Buying a house is everyone’s dream. Who doesn’t want to own a house? But, is it really affordable to own a house these days. You may need to put all your life savings at stake to build or buy a house. What about the person who doesn’t have enough money to buy or build a home for his family. Purchasing a home is not an easy task it needs much more money than we can afford. Mortgage service is the only option that can help him to buy his dream house. Mortgage services are nothing but the loan provided by the bank or other building society to purchase residential property.
These loans are provided based on different situation, to build a new home, buy a new home, or rebuild the existing ones. Below are different types of mortgages.
Variable Rate Mortgage: The major con of these mortgage services is the interest rates keep on change. It will never go to be stable. You may need to spend some from your savings too. Based on the market the interest rate keeps on increase mostly. These mortgage services come in different forms.
Standard Variable Rate: This is nothing but the interest that is charged by the lenders of the bank to the home buyers. These interest rates last until the end of the deal. These interest rates are not stable and they will change according to the market price and also the interest rates on the Bank of England.
Discount Mortgages: the mortgage service is nothing but the discount from the regular variable rate of the loan (SVR). This discount service extends only for a certain period of time. It will valid for two to three years. SVRs vary among borrowers, so be in a dilemma that if you the higher discount you will lower interest rate too.
Fixed-Rate Mortgage: People usually prefer this mortgage service as this one changes the same interest. Interest rate stays the same for typically between 2-4 years or 10 years in some instances. You will have a clear idea of how much you need to pay every month. It will be fixed and you can plan things accordingly. You can have peace of mind and pay your monthly instalment. The cons of this loan are interest rates are slightly higher and also the number of instalment months.
No matter what type of loan you may get for your home, make sure you get enough information from the bank agent or manager. Go through all the points mentioned during the loan. It is okay to ask them again instead of being in dilemma. Every bank has its customer care or agent number who will assist us in providing loans. Lothian Mortgage Services is one such company that will provide professional services to the customers.