The market for mortgages in the UK is one of the most sophisticated in the world. It offers a choice of more than 4,000 products, making the market very competitive and requiring the most innovation on the part of lenders.
Because of the sheer complexity of the market, research as well as sound UK mortgage advice before taking out a mortgage.
In general, however, lenders in the UK charge a valuation fee for mortgages. This pays for the chartered surveyor who will visit and survey the property to ensure that the value of the property is enough to secure the amount of mortgage.
Some of more common mortgages in UK are repayment, endowment, individual savings account, and pension mortgages. In repayment mortgages, monthly payments pay off a portion of both the principal and the interest. fee free mortgage broker Doncaster In endowment mortgages, a life insurance is taken to pay off the loan at the end of the term.
On the other hand, in individual savings account mortgages, the loan is paid off at the end of the term from a savings account opened for such purpose. In pension mortgages, the loan is paid off at the end of term from a tax free pension account established for the purpose.
There are also a variety of interest rates applicable to mortgages in UK. Mortgages may be subject to variable rates, where rates change every time market interest rates changes, or to fixed rates, where the interest rate is pegged for a specific period.
Mortgages may also be subject to capped rates where interest rates may change subject to a certain limit or cap. Other rates include those pertaining to cash back deals and discounted rates.
Mortgage applicants clearly need to get good UK mortgage advice before plunging into anything. This UK mortgage advice may be availed from a lot of providers which any applicant can easily find on the Internet.