Loans fuel the dreams. Any dream, it may be your house or a vacation trip or even a marriage. Loans are there to fulfill your dreams and simultaneously secure you from setbacks. The economy of UK has gone from strength to strength and is one of the safest destinations to invest in any sector. If you are taking a Mortgage Loan in UK then you need not have to worry about since when economy goes strong then over time the rates of the property surges and you can definitely refinance your mortgage loan.
Types of Mortgage Loans in UK
Mortgage loan market in UK is one of the evolved markets in the world. Since it has the least state intervention this makes them more unique to operate. The mortgage institution can apply innovative strategies to market and also quaint methods to offer loans.
Mortgage Loans in UK are basically divided into four types like
* Constant Interest Rate: where the interest rate remains constant for a particular period. If one is going for longer periods then it is bound to cost him more.
* A capped rate: It is more or less similar to the fixed rate, where the interest rate cannot rise above the cap but can vary beneath the cap. Capped rate are often offered over periods similar to fixed rates.
* Discounted rate: In the standard variable rate there is a margin reduction for a set period; typically 1 to 5 years.
* A cash back mortgage: Lump sum is provided as a percentage of the advance.
Mortgage Loan process in UK.
There is a practice by the UK lenders to survey the property by the chartered surveyor. This is done partially to access the property is worth to cover the mortgage amount. For this survey they charge a valuation fee. But if you are thinking that this is an all an all detailed survey wherein you can know each and every defects of the house then let me tell you that is a partial survey only tentatively done to access the worth. Also point to be noted that there is no contract between the surveyor and the buyer.
The strong foundation of the institution has insulated it from any breakdown. This is the sole reason why it has overcome the setbacks of the sub prime crises. UK economy is known for its sagacity. The Mortgage loan institutions have an astute discernment to operate and this is the underline factor that today UK has the strongest banking foundations in the world.
