The House Hop Guide to Mortgages

Mortgages for Specific Buyers

First Time Buyers

There are a wide range of mortgages on offer for first time buyers. Typically they allow a buyers to borrow up to 90% of a property's price — more than most standard mortgages allow, though typically at a higher rate.

Re-Mortgage

Re-mortgaging could save you hundreds if not thousands each year. It's your chance to shop around for the best the market has to offer you.

Reducing your interest rate by 1% will cut your mortgage costs by at least £60 a month for every £100,000 that is outstanding. The less time there is left to run on your mortgage the more you will save.

Self-Certified

Self-certified mortgages are designed for people who are self-employed or whose earnings are irregular, such as seasonal workers and those working on a commission basis.

Because self-certified mortgages are seen as carrying greater risk, lenders will typically charge a higher rate of interest and may ask for a larger deposit.

Buy-To-Let

Buy-to-let mortgages are available for buyers who intend to use the property for rental purposes. Typically, lenders will expect a buy-to-let landlord to put down a deposit of 25% of the value of the property.

Adverse Credit

Adverse credit mortgages, also known as sub-prime mortgages, are for people with a poor credit history such as those with previous mortgage arrears, rent arrears or County Court Judgements (CCJs) against their names.

Because of the greater credit risk associated with sub-prime borrowers the rate of interest charged is likely to be significantly higher than for a standard mortgage. The worse a person's credit rating the more interest they will be charged.