What Type Of Mortgage Are You Looking For?

By Author: Carrie Aimes
Total Articles: 6
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You have finally decided that it is time to settle down and find a place to live. Or you are expanding your business and need an additional place to set up shop. Chances are that you cannot pay the whole amount in one go, without the help of a mortgage deal.

A mortgage is a type of loan that is used by individuals and businesses to make purchases of real estate where they do not have to pay the entire value up front. Basically the lender (in most cases this is a bank or a financial lender) will cover the cost of the property so that you can live in it, and you will have to pay the money back over a specific period of time with interest. Failure to complete payments to the lender will result in the property being foreclosed, and the bank taking over ownership. In this situation, the house or property is used as a guarantee in the dealings. There are several different types of mortgages available, here are a few:

• First-time buyer: If you are starting from scratch – this is ideal for you. These deals often have incentives attached such as cash back or lower fees. Sometimes lenders offer guarantor mortgages ...
... – this is where a parent or another responsible person guarantees the debt. Other deals include shared mortgage schemes – where friends group together to buy a house. There are also government schemes which help first time buyers find affordable housing schemes.

• Buy-to-let mortgage: Owning property for investment purposes is an excellent idea and several people consider this option. Basically, if you are looking at a property to rent out rather than as your own home, then you will need this type of mortgage. The lender will usually ask for a larger deposit, and ask that the monthly rental income exceeds the mortgage repayments that you will have to make.

• Commercial mortgages for individuals: If you are looking to purchase the property you are currently working at or for a new property to expand your business, then this mortgage is for you. These are loans for business purposes and are usually secured against the business premises. In some cases, a residential property may also be used as security. The repayment of this mortgage depends on the success of the business; therefore the rates and fees are higher than home mortgages as there is a higher level of risk involved.

If you are interested in buying a residential or business property via mortgage in Exeter, then you should consider the services of professional mortgage advisors such as Cooper Associates. There are several mortgage advisors in Exeter that provide excellent services for all needs.