Online Mortgages

An online mortgage is the same as a conventional mortgage except the process if carried through the use of the Internet. The application, approval and the borrowers credit history can all be submitted and checked by the mortgage lender online with only the contract needing to be signed in person.

An online mortgage isn’t like most other types of loans as the house that you propose to buy is used as security. The lender actually buys the property outright from the seller, and you then buy the house from them on a month by month basis, a typical condition of mortgage repayments. However, the lender will generally provide you with a loan that is a specified percentage of the property’s value, as well as including interest charges on your monthly repayments.

Internet Mortgages

The likelihood for a new homeowner to secure a mortgage on a property is extremely difficult these days. House prices have seen a constant rise over the last few years and banks, building societies and other forms of lenders have had to come to a compromise with the borrower. They have had to restructure their calculation process for the maximum financial aid a new home buyer can be given. Originally, the borrower’s annual salary was multiplied by three but in today’s property market this would still leave prospective home owners short of the asking price. Therefore, you can now find mortgages that are either four or five times the borrower’s salary. With longer repayment periods, and competitive interest rates, home buyers once again have a better opportunity of securing a property.

With such a large choice of mortgages on offer from an array of different lenders through the Internet, finding the right mortgage for your circumstances can be confusing. Although, provided you can raise the down payment required, and can prove that your income can meet the mortgage repayments stipulated in the contract, the arrangement of a mortgage can be fairly easy and straight-forward process to complete.

Mortgage Types

There are a wide variety of mortgages available, and surfing online can find you the right information and the best deals in the financial arena. Though, deciding on which one to go for can be difficult and, most importantly, costly. Our experts have devised a list below to show what the most popular choices are at the moment for home buyers around the country:

100% Mortgages - the lender will provide you with 100% or more if you have no deposit but rates and fees will be higher than normal.

Adverse Credit Mortgages - intended to help those who have poor credit histories.

Base Rate Tracker Mortgages - this product follows the Bank Base Rate set by The Bank of England.

Buy-to-let Mortgages - a mortgage designed for the purchasing of a property in order to let privately.

Capped Rate Mortgages - the interest charged will not go above a set maximum for the period of the cap.

Cashback Mortgages – you are provided with a cash lump sum on completion of the mortgage.

Current Account Mortgages (CAMs) - all of your finances are run through a single account to provide maximum efficiency.

Discounted Rate Mortgages - your monthly repayments are reduced from the start of the mortgage for a set period of time as the standard variable rate is discounted by the lender.

Fixed Rate Mortgage - throughout the agreed period of the loan the initial rate remains the same i.e. each month you pay the same amount for the agreed period.

Flexible Mortgages – allow overpayments, underpayments and payment holidays to be made as and when you want. Large savings can be made as the interest is calculated on a daily basis.

Non Standard Mortgages - intended for borrowers that have poor credit histories and need to make an extremely large deposit.

Offset Mortgages - your borrowings is offset against your savings, so you only pay interest on the reduced sum.

Variable Rate Mortgage - the interest rate goes up and down, dictated by the lender, with your monthly repayments changing accordingly.

Ensure that you check the interest rate on your chosen mortgage is what you have agreed throughout the entirety of the loan and not just a special introductory rate that will change after a set period of time. Also, as the terms of many mortgages will vary between lenders, enquire if there are any penalty fees for making early repayments, paying off the entire mortgage earlier than agreed or switching mortgages to another lender.