At innovative mortgages we fully understand that the property and mortgage market can feel extremely complex, the amount of information currently available can be very confusing.
There are many different types of mortgages, for example, General mortgages, Re-Mortgages, Buy2Let Mortgages, Council Right to Buy Mortgages, Bad Credit Mortgages and mortgages for self employed people. It is important to choose the right one with the best rates for your own personal circumstances.
These are usually classed as the average type of mortgage available in the main from high street or public lenders, these types of mortgages come in the form of repayment mortgages, these are based upon you paying the whole loan off via monthly instalments which include both repayment and interest together, and interest only mortgages where you simply pay the interest on the loan. In addition there are different interest rates available i.e. fixed, tracker, capped and variable options.
A mortgage with the same lender for say 25 years does not exist these days, After a period of time, usually a few years, the borrower may choose to remortgage the property to gain a better interest rate or raise capital for home improvements or repay outstanding debt. A re-mortgage is the process of moving the mortgage from one lender to another.
Other types of mortgages include buy to let mortgages, these are perfect for landlords who are looking to finance a property for the purpose of renting out to potential tenants, as a guide the buy to let market has grown significantly in the past few years as many people are now taking the option to rent instead of purchasing a property themselves.
Council right to buy mortgages are there for existing council tenants to buy the property they already live in, there are rules around these types of loans and you can only apply if you have lived in your council property for minimum of five years.
Even in today's tough economic climate there are still a limited number of lenders that will still consider people who have poor credit history or an impaired credit report. You should be very clear and expect that the rates available on such types of mortgages are higher than average or from say a high street lender. However each case is usually assessed on its own merits. Its virtually impossible to say if someone with bad credit will be able to find a mortgage without obtaining more information about the clients individual circumstances.
There are certain lenders that will consider clients with missed payment history, CCJ's registered against them but again the general rule is that each case needs to be assessed and its own circumstances taken into account. Through our relationship with a nationwide, leading mortgage broker, Innovative Mortgages can introduce you to a mortgage broker that will perform a full review and fact find in these types of cases and establish very early on if achieving a mortgage is a realistic option at any given time.
With these types of mortgages and in the main due to the economic climate today, lenders are becoming more cautious, in particular with self employed people, for reasons that are obvious. The risk to lenders for self employed mortgages is extremely high and is significantly greater than that of employed applicants with proof and clarification of earnings and income.