When you are ready to buy your first home, one of the most important facts that you need to know is that there are several different types of mortgages available. Many people assume that all mortgages are equal, but this is not the case. The fact about buying homes is that there are three different types of mortgage loans. You have the fixed rate mortgage, the adjustable rate mortgage, and the interest-only mortgage. Knowing these three facts about mortgages will help you make an educated decision when you are looking at a new house to purchase. In reality the most common is a repayment mortgage, few lenders will entertain the Interest only option.
Fixed Rate Mortgages: These mortgages always come with a set interest rate. This interest rate is often set at a certain amount for the entire life of the loan or a set product period such as 2 to 5 years. The interest rate is unaffected by market forces or the bank of England base rate. Therefore these mortgages do not fluctuate, which makes them very stable and reliable.
Adjustable Rate Mortgages: These mortgages have a rate that can change depending on certain factors. They follow a percentage plus whatever the Bank of England base rate is. Again, the product lasts for a set period usually 2 to 5 years. These mortgages feature adjustable interest rates. This means that if you want a lower interest rate then you would choose the adjustable rate mortgages but it comes with associated risks.
After all that you’ll need a Building Survey Birmingham way based company can provide https://www.samconveyancing.co.uk/Homebuyers-Survey/Home-Buyers-Survey-Birmingham.