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Welcome to Mortgage UK Comparison Forum |
- Mortgage UK Comparison Forum compares mortgages rates and quotes online. The UK forum gives the opportunity to find the cheap mortgages in UK, first buyer, buy to let, flexible mortgage and apply for online. Here you can also find information about bad credit mortgages from financial advisers, lenders, brokers & mortgages and loans companies.
- Mortgage. A loan in which the borrower (the mortgagor) offers a property and land as security to the lender (the mortgagee) until the loan is repaid. Repayments of the loan are usually made on a monthly basis over a long period of time, typically 25 years. In the UK, the most common forms of mortgage are the repayment mortgage and the interest only mortgage. Mortgage rates might be fixed for a period of time or floating. Mortgage is a loan to buy a property where the property is put up as security that the mortgage will be paid back.
- Interest only mortgage. The borrower pays only interest on the amount of mortgage he borrows. Monthly repayments are lower. The borrower must ensure that enough funds exist (e. g. through investment policy).
- Buy to let mortgage is a mortgage arranged for those who want to buy a property to rent out to others. The lender normally bases the lending decision on projected rental income rather than the borrower’s income.
- Debt consolidation is a way of covering high interest debts. Personal loans or credit cards are incorporated into a new mortgage to benefit from the lower rates by over a longer period and reducing monthly payments.
- Flexible mortgage is a new type of mortgage. The interest rate can be calculated daily, instead of monthly or annually. It’s flexible. Any capital repayment of the loan will affect the interst charged on the balance immediately. The lender allows ‘payment holidays’ when no mortgage payments are taken.
- Mortgage Life Insurance - A life insurance that pays off the outstanding balance of a mortgage in the event of the death of the insured.
- Mortgage protection - term assurance to cover the repayment of a mortgage in the event the death of the mortgagor during the period of the loan. In the case of a repayment mortgage the capital sum outstanding is gradually reduced over the term of the loan so that decreasing term assurance would be incorporated in the policy. For an endowment mortgage where the sum assured and the death benefit are at least equal to the amount of the loan throughout the term of the loan, level term assurance is appropriate.
- Mortgage protection insurance - this covers the loan repayments made by borrowers in the event that they are unable to meet them, for example, through illness or redundancy.
- Reverse mortgage – a mortgage, also known as equity withdrawal. That permits elderly people who own their home outright to receive a loan, which can then produce an income with the home as collateral. The loan is repaid plus interest either at the end of the term or on the death of the borrower when the property would be sold.
- Repayment mortgage. A mortgage where the term, regular payments (usually monthly) are made partly to repay interest on the capital and partly to repay the capital itself (the amount of the loan). Initially the largest proportion of the repayment are used to pay interest since the capital amount outstanding is at its highest value. As the years proceed, more and more of the monthly repayments will be applied to reducing the capital until towards the end of the term the large proportion will be paying off capital and a small proportion paying interest.
- Remortgage. The arranging of alternative finance for the purchase of a property that is already mortgaged. For example, obtaining a mortgage with a lower interest rate or different term to replace the existing mortgage.
- Forum provides information about home refinancing, home equity loans and many other money related topics.
- Find tips, articles and advice on finance related topicts.
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