Other Types of Mortgage

Buy to let | Commercial Mortgages | 100% Mortgages

Debt Consolidation Mortgages | Equity Release Mortgages

Buy To Let Mortages

Buy to Let - the property boom has popularised buying property to let. Against a backdrop of a falling stock market reducing the value of pension funds and other investments, people have looked at other means to invest and provide for their future.

Historically, property has always appreciated over time and for most who decide to pursue this investment route it is considered to be long term rather than a "get rich quick" scheme. It is often advised that to reap the benefits of property value appreciation it should ideally be kept for a term of 10 years.

With a growing population of students and immigrants the rental market has grown substantially and trends indicating further growth. Given these factors and the popularity of this type of mortgage, the interest is usually in line with other types of mortgage products and it is even possible to get buy-to-let mortgages with flexible features on a self certification basis.

To make buy-to-let work it's important to research the market and consider the location of the property, the type of tenants you wish to attract, the type of property would suit them and what average rental within that area.

With careful planning and research and a long-term view, buy-to-let can be a profitable and relatively low-risk form of investment. As with all mortgage products the best advice is sought from independent mortgage advisors or brokers.

^top^

Commercial Mortgages

Whether you are expanding your current business or planning to start a business you'll probably need to take out a commercial mortgage. Mortgages of this type are usually for 15 years or more and the property is taken as security for the loan, i.e. if loan repayments are not met, the property is at risk.

Most lenders apply a strict criteria where some may accept applications even when there is an adverse credit history, but others may insist on a positive personal credit rating and an indication to show your business is creditworthy. Most will apply a loan-to-value ratio and will expect you to invest a proportion of your own money towards the purchase.

Decisions will also depend on your current business circumstances and there is always an expectation that you business is stable and profitable. It is wise to have a business plan with long term financial projections to assure the lender repayments will be met on the loan.

First Class Mortgage Advice has considerable experience in advising businesses on the availability and criteria for application. We can help you to make the right and best choice today. Fill in the form and we will respond to you within 24 hours.

^top^

100% (percent) Mortgages

100% (percent) mortgages are no longer available. These were extremely popular amongst the first time buyer community as a means of financing to purchase their first home.

Typical borrowing amounts are between 75% and 90% of the property's value from most high street mortgage brokers or lenders. However for first time buyers there is often a struggle to raise a deposit for the difference in the borrowed amount and the property value. With increasing house prices it can be a difficult situation and in order to address the issue mortgage lenders attempted to offer finance packages with 100% mortgages.

Contact us about alternative mortgages that may be suitable.

^top^

Debt Consolidation Mortgages

A Debt Consolidation Mortgage is the action of combining several loans or liabilities into one loan. Alternatively, debt consolidation is the process of obtaining a new loan to pay a number of other debts. Most people who consolidate their debts are usually doing it to attain a lower interest rate, or to simplify their debts to a single loan. Also known as a "consolidation loan".

By consolidating your debts, you will end up with one debt which can be repaid over a longer period of time. In most cases, it is wise to extend the term the debts have to run. However, if the monthly payments are so large that you find yourself regularly defaulting, spreading the debt over a longer period of time may be the best, or the only option.

Debt consolidation is not a cost saving option. It is likely that this type of loan will cost more in interest, over the term of the loan, than if you had paid off all the individual loans.

If you are considering a debt consolidation loan, it is important that you calculate the exact costs of your current loans. It is best to approach a mortgage broker to discuss the pros and cons of this type of financing to assertain the true costs involved even if it seems the only option during financial instability.

First Class Mortgage Advice based in Edinburgh, Scotland have considerable experience and expertise to guide you in choosing the right package. Contact Us Today for free impartial advice.

^top^

Equity Release Mortgages

This is a type of loan or mortgage which is often marketed towards homeowners who wish to borrow for any purpose approved by the lender e.g. home improvements, house extensions, debt consolidation, raising capital or raising a deposit for another property purchase. The major consideration given when applying or entering into an equity release mortgage or loan is the difference between the value of the property and any current mortgage on the property. These circumstances can arise if property has gained equity through appreciation. The finance is secured against the value of the property and repaid as if it were a mortgage or loan to purchase the property.

If the loan or mortgage has been provided by the original lender it is known as a "further advance". However if the loan is provided by another broker or lender, it is known as a "second mortgage".

Repayment methods for equity release mortgages or loans can either be capital repayment or interest only. If you are considering an equity release mortgage or loan, contact us today using our online mortgage enquiry form so that we may advise on the right package for your needs.

^top^

 

 

 

Full Name
Email
Telephone
Enquiry

 

Mortgages Advice

Mortgages: First Class Mortgage Advice are independent mortgage consultants providing information on getting a mortgage. We are based in Edinburgh and provide services to Glasgow, Edinburgh, Stirling, Perth, Dundee, Aberdeen, Falkirk, Lothian, West Lothian, East Lothian, Midlothian, Scotland and throughout the UK.

Expert advice on First Time Mortgages, Home Movers, Poor Credit Mortgages, Adverse Credit, Capital Raising, Home Improvements, Debt Consolidation, Fixed Rate Mortgages, Discount, Flexible, 100%, Buy to Let Loans/Mortgages, Impaired Credit, Self Certification, No Proof of Income, Low Rate, Cheap, Best, Fees Free, Fast Quick Low cost, Loans Capital Raising Loans, Home Improvement, Debt Consolidation and Secured. Buy To Let. We are independent mortgage advisors who can offer you advice on the best mortgages for your ventures.