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UK Mortgage Types

Online mortgage applications in the UK

It's probably the biggest transaction most people make, getting a mortgage or remortgage over property they wish to buy. Not understanding you mortgage options can cost you money over the long haul.

Get an obligation free quote for UK mortgages online

Just click on the button below to get access to our mortgage comparison software, type in the mortgage you want, and go through the offers. It's online, it's easy to follow and understand.

Residential Mortgage Comparisons

Many a broker, and many a lender.

There's a squadron of people out there waving mortgage offers about, many of them with low interest rates compared to others, but which one has the best deal? UK Online can offer you an obligation free way of sorting it out.

Variable, fixed, capped, what interest rate do you want?

Which do you want, Variable? Discounted? Fixed? What's it all mean? If you are totally confused by the jargon, don't worry, it's not rocket science. If you go to our Mortgage Definitions page, you'll find the information you need to best use the mortgage comparison software at the button above.

Factors to take into account — cheap isn't always good

There's more to choosing the type of mortgage you want than simply getting the cheapest quote. You need to think ahead to where the economy is going, and what interest rates may, or may not do. Click on the asterisk, and read on ...

Online quotes from the best mortgage lenders

Most people can't save enough buy a house for cash, so they borrow against the property itself to settle the purchase.This is called mortgage finance. Most times mortgage finance requires that borrower to pledge the house against the debt, to secure the loan required. and, most times a substantial down payment is required to be approved as a mortgage borrower.

A Mortgage is a special kind of loan

A mortgage is a loan to buy a property, and like other loans mortgages come in a variety of types.

Mortgage documentation ends up quite a thick little pile:

Mortgage, or Promissory Note documentation that shows a promise to repay a loan. It sets out the terms of the debt and the method and rules of repayment.

A mortgage is a document that is signed at settlement, the "closing" of the deal. It sets out the terms of the financing and often pledges the property as security.

How the money is divided

All mortgage payments are divided into two different parts:

Principal

The principal is the amount you repay for the money you borrowed. It remains fixed for the entire life of the loan, but reduces proportionally with each payment.

You can never pay back more principal than you borrowed.

Interest

The interest that you will be charged can vary with financial market conditions, and the type of mortgage you set up.

There are two basic forms of interest, fixed rate and adjustable. A fixed rate is one that is set at the time of purchase. With a fixed interest rate you lock in the interest rate for the entire term of the loan. With an adjustable rate, the interest rate you pay changes as market rates move up or down. Although adjustable rates present some risk, they often have a lower initial interest rate than a fixed rate.

Don't take a mortgage with lowest interest rate

Interest rates are important, but consider the total cost of a loan including the APR , loan fees, discounts and facility fees. When receiving a quote from a lender or broker, insist that any discount charges (charged by the lender to reduce the interest rate) be distinguished from the fees rendered in originating the loan.

Choose a reputable lender that will deliver the loan (and costs) they promised. If in the final hours of the transaction you determine that the lender has suddenly increased their profit margin at your expense, you won't have time to start again.

Once you've settled the transaction and signed up for your new home, make sure you check our insurance pages at:



Mortgage Protection Insurance

Life Assurance

Income Protection Insurance

Private Health Insurance

Critical Illness Insurance

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