Utah Stonewall Democrats

Since a lot of people ask about different types of mortgages, it is a good idea to give a precise summary of advantages of each of them so that the information can help people understand the concepts and decide about the kind of mortgage that could supplement their needs’ fulfillment. 

Given below are the main and most common advantages of each type of mortgages: 

Interest only mortgages 

• It allows to pay off only interest for a set time period
• As it allows only interest payment, the borrower can use the opportunity to consider his options of paying off the mortgage
• Provides opportunities for salaried persons and pensioners alike
• Interest only mortgages are considerably more tax efficient than other mortgage types

Remortgages

• Remortgage allows the borrower to pay mortgage amount at a lesser interest rate
• Due to lesser interest rate on the mortgage amount, capital can be saved
• Remortgage allows stretching of the period of payment of mortgage
• Through remortgage, people can get a new mortgage with the same property as security

  Self cert mortgages

• Proof of regular detailed earning is not necessary
• People who don’t want to provide documentation of their incomes can use this mortgage
• Self employed people who don’t have documentary evidence of regular incomes can make use of the opportunity
• Very beneficial for people who work on commission-only basis

Self build mortgages

• Huge potential of financial yield
• Freedom to be able to make your own decision based upon your needs and requirements

This entry was posted on Sunday, March 9th, 2008 at 5:10 am and is filed under Finance and Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.