Types of Mortgages
What Are the Types of Mortgages Available?
When it comes time to apply for a home loan – it’s well worth noting that there are actually several types available. Different borrowers may need to apply for particular solutions, while others may not even be eligible to apply for specific variations (such as doctors only being able to apply for doctor mortgages). With many different types of mortgages available, it’s not uncommon for potential applicants to feel confused, so here’s a closer look at some of the most popular out there.
1st Home Loans
Home loans, or regular mortgages as they are typically referred to, are the most popular types of lending options available to borrowers. An applicant will typically pursue this type of loan if they are planning on purchasing a new house. First time buyers can apply for this loan, as can investors and developers.
This option is only available to borrowers that already have a mortgage in place. It works by allowing someone to have the terms and conditions (including the costs) or their existing loan evaluated, typically by a mortgage broker or financial advisor, and then seeing if there are more appealing options on the market.
These types of loans, as their name might suggest, are intended for investment purposes. Some investors may want to add another property to their portfolio, while others may want to obtain a sum of cash to allow them to invest in a project. Whatever the reason – these loans can be ideal when an amount is needed, with a return on investment being the end goal (such as buying to let).
Business loans are specifically aimed at businesses. They are broken up into individual borrowing policies; such as equipment financing, truck financing, or general finance – but the purpose always remains the same. They are intended to offer companies a way to secure financial support to cover the cost of purchases and then allow the borrower/s to repay over time.