Top 10 Mortgages
Mortgage Payments vary with changes in base rate. The best type of variable mortgage is a Tracker Mortgage. A tracker mortgage is guaranteed to change inline with base rates. Although a variable mortgage is the most common, make sure you don't end up on your lenders standard variable rate, which is usually higher than better deals which are available elsewhere
Fixed rate mortgages are becoming increasingly popular, despite ironically a period of greater interest rate stability. Fixed rate mortgages give homeowners the certainty of what interest payments will be. Most UK fixed rate mortgages are still for a relativiley short period such as 2 or 3 years.
Mortgage where you only pay interest on loan and do not repay any capital. Interest only mortgages without any specified repayment plan have increased in popularity. They have increased from 13% of all loans to 26% (soucre CML statistics)
4. Self Certification Mortgage
Mortgages for those who have difficulty proving income. Self Certification mortgages have become more popular due to the increased in number of self employed, but, also due to an increased number of homeowners seeking to use self certification as a vehicle to get a large mortgage.
5. Current Account Mortgage / Offset Mortgage
Current account mortgages are one of the fastest growing types of mortgages since being introduced recently. They allow homeowners to combine their mortgage account and savings, automatically leading to lower interest payments, if savings are high.
A mortgage specifically for buying a property to let. These are usually 2nd homes for private property investors. The buy to let market has been strong because of high rent incomes.
Buying a house and sharing the cost as become an obvious way for struggling first time buyers to share the cost.
Help for people looking for mortgages with bad credit ratings
9. Capped Mortgage. Supposed to offer the best of both fixed and variable. There is some flexibility of mortgage rates, but they can't go above a certain rate.
10. Green Mortgages. Increasing environmental concerns is creating a market for green mortgages. This is a mortgage where funds are used to only invest in ecological sound firms