It is a fact that applicants get panic when they come to know about the tough requirements of mortgaging. The concept of mortgaging is not limited for loan approval only rather it holds a wide meaning and has several types as well. Those who are planning to mortgage for a house, business, or for another purpose shouldn’t just jump into it without doing research. In this blog, detailed information about mortgaging is provided so the readers would be able to take the decision.
Types of Mortgage
It is indispensable to know which type of mortgage is necessary for your financial position.
Interest-Only Mortgage
In this type of mortgaging, you choose to pay interest every month until reaches the actual amount. Well, the full amount is also needed to pay after the pre-decided period. However, further, you’ll have to decide whether you want to go for variable interest or the fixed one. In the case of a variable, the interest-rate varies every month depending on the economic circumstances and SVR.
More on, you should know that SVR varies on a regular basis that means, at some point, if you are paying 4% interest, you may have to pay 10% next time. In short, the variable interest rate is riskier. However, for a fixed rate of interest, you pay the fixed amount only.
Tracker Mortgage
The tracker mortgage is somehow similar to the variable rate of interest because here, the interest also varies according to the Bank of England Base Rate.
Off-Set Mortgage
If you choose to go for mortgage advice in Northampton, the experts will suggest you go for an offset mortgage. It is a quite feasible option because the borrower basically has to pay the interest on the offset amount. Suppose, you have £35,000 in the saving account and you ask for a loan of £335,000 then the interest would be charged excluding the amount that you have kept in the saving account. So automatically, the interest would be charged on £300,000 only.
Reason to go for Expert Mortgage Advice
There is not a single reason for which the applicants should go for professional mortgage advice in Northampton because it is a completely legal process and requires expertise. In short, if you want a seamless or flawless mortgaging process, make sure that you are going to rely on the expertise of a professional.