we want to take it back to the basics and discuss the various mortgage types. We'd also like to propose to whom these types of mortgages best suit.
Almost all mortgages fall into one of the below categories.
- First-time buyer mortgages
- Switcher mortgages
- Self-build mortgages
- Expat mortgages
First-time buyer mortgages
As the name suggests, this type of mortgage is for first-time buyers. First-time mortgages help individuals or couples take that first step onto the property ladder. For a first-time mortgage, a buyer only needs a 10% deposit before applying for the mortgage.
Switcher mortgages are available to those currently paying a mortgage. Put simply, a switcher mortgage is when you switch from one mortgage lender to another. Homeowners may switch for a variety of reasons. For example, they may have found a better deal or more favourable repayment conditions with another lender. Switcher mortgages are for those who have a mortgage and are interested in a better repayment deal.
Put it as bluntly as possible; a remortgage is a process where you pay off one mortgage from the proceeds of a new mortgage by using the same property as security. Remortgaging is usually for individuals who want lower monthly repayments or for those looking to fold a variety of outgoing expenses into one monthly bill.
Self build mortgages
Self-build mortgages are for those who want to build a property rather than buy a pre-made home. What makes these types of mortgages unique is that instead of drawing down the mortgage in one lump sum, the mortgage is paid out in smaller sums over an extended period. In effect, you draw down a part of your mortgage to pay for different stages of the property's construction. This type of mortgage is for those who own land and want to build their own house.
An ex-pat mortgage allows the borrower to purchase a property while they are out of the country. In many ways, these types of mortgages are like a standard mortgage; however, they will have additional requirements that the borrower must fulfil before receiving approval. This type of mortgage is designed for those thinking of returning to Ireland after emigrating.
Buy-to-let is a financial product designed for those who want to purchase a property they don't intend to live in. This type of mortgage is for investors and for those who intend to become landlords.
The above is only the briefest introduction to the different types of mortgages available. Each of these mortgage types has its specific requirements and nuances that a borrower needs to understand. That's why speaking to a mortgage broker is essential when you're seeking a mortgage. The expert team here at Citywide Financial can provide clients with Expert mortgage advice on all types of mortgages. Not only that, but we can also assist clients with getting the right mortgage for their requirements. Please contact Citywide Financial today for the best mortgage solutions.