Buy-To-Let mortgages

Here are my top 3 festive buy-to-let mortgages from a selection by Moneyfacts:

1. Best Fixed rate product must go to Whiteaway Laidlaw Bank with their 5.99% 5 year fixed available up to 70% LTV and with an arrangement fee of £999. This is of interest to any landlord who want to make sure they are not caught out if interest rates turn.

2. National Counties BS are currently offering a 5.44% term variable rate. The arrangement fee is a very reasonable £995 but it's only available up to 60% LTV.

3. Principality BS has recently launched a very low 3.69% tracker up to 31/01/12. The downside again is the low LTV, only 60% and the hefty arrangement fee of 3.5%

The Most Common Mortgage Types

The Most Common Mortgage Types
If you live in the UK and want to buy a house, you will need a mortgage. At first it seems overwhelming but with a little information you can be prepared for one of the biggest decisions of your life.

Buy to Let Mortgage
Buy to let mortgages are intended to for people waning to let the house after you buy it. You can choose a capital and repayment or an interest only.

Capital and Interest Mortgages
This is the most common type of home loan. The house belongs to you after you pay it off, which normally takes about 25 years. You don’t end up paying about twice the price of the home in interest because the bank makes money off the interest.

Endowment Mortgage
This is similar to an interest only mortgage, except you pay money into an endowment linked to the house. The endowment pays off the capital at the end of the mortgage loan.

Capped Rate Mortgages
The interest in capped rate mortgages is still variable and will go up and down. The big difference is the interest is capped and will never go above the cap.

Discount Mortgages
This has a discount interest rate at the beginning but goes back to normal after a period of time.

Adverse credit Mortgages
This mortgage is for those with a bad credit rating.

Shared Ownership Mortgages
Also known as a right to buy, this is where a housing organization allows you to purchase a property at a discounted rate.

Flexible Mortgage
This type of mortgage can be great or horrible. Get some solid advice before choosing this one.

Interest Only Mortgages
Here, you pay the interest on the loan. Then at the end of the loan you must pay off the capital.

Fixed Rate Mortgages
The rate stays the same for a set amount of time before fluctuating.

Self Build Mortgages
This is done in stages as you buy and build on a property. However, the payments are still due even if you are behind schedule in building.

These are the most common kinds of mortgages. First, choose a couple that sounds like it would fit your situation. Then, armed with this information, do a little more research to determine exactly which mortgage is best for you.

Private Mortgage

A private mortgage is a financed property agreement through a company that allows a person to borrow to buy a home, but yet the company is not a bank, lender or loan broker. Although not able to apply for a traditional mortgage through traditional means, with private mortgage the borrower can consolidate their debt and pay off bills or remodel their home. A private home mortgage can be applied for online at any time. is required by any lending institution that approves a homebuyer’s mortgage loan with a down payment of anything less than 20% of the home purchase price.

Mortgage insurance assures the lender of loan repayment in case of default by the borrower for any reason. Risk-free loans assured by this coverage allows lenders to offer homebuyers larger title loans than would normally not be allowed with such low down payments. Many buyers are finding they can get a $200,000 property financed with 10% of the down payment of purchase price when mortgage insurance is attached to the loan.

This coverage offers homebuyers a chance to buy more house for their down payment percentage as well. Rather than require the typical 20% down payment for a cheaper home, private mortgage insurance allows buyers to enjoy an upscale home with less down payment. Mortgage insurance can be paid for with an extra monthly payment separate to the regular payment or it can be paid in one, complete sum at closing. Private mortgage insurance can also be included in the interest rate or included in the financed amount. This coverage may also be discontinued under certain circumstances in regard to accrued equity.

New Mortgage Loan

Allow consumers to receive financial assistance when purchasing a new house. These are available through mortgage companies that advertise and do business over the Internet. A new home loan is also available through mortgage companies that offer communities the conventional way of working with mortgages, through the local lending company. There are many different options with mortgage companies, and consumers can take advantage of the current low interest rates and the great services being offered by many lenders.

Researching the different options can give a homebuyer the opportunity to find the best deal and package for their family’s needs. There are so many loans and lenders online, consumers can almost get a customized new home loan package that fits their unique financial circumstances. There is a myriad of options when it comes to a mortgage. New home loans can be FHA loans, or a variety of other types. There are reverse mortgages available, and there are interest only mortgages being advertised online.

The first step in finding the right new home loan for the individuals needs is to find what the current interest rates are and what the economic indexes are indicating. Then, the consumer should find a reputable mortgage company that is trustworthy, but competitive. New construction home loans that have a float-down option allow borrowers to lower the interest rate, if rates go down during the lock period. New construction home loans that are structured to become a permanent mortgage may allow a borrower to get better mortgage terms and a more desirable rate lock. This option is advertised as a “one time close.

The advantage of a one time close in a mortgage is that the borrower deals with one lender, one agreement, and one closing. Obtaining financing for new building has advantages over a conventional purchase. The borrower chooses the model, feature, and finishes that will work best for their unique situation. Knowing who the builder is, how it is built, and the quality brings satisfaction. A new construction home loan may even allow the borrower to live in a planned community complete with park, pathways, and pools. Do some research online for competitive interest rates, low or no down payment options, and shorter terms. Pray about choosing a reputable builder and mortgage company.