Making Uk Mortgages More Accessible

Making Uk Mortgages More Accessible



Making UK Mortgages More Accessible
Previously,​ in​ the​ UK,​ if​ you​ wanted to​ apply for a​ mortgage to​ buy a​ new home,​ the​ amount that would be lent to​ you​ would be automatically tied to​ how much money you​ earned .​
With runaway UK housing prices over the​ last decade,​ and with incomes remaining fairly stable,​ this method of​ calculating how much you​ could borrow on​ a​ mortgage has become out dated .​
Today,​ many new home buyers need to​ look for more creative ways to​ borrow money if​ they want to​ buy a​ new home in​ Britain.
The Affordable Mortgage
Probably the​ most common of​ the​ new forms of​ mortgage is​ the​ affordable mortgage .​
Unlike mortgage that fixed to​ your earnings,​ affordable mortgages are calculated based on​ how much you​ can afford to​ repay each month once you​ have taken into consideration all of​ your other expenses .​
So,​ for example,​ if​ you​ have recently bought a​ new car on​ hire purchase and will be making hire purchase payments for the​ next three years,​ these hire purchase payments will be deducted from your salary and what remains will determine whether or​ not you​ can afford to​ repay the​ mortgage loan .​
UK affordable mortgage loans have allowed new home buyers to​ borrow as​ much as​ 50 percent of​ their monthly disposable income in​ mortgage repayments,​ which usually gives new home buyers a​ much better chance of​ buying a​ new home.
The Flexible Repayment Mortgage
Growing in​ popularity is​ the​ flexible repayment mortgage .​
As mentioned,​ traditional mortgages take into account what you​ current earnings are,​ how much you​ borrow,​ the​ interest rate,​ and then calculates,​ roughly,​ a​ monthly repayment that will be fixed (variable on​ interest) for the​ remaining 20 to​ 30 years of​ the​ mortgage term .​
Real life,​ however,​ is​ not like that .​
It is​ highly unlikely that you’ll be earning the​ same in​ 10 years time as​ you​ earn today .​
a​ flexible repayment mortgage takes this into consideration .​
It allows you​ increase your mortgage repayments over time .​
As such,​ within parameters,​ you​ are able to​ borrow more on​ your UK mortgage than you​ earn today on​ the​ expectation you’ll be earning more in​ the​ future.
The Current Account Mortgage
Strictly speaking,​ the​ current account mortgage is​ not a​ mortgage at​ all – it’s an​ overdraft .​
As such,​ it​ is​ not restricted by the​ same lending ratio limits that traditionally apply when applying for a​ UK mortgage .​
Nonetheless,​ so long as​ you​ are financially disciplined enough not to​ be overly concerned with having to​ live with a​ large overdraft on​ a​ daily basis,​ this type of​ new UK home mortgage can mean the​ difference between being able to​ buy a​ house now and having to​ wait until you​ have enough of​ a​ deposit or​ a​ high enough salary to​ qualify for a​ traditional UK mortgage.
The world of​ UK consumer finance is​ forever evolving .​
To try and respond to​ recent demographic changes in​ the​ UK,​ and to​ ever rising costs of​ living in​ the​ UK,​ UK credit lenders are having to​ be more and more ingenious when it​ comes to​ obtaining new business .​
As such,​ if​ you​ find yourself in​ the​ position where you​ simply cannot afford to​ buy a​ new home on​ your current salary,​ don’t give up,​ look around and see if​ you​ can find a​ UK home lender who’ll agree to​ lend you​ the​ money to​ buy your new dream home on​ more flexible terms and conditions than was previously the​ case.




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