The number of different mortgage types can be quite overwhelming for many people. So we've decided to compile an in-depth guide to the various different mortgage types available together with explanations of how they work and details of how Shire Direct may be able to help with that type of mortgage where appropriate.
So why not grab yourself a cuppa, relax, and enjoy our guide to the Different Mortgage Types explained and explore the options and possibilities that may be open to you!
Different Mortgage Types:
Table of Contents...
Welcome to our look at the various types of mortgage available, where we'll explain the various different mortgage types and types of mortgage rates and look at how we may be in a position to help you.
Just a quick note before we begin... It's worth bearing in mind that many of the different types of mortgage listed below can overlap. For instance an 'Adverse Credit Mortgage' can also be a 'Flexible Mortgage' product with a 'Cashback' feature! Also you may be interested to know that many of the mortgage types listed here apply to both mortgage and remortgage funding.
Please also note that this page is only intended to serve as an overview of the numerous different mortgage types. As such we have provided links to more detailed articles from within our Mortgage Glossary or elsewhere on our site on each type of mortgage wherever possible. These articles contain full details of that specific type of mortgage, how it works, any features it may have together with any applicable benefits, drawbacks and risks and other useful information - we highly recommend these articles for further essential reading on any mortgage type you may be interested in.
We are usually able to help with most of the different mortgage types listed here even if you have experienced problems such as CCJ's, defaults, arrears, personal bankruptcy, or are in an IVA (Individual Voluntary Arrangement), although there are some mortgage types we don't provide such as Endowment Mortgages (where this is the case we have clearly stated so).
Talk to Shire Direct, that's where we can really help! Our professionally qualified mortgage advisors will assess your circumstances, needs and requirements as well as your aspirations. We'll take you through the available options in a clear and easy to understand fashion and provide you with our recommendation and advice on the most suitable mortgage for you, together with an in-principle decision.
So, why not call us when you're ready on Freephone 08000 282 281 (seven days a week - from 8am until 10pm) and we'll be more than happy to discuss your requirements and discuss the options open to you, or enquire online at any time - it's quick and easy to do, and is naturally without obligation. In either instance we'll assure you of a friendly and non-judgemental welcome and provide you with a rapid in-principle decision - and we will be delighted to help in any way possible!
So, are you sitting comfortably? Then let's begin our look at the different types of mortgages and mortgage features that exist and how we can help!
This type of mortgage enables the borrower to borrow the full purchase price of their property meaning no deposit is necessary! This 100% Mortgage can obviously be useful to first time buyers or indeed anybody else who has struggled to save money for a house deposit.
For more detailed information on 100% Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our 100 Percent Mortgages page.
As with the 100% Mortgage, 125% Mortgage schemes allow the borrower to borrow the full purchase price of your property, but also allows up to an additional 25% to be borrowed (subject to a maximum of £30,000). So once again this type of mortgage can be especially useful for those who haven't saved enough cash for a deposit together with all the costs involved in purchasing a home. What's more, a Cash Reserve of up to £30,000 is immediately available on purchase if you need to borrow additional funds, perhaps to consolidate existing credit commitments, or maybe to carry out a modernisation or home improvement programme. Of course by doing so, you will not only improve your lifestyle, but you are also likely to increase the value of the your property.
For more detailed information on 125% Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our 125 Percent Mortgage Schemes page.
An Adverse Credit Mortgage is a type of mortgage product for those people who have experienced adverse credit difficulties such as a CCJ (County Court Judgement), Arrears, Defaults, Bankruptcy or an IVA. Here at Shire Direct we appreciate that not everything in life is straightforward and that many people encounter difficulties with their finances at one point or another, often through no fault of their own, and we're able to offer a range of schemes from our mortgage portfolio to help those who have experienced credit difficulties.
So if you've experienced credit difficulties why not get in touch to see how we can help, you'll find a warm welcome awaits you, we'll consider your requirements sympathetically and in a non-judgemental manner! For more detailed information on Adverse Credit Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Adverse Credit Mortgages page.
An Agricultural Restriction mortgage is a home loan specifically designed to help if the property you are looking to purchase has an Agricultural Restriction applied to it. In legal terms, an Agricultural Restriction is a freehold covenant that restricts the occupancy of the property to people whose main occupation is agricultural, or who were formerly in some form of agricultural occupation such as farming or forestry.
For more detailed information on Mortgages for properties that have an Agricultural Planning Restriction freehold covenant on them together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Agricultural Restriction page.
Bad Credit Mortgages are lending facilities for those borrowers who may be seen as having bad credit problems, such as Arrears, Defaults or CCJ's, or even more serious issues. Bad Credit Mortgages are sometimes referred to by a number of different names such as Adverse Credit Mortgages, Impaired Credit Mortgages, Poor Credit Mortgages and Sub-Prime Mortgages, essentially they are all one and the same and serve to help those who have experienced credit difficulties obtain this type of specialist mortgage or remortgage funding. The rates charged tend to be marginally higher than those available through conventional high street outlets, and are reflective of the higher risk involved to the lender.
[See High Street Bank Mortgages]
Whilst it's not possible to obtain a mortgage for purchase through the duration of your bankruptcy, which is nowadays usually a period of around 12 months, we can usually help with a remortgage to pay off your bankruptcy ahead of schedule. Those who have been discharged from their bankruptcy and are seeking to obtain a mortgage for purchase may find themselves having to pay a deposit of around 10-15% of the property value.
The Base Rate Tracker mortgage is a type of variable rate mortgage whereby the interest rate 'tracks' either the Bank of England Base Rate, or the lenders own Base Rate, plus a margin. Thus current market trends are likely to affect the interest charged on your mortgage account.
For more detailed information on Base Rate Tracker Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Base Rate Tracker Mortgages page.
Quite simply Building Society Mortgages are mortgages from Building Societies such as the Coventry Building Society, or the Nationwide Building Society for instance. The Building Society movement was until the 1980's the traditional source of the bulk of the UK's home loans, and although building societies represent a much smaller share of the marketplace these days, they remain an important player in the provision of competitively rated mortgage products.
The Building Societies are of course mutual organisation's, and run for the benefit of their members, and not for shareholders. Although the rates are competitive when compared against the standard variable rates of the mortgage banks, to a large extent, they remain inflexible when it comes to dealing with applicants who may have experienced credit difficulties such as a CCJ, Arrears or Defaults. The Building Societies are reluctant to accept borrowers who have experienced these kind of difficulties, and can also have very strict requirements when it comes to self-employed borrowers, and will usually demand a full accounting profile of a minimum three-year's audited accounts showing healthy Net Profits!
On the other hand, Shire Direct have managed to develop within its portfolio, an extensive range of mortgage lenders whose aim is to help fund mortgage propositions - even in the trickiest of circumstances. And so we are able to help provide unique tailor made mortgage solutions in situations where Building Societies may not be able to help!
The Buy to Let Mortgage is for those borrowers who wish to buy a property on the basis of renting it out to tenants on a commercial basis as opposed to living in it themselves. Shire Direct can help with both mortgage and remortgage funding on a buy to let basis, either on single units or a portfolio of properties.
For more detailed information on Buy to Let Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Buy to Let Mortgages page.
A Capital Repayment Mortgage is one of the two types of Mortgage payment methods, the other being an Interest Only Mortgage. Capital Repayment Mortgage types are designed to repay both the capital (or principal sum) borrowed and the interest charges on the mortgage over the selected length of the mortgage, typically a 25 year period. Monthly instalments will contain both a portion of capital repayment, and a portion of the interest charged.
In the early years of the mortgage term, this mortgage type will see the borrower repaying a smaller amount of capital, and a larger amount of interest, but as the years progress in their mortgage term this trend will reverse, seeing the borrower repaying more in capital and less in interest.
For more detailed information on Capital Repayment Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Capital Repayment Mortgages page.
In the most simplistic terms, a Capped Rate Mortgage is a combination of both a Fixed Rate Mortgage and a Variable Rate Mortgage, and ostensibly it provides the best of both worlds! This is because the Capped Rate Mortgage provides a fixed ceiling on the amount of interest you pay thereby guaranteeing the interest charged on your mortgage borrowings over a predetermined preferential period of your mortgage (typically in the region of 2 to 5 years) will never exceed a certain rate - the cap. However, if interest rates fall during the preferential-rate period, so will the interest you pay in line with the variable rate.
For more detailed information on Capped Rate Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Capped Rate Mortgages page.
With a Cash Back Mortgage, the lender refunds the borrower with a cash lump on completion of the mortgage, and the amount of cash back can be up to 10% of the mortgage borrowed! This can obviously be quite a useful facility for first-time home buyers for example, and may help them with the attendant costs of a mortgage, or where the borrower may wish to undertake a home improvement programme.
Whilst in the appropriate circumstances a Cash back Mortgage can be very useful, caution should be exercised before rushing ahead with a Cash Back Mortgage scheme as the lender will need to tie the borrower in to the mortgage product (known as a Mortgage Tie-In or Lock-in), and this could be as long as 5 to 10 years, depending on the amount of the original cashback. As a result, any applicable Early Repayment Charges (ERC's) if the borrower wishes to switch their mortgage could be large.
For more detailed information on Cashback Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Cash Back Mortgages page.
CCJ Mortgage is a term used for mortgage funding where the borrower has one or more County Court Judgement (CCJ's). A CCJ is the result of civil action for the recovery of debt by a creditor in the County Courts. The registration of a CCJ or CCJ's against an individual can make life difficult when it comes to getting a mortgage through more traditional lending sources such as High Street Banks and Building Societies. However, with Shire Direct, we have a range of specialist mortgage schemes available that are designed to accommodate people who have experienced credit difficulties like CCJ's (whether they're satisfied or unsatisfied), and indeed other credit difficulties such as Arrears, Defaults, Bankruptcy and IVA's.
For more detailed information on CCJ Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our CCJ Mortgages page.
Council Right to Buy Mortgages allow Council Tenants to achieve homeownership by enabling them to purchase their council homes. Whilst the requirements for these schemes vary depending on the area you live in, most council tenants who have occupied the council property they live in for a period of 5 years or more have the right to buy their homes from the council at a discount price.
For more detailed information on Council Right to Buy Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Council Right to Buy page.
Defective Housing is a term used for a small number of properties in the United Kingdom that are deemed as being of non-standard construction under the 1984 Housing Defects legislation. Here at Shire Direct, we are able to assist with mortgage, remortgage, and right to buy funding where other more traditional lending sources may not be able to help.
For more detailed information on Defective Housing Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Defective Housing Mortgages page.
Discharged Bankruptcy Mortgages are a type of mortgage facility designed to assist those borrowers who have experienced a personal bankruptcy from which they have now been discharged, i.e. they have have served their bankruptcy period - typically around 12 months. So, if you've been discharged from your bankruptcy and require mortgage or remortgage funding talk to us, as we can usually help!
For more detailed information on being Discharged from Bankruptcy and the mortgages available for Discharged Bankrupts together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Discharged Bankruptcy page.
This type of mortgage is a variation of the Standard Variable Rate (SVR) mortgage. It offers the borrower a discount from the lender's SVR for a fixed period of time, for example 2% discount for 3-years. This means that the borrower will benefit by a reduced rate of 2% being applied to his interest charges for the first 3-years, and represents a total give away of 6%.
For more detailed information on Discount Rate Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Discount Rate Mortgages page.
Drawdown Mortgages or the mortgage Drawdown facility to be more precise is usually a feature associated with Flexible Mortgages. Here the borrower has an option to borrow additional funds up to a pre-agreed level at a later stage during the term of their mortgage without having to go through all the formalities of a further application for borrowing.
For more detailed information on Drawdown Mortgages and the Mortgage Drawdown facility together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Drawdown Mortgages page.
Endowment Mortgages were a once very popular type of invest-to-repay mortgage conceived in the 1960's, and was based on an interest only mortgage payment, linked to an endowment mortgage. The basis was that the endowment would provide the borrower with inbuilt life cover, and that the investment element would be geared to repay the mortgage balance at the end of the selected mortgage term. However, the endowment became discredited when investment yields failed to meet the amounts necessary to repay the capital balance, and as a result, this left many borrowers unable to repay their mortgage balance at the end of the term.
For more detailed information on Endowment Mortgages together with any associated features, benefits and drawbacks then why not take a look at our Endowment Mortgages page. Please note we can't help arrange an Endowment Mortgage, we can however help if you have an Endowment Mortgage and would like to know your options.
Equity Release Mortgage Schemes allow homeowners who have reached retirement age to release and borrow funds from the equity in their home. There are three main types of Equity Release schemes.
For more details on Equity Release Mortgages together with any associated features, benefits, drawbacks and risks, and how Shire Direct can help, then please take a look at our Equity Release section.
First Time Buyers have a number of different options when it comes to getting a mortgage and getting on the property ladder, such as:
At Shire Direct we'll help you to choose your mortgage product carefully after assessing your needs, circumstances and requirements and will ensure that you are appropriately protected against the unforeseen. We provide a comprehensive and detailed service, our Mortgage Advisors being professionally qualified, ensuring you receive the professional standards and expert advice you need to help you through the mortgage maze for the first time.
For more detailed information on the options available for First Time Buyers and how Shire Direct can help, take a look at our First Time Buyers section.
A fixed rate mortgage is simply a mortgage whereby the interest rate is fixed for a specific period of time, such as 2 years or 5 years.
For more detailed information on Fixed Rate Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Fixed Rate Mortgages page.
Flexible Mortgages are simply that, flexible! They are modern mortgages designed for modern day living, and can include numerous features including options to allow the borrower to make overpayments, underpayments, take repayment holidays, borrow back overpayments, drawdown additional funds up to pre-set limits and pay lump-sums off the capital balance.
For more detailed information on Flexible Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Flexible Mortgages page.
Group Mortgages, also referred to as Friends Mortgages and Mates Mortgages have become increasingly popular in recent times, mainly due to the astronomic rise in house prices in certain areas. It's become virtually impossible for single people now to be able to buy a property, especially in London and other areas where house prices are very high! So first-time home buyers increasingly have to join forces and present joint applications in order to get on the property ladder. It's not uncommon to see up to four borrowers of friends and/or family amalgamate their resources to buy a property.
Guarantor Mortgages are a type of mortgage usually used in circumstances to help first time buyers get on the housing ladder. They work by appointing a 'Guarantor' to the mortgage (typically a parent or guardian) who will be legally responsible for mortgage repayments in the event the main borrower defaults on their mortgage payments. The Guarantors own income may be taken into account upon mortgage application by some lenders to help boost the applicant's borrowing power and help them on to the housing ladder.
For more detailed information on Guarantor Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Guarantor Mortgages page.
High Street Bank Mortgages are simply Mortgages from High Street Banks such as Barclays, Lloyds TSB, NatWest, HSBC and the Royal Bank of Scotland to name but a few. Experience shows that the banks are less likely to be sympathetic or accommodating when it comes to advancing funds to those who may have experienced credit difficulties or have unusual circumstances or requirements that are slightly out of the ordinary.
That's why it makes sense to call us here at Shire Direct! We have designed our lending portfolio to accommodate all types of circumstances and requirements and our lending panel includes High Street Banks, Building Societies and specialist mortgage lenders providing a range of mortgage plans to suit "all-circumstances".
The Home Equity Release Mortgage (HERM) is a type of Equity Release scheme available to borrowers who have reached a certain minimum age (usually 55 years old) and allows the homeowner to release a proportion of the equity in their property as a loan which is secured over their property - without ever having to make a repayment.
For more detailed information on Home Equity Release Mortgages (HERMS) together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Home Equity Release Mortgages page.
An income multiplier is the yardstick by which some mortgage lenders gauge the maximum level of borrowing they are generally prepared to advance on mortgage to a borrower and is based on a multiple of the borrower's income.
It's important that you should only borrow what you can comfortably afford to repay, so we recommend for more detailed information on Income Multiplier Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, you should take a look at both our Income Multiplier Mortgages page and our Mortgage Affordability page.
Income Stretcher Mortgages are those that are based on more generous income calculations than those that may be available as a standard. Traditional income multipliers have provided for 2.5x or 3x the main earner's salary plus 1x the co-applicants salary. However, modern day pay structures are often based on small salaries, but may be boosted several times by some form of profit-related pay.
Accordingly, our Mortgage Advisors will, wherever necessary search for the optimum income calculator to match your needs, whilst carefully ensuring your repayment remains comfortably affordably, now and into the future.
For more detailed information on Income Stretcher Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Income Stretcher Mortgages page.
Interest Only Mortgages are one of two types of mortgage payment methods, the other being a Capital Repayment Mortgage. With an Interest Only Mortgage the original amount borrowed will remain the same throughout the mortgage term. This is because the monthly payments will cover interest charges only, and so at the end of the mortgage term, the capital sum borrowed will remain outstanding. Interest only mortgages will usually have an investment product run alongside them, such as an Endowment policy, Pension Plan, ISA or some other type of long-term saving plan that is designed to repay the capital element of the mortgage repayment at the end of the term.
For more detailed information on Interest Only Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Interest Only Mortgages page.
ISA Mortgages are a type of investment-linked mortgage product whereby the borrower pays only interest on their mortgage account, with the aim the Individual Savings Account will have accumulated sufficient funds to repay the mortgage principal by the end of the term.
For more detailed information on ISA Mortgages together with any associated features, benefits, drawbacks and risks then visit our ISA Mortgages page. Please note that Shire Direct do not arrange ISA Mortgages or other Investment linked mortgages, but thought you might find this information helpful.
IVA Mortgages are mortgages for borrowers who:
An IVA is a legally binding agreement between the borrower and their creditors to help those in financial difficulties manage their debt. We have a range of specialist mortgage lenders in our lending portfolios to help with mortgage and remortgage funding to help people with IVA-related funding requirements. We are also able to refer you to professional debt practitioners who will advise you on the most appropriate course of action for you to take.
For more detailed information on IVA Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our IVA Mortgages page.
Let to Buy Mortgages are mortgage products that have been designed to help those borrowers who need to move home quickly, often because of employment requirements, although are experiencing difficulty in selling their home. Under the Let to Buy scheme, the borrowers let their existing property to tenants, and provided that the income from letting's covers the mortgage, they are then able to purchase another property on normal terms, i.e. at up to 95% or even 100% LTV.
For more detailed information on Let to Buy Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Let to Buy Mortgages page.
Lifetime Mortgages are a type of Equity Release scheme where the borrower can release a proportion of the value of their home by way of either a tax-free cash lump sum, or a tax-free regular income, or a combination of both. The borrower always retains ownership, and never has to make another mortgage payment!
For more detailed information on Lifetime Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Lifetime Mortgages page.
Low Start Mortgages (or Deferred Interest Mortgages) were very popular in the 1980's as property prices started to increase in the boom years! The advantage was that the borrower paid a repayment that was geared to a deferred interest rate, which was artificially lower than the current market rate. However, the repayment was not reflective of the interest being charged to the mortgage account. The interest deferment was usually over a period of 3, 5 or 7 years, e.g. a five year deferred mortgage would probably be referred to as a "5-4-3-2-1". This meant in the first year the interest was deferred by 5%, 4% in the second year, 3% in the third year, 2% in the fourth, and finally 1% in the fifth year.
This meant that a huge amount of deferred interest was continually being added to the mortgage balance, and at the end of the deferred term the capital balances had been increased by up to 50%. Understandably, this type of arrangement was subject to major misunderstandings resulting in widespread negative equity situations.
Shire Direct do not arrange Deferred Interest Mortgages. We believe there are more appropriate solutions these days that we can help our customers with, so why not get in touch to see how we could help you!
For more detailed information on Low Start Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help with more suitable alternatives, then why not take a look at our Low Start Mortgages page.
Near Prime Mortgages have been introduced for customers who may have encountered a minor "blip" on their credit record, which is not considered by the lenders as being sufficiently adverse to refer the borrowing requirements of the customer to the more adverse credit mortgage products. The circumstances considered as qualifying for Near Prime rates will vary from lender to lender, but typically might be:
No Deposit Mortgages do what it says on the tin!
A No Deposit Mortgage is a mortgage for purchase where the borrower doesn't have to provide a deposit! This may be because a lender is prepared to advance a 100% mortgage, or even a 125% mortgage. No Deposit Mortgages are generally restricted to those borrowers who can fully evidence their income, and who do not have any adverse credit registered against them.
Non Standard Construction Mortgages are a type of mortgage available to help those who may have a property that is deemed to be of non-standard construction. These include a whole host of concrete-constructed properties, pre-cast reinforced construction, concrete panels, steel-framed, and wooden framed properties.
Traditional high street lenders are invariably reluctant to advance mortgage facilities on these type of properties, as are many centralised lenders. However, there are a small number of specialist mortgage lenders who will consider funding even the most unusual of constructions, and our portfolio, as you would expect, contains specialist mortgage lenders to help!
For more detailed information on Non Standard Construction Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Non-Standard Construction Mortgages page.
A Non Status Mortgage is a term used for types of mortgage products that have been designed to accommodate those borrowers who may have experienced credit difficulties, such as a County Court Judgement, Defaults, Arrears, Bankruptcy or an IVA. They also provide funding for self-employed customers who may have difficulty demonstrating their income through conventional methods, such as the provision of accounts or payslip's.
Shire Direct have an extensive portfolio of Mortgage schemes designed to accommodate most situations and can indeed help with non-status mortgages, so why not get in touch today, we'd love to hear from you!
For more detailed information on Non Status Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Non Status Mortgages page.
The Offset Mortgage is a very sophisticated innovation in the mortgage market place. Once referred to as a Cheque Book Mortgage, today's modern off-set mortgage combines not only your mortgage account, but also a savings account and a current account all into one. This set-up enables the borrower to have their monthly mortgage interest reduced by offsetting their savings and current account balances against the mortgage.
For more detailed information on Offset Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Offset Mortgages page.
Poor Credit Mortgages is an expression used for a type of mortgage available to those who currently have or have had poor credit, and this could include Defaults, Arrears, CCJ's, Bankruptcy, or an IVA. Happily Shire Direct have a wide array of different mortgage schemes to help accommodate those requiring mortgage or remortgage funding with poor credit.
For more detailed information on Poor Credit Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Adverse Credit Mortgages page.
A Portable Mortgage is a type of mortgage where, provided the borrower has maintained a good repayment track record, and can evidence sufficient income to cover the appropriate borrowing levels, the customer can transfer (or port) their mortgage to another property when they move home, free from any penalties. This is especially useful if Early Repayment Charges would have applied, or where the customer may have a long-term fixed rate product, that is no longer available at such advantageous interest rates.
For more detailed information on Portable Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Portable Mortgages page.
A Prime Mortgage is the term used for mortgage funding where the customer meets or exceeds the lender's criteria. In other words the type of borrower who will generally qualify for a Prime Mortgage will have no problems in life, and will have no adverse credit registered against them, and will be able to demonstrate that they have sufficient income to meet the lender's criteria. As a result, they are considered low risk, and will attract the most competitive (prime) mortgage interest rates.
A Remortgage is quite simply the act of changing from one mortgage lender to another, or from one mortgage plan to another. This could be for a number of reasons including to change to a better interest rate and save money, to refinance existing debts, or to carry out home improvements.
There are other reasons too, so for a more detailed look at Remortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Remortgages section.
[See Council Right to Buy Mortgages]
A Second Charge Mortgage, more commonly referred to as either a Secured Loan, or Homeowner Loan, is one of the many borrowing facilities available to the homeowner or mortgage payer. The loan is secured by way of a Legal Charge on the security of your home, and is effectively a second mortgage. There are several instances where a borrower should consider, or be advised to take a secured loan in preference say to a remortgage.
There are a variety of reasons why a Homeowner Loan may be a more suitable borrowing option so why not take a look at our Homeowner Loans section for a more detailed look at any associated features, benefits, drawbacks and risks, and how Shire Direct may be in a position to help.
Self Certification Mortgages are a type of mortgage facility that are primarily aimed at self-employed borrowers who may have difficulty in proving their income by way of a traditional accounting profile, which will usually involve the provision of three years audited accounts, that show an average Net Profit that meets the lender's income multipliers.
For more a more detailed look at the specifics of Self Certification Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, we recommend you visit our Income Self-Certification page.
A Shared Equity Mortgage is a type of mortgage that is designed to help 'cash-strapped' first time homebuyers get a leg up onto the property ladder. With a Shared Equity mortgage plan, the borrower will take a large share of the property being purchased, typically between 75-95% of the market value, whilst the remaining share will be taken by one of the following stakeholders, whose share in the property will remain until the property is sold:
For more detailed information on Shared Equity Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Shared Equity Mortgages page.
Shared Ownership Mortgages are a type of specialist mortgage scheme, and are designed to help those who are currently tenants of Housing Associations get on to the property ladder, on a part-buy, part-rent basis. In these circumstances, the tenant acquires a right to buy a share of the property, usually 25%, and pays rent to the Housing Association on the remaining 75% share. Over time, the borrower will have the opportunity to purchase the remainder of the property (usually in 25% blocks) until the borrower eventually achieves 100% homeownership. This process is known as 'staircasing'.
For more detailed information on Shared Ownership Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Shared Ownership Mortgages page.
Standard Variable Rate Mortgages refers to a type of mortgage product whereby the borrower is charged interest on their borrowings at lenders standard variable rate. This is a no-frills mortgage, and does not contain features such as fixed, discount or capped preferential periods. The SVR is the most basic of all general mortgage plans. The SVR is usually influenced by changes in the Bank of England Base Rate as well as general market trends.
For more detailed information on Standard Variable Rate Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Standard Variable Rate Mortgages page.
Stepped Interest Rate Mortgage products are generally either fixed or discounted for a pre-determined length of time. however, the twist here is that the amount of discount, or the fixed rate is not constant throughout the preferential period (usually the first 3-years). The rate charged may either rise or fall on a staggered or stepped basis during the initial period of the loan for example:
Year 1: 4.5% Fixed; Year 2: 5.0% Fixed; and Year 3: 5.5% Fixed; or
Year 1: 3% Discount; Year 2: 2% Discount; Year 3: 1% Discount from the lenders SVR.
For more detailed information on Stepped Rate Mortgages together with any associated features, benefits, drawbacks and risks, and how we might be able to help, then why not take a look at our Stepped Rate Mortgages page.
Sub Prime Mortgages are those mortgage products that have been designed to help borrowers whose personal and financial circumstances are considered to be below prime, and possibly a marginally higher risk to the lender. Sub-prime is more of a term used from within the mortgage industry as opposed to one that a consumer might use. However, we thought it would be useful for you to know what the phrase means should you come across it.
Sub-prime circumstances may include a variety of credit difficulties such as County Court Judgements, Arrears or Defaults as well as more serious issues such as Bankruptcy and IVA. If you find yourself falling into one of these categories for whatever reason, you'll be pleased to know that our portfolio of mortgage plans are geared to accommodate most circumstances and requirements.
You'll find our service to be professional and discrete, helpful and caring, and not at all judgemental or stuffy! If you need to discuss your circumstances and requirements in confidence, our qualified mortgage specialists are available 7-days a week until 10.00pm. So why not call us now - you'll be glad you did!
[See Base Rate Tracker Mortgages]
[See Standard Variable Rate Mortgages]
So, when it comes to mortgage repayment methods, what different types of mortgage repayment method exist and which can Shire Direct help with?
Well there are a few different types of mortgage repayment methods including Capital Repayment mortgages, Interest Only mortgages, ISA mortgages and Endowment mortgages, all of which we've discussed in more detail in the section above, and their more detailed Glossary page counterparts where appropriate. Just to clarify Shire Direct do not arrange ISA Mortgages or Endowment Mortgages, although we are able to assist if you have an Endowment Mortgage and are seeking a more suitable solution.
Well, we hope you have found our guide and explanation of mortgage types to be useful. Don't forget we're here to help, so why not talk to us about your requirements. So call us today on Freephone 08000 282 281 (lines open between 8am to 10pm everyday), or if you prefer enquire online at any time, naturally without obligation. We'd love to hear from you and will be delighted to help in any way we can.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Problems finding your way around the mortgage maze? It's understandable with jargon such as...
To make life easier we've produced probably the best Mortgage Glossary ever! With over 200 detailed definitions, explanations, and step-by-step guides covering all aspects of mortgages, remortgages, loans and property related terms, as well as solutions as to how we can help!
Why not take a look! We think you'll find it useful!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
