What Type of Mortgage Should I Get?
The best type of mortgage for each homebuyer depends on their current financial circumstances. Several mortgages exist including:
- Low doc
- Bad credit
- Family pledge
Each mortgage has a purpose. Plus, it takes into account the homebuyer’s financial circumstances. First-time homebuyers have the most mortgages and resources available to them. For example, they can apply for a conventional mortgage if they meet the requirements. They can also receive support from their parents and apply for a family pledge or guarantor mortgage.
Before handing in the application, homebuyers must apply for the correct product. Otherwise, they risk receiving a rejection letter from the lender, which has consequences.
Homebuyers who can provide a 20% deposit and three months of payslips and bank statements might qualify for a conventional mortgage. It also helps to have a solid credit score. Those who cannot provide full financial documentation should apply for the low doc loan. Instead of requiring three months of payslips, homebuyers can provide alternative documentation such as business bank statements and a letter from their accountants.
Mortgage House loan specialists provide guidance so that each homebuyer applies for the correct mortgage. In addition, we offer several online resources such as our home loan calculator for free. Our resources help you pick the right mortgage product too.
The Best Type of Mortgage Conclusion
Sometimes the type of mortgage a homeowner should apply for is a decision made for them. A homebuyer’s financial circumstances will dictate the best option. To learn more about our Mortgage House products, contact our loan specialists.