Types of Non Conventional Mortgages Available in UK

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Types of Non Conventional Mortgages Available in UK
(presented by www.refinance-refinance.net - mortgage lenders)

By Richard Pettinger

1. Current Account mortgage. This type of mortgage is becoming increasingly popular. It works on the principle that your mortgage is held in the same bank account as your ordinary current account. If you have an influx of money into your current account it automatically reduces the size of your mortgage. Therefore you will be pay a lower interest rate. This is beneficial because the interest on mortgage payments is likely to be higher than the interest paid from a current account. A reason why people may dislike this type of mortgage is that it is intimidating to have such a big overdraft.

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2. Flexible Mortgages. Flexible mortgages allow people to pay variable amounts of monthly repayments. This is good for people who are self employed and have variable income patterns. However it does require discipline to pay more than the average monthly income. It could save money in the long run if it is used to pay off the mortgage early

3. Cash back mortgage. A cash back mortgage is similar to equity withdrawal. The main idea is that a mortgage is used to borrow cash against the value of the house. With a cashback mortgage a borrower takes out more equity than he needs to buy the house. This type of borrowing may be cheaper than borrowing on credit cards.

4. Self

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This entry was posted on Wednesday, January 3rd, 2007 at 7:05 pm and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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