Getting a mortgage may be the largest financial commitment you make, so it’s important to find one that suits you. Mortgages come in all shapes and sizes – the right one for you usually depends on your finances, needs, and preferences.
We’ll help you understand the main types of mortgages, and show you where to find more information about them:
Want to get your foot on the property ladder? This kind of mortgage is designed for people buying their first home. Mortgage companies often see first-time buyers as higher risk, but if you impress them you can still get decent rates and even incentives, such as cashback. Even if you don’t have much of a deposit, there may be a way for you to get a first-time buyer mortgage.
Upsizing, downsizing, or simply relocating? Home-mover mortgages are for people who already own a home and are looking to move. You may be able to ‘port’ your existing mortgage – which means transferring it to your new property (though not necessarily at the same rates) – or you can start a new mortgage from scratch.
Remortgaging means changing the mortgage on your current home – either by getting a different deal with your existing lender, or by switching to a new mortgage company. Many people remortgage to get a better interest rate, change their monthly payments, or release equity to spend on things like home improvements. However, there are several things to consider first, such as early repayment fees.
Buying property to lease out? Then you’ll probably need a buy-to-let mortgage. These often come with high interest rates and may require a large deposit. Affordability checks and repayment schedules tend to be different for buy-to-let mortgages, so ensure you know the facts before applying.
With Experian, you can compare residential mortgages from across the UK market before you apply. It’s completely free, and it won’t affect your credit score.Compare mortgages with Experian