Explaining the Different Types of Mortgages
You have heard it mentioned all over television and the news
. That would be that the pricing on houses has dropped which has made it a great time to consider buying a home. During the times we are living in it has become harder to find the right mortgage lender to get into a home. The good news is that there is help out there that is ready and available for you take advantage of and that help would come with a great mortgage advisor.
The first type of mortgage that I will discuss is the fixed rate mortgage. This type of mortgage means that you will keep the same amount of interest throughout the whole time that you pay the mortgage. Since we have been going through this recent recession, it is a lot harder to get this type of mortgage plan and you will often have to pay a higher down payment deposit in order to get approved for this mortgage plan. This plan is the most popular plan because it makes it easier for people to pay their monthly rate without worrying about it changing.
Another type of mortgage that is available for you to choose from is the tracker mortgage. This is the BOE (Bank of England) rate which has been a very low rate. People like this plan because they hardly have to pay anything on interest rates. The reason it has been so low for now is because of the economy, but once things begin to improve in the economic environment, the mortgage rates for this plan will be high again.
For people that are buying a home for the first time, there is a mortgage plan called the first time buyers plan. Because of the hardship times that we are living in, it has become a lot harder for lenders to just openly trust a new buyer with a mortgage loan, which makes it a lot harder for new buyers to get this plan.
Mortgage lenders are looking for established and trusted buyers who already have a good history of paying off their loans. This doesn't mean that it is completely impossible for a new buyer to get a home so don't let this discourage you. You will most likely be opted to pay a higher deposit though. Being a first time buyer, it is important to check your credit score so that you will know your chances of getting approved.
Looking for a
first time buyer mortgage can be tricky and you have to make sure you find the best deals on
fixed rate mortgages as well as all the other types available.
Explaining the Different Types of Mortgages
By: Jamie Francis
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