London, United Kingdom (PressExposure) February 25, 2012 -- WhatHouse property website specialises in being a portal for new homes and developments around the UK. With the current economic crisis it is very difficult for first time buyers to get a mortgage. There are various options backed by the UK Government to enable new home owners to try and get on the housing ladder, including shared equity schemes and rent to buy schemes, where the government and house builder give the first time buyer a second loan so that they do not need to get as large a mortgage or deposit from a traditional lender.
WhatHouse.co.uk property portfolio already offer information on these schemes as well as details of house developers that are part of the scheme. But recently WhatHouse have launched a dedicated mortgage webpage as part of their successful website. This is not only aimed at first time house buyers, but also house owners looking to switch mortgage providers or just a prospective borrower searching for information on the product that best meets their requirements.
There are far fewer loans available now to home buyers and much stricter borrowing requirements as well as larger deposits needed and lower loan amounts, so it is not always easy to find the option right for you. Various mortgage options are available to the new home buyer or someone looking to switch mortgage lenders for example fixed rate mortgages, interest only mortgages and tracker rate mortgages. In general there are two main types of mortgages; repayment mortgages where the borrower pays off a certain amount of the loan each month as well as the interest, so that by the end of the loan period, all the mortgage as well as all interest is paid off. Or there is the interest only mortgage where each month, the borrower only pays off the interest every month and at the end of the loan period, the amount of the loan is still outstanding. Usually this requires some form of investment vehicle or life insurance policy to run for the period of the loan so that at the end this can be enchased and pay off the loan.
As well as deciding whether an interest only or a repayment type mortgage is the best option, there are various different types of interest rate deals available from a standard variable rate which can go up or down, discounted interest rate periods and tracker rate mortgages. It can be very confusing to the new buyer and this is why it is important to take independent financial advice on which mortgage is the most appropriate. Some house buyers prefer the security of a fixed rate mortgage so they know exactly what they have to pay each month, where as younger first time home buyers may prefer a package offering no set up fees and a lower mortgage rate for the first year or two.
All borrowers should compare the products on the market and the new WhatHouse Mortgages page lets you do this as well as request a call back from a professional mortgage advisor and get a house valuation so you know how much you can re-mortgage for.