3.1.3 The mortgage market – rock-bottom rates
Buying a property, particularly your first property, usually involves taking out a mortgage – a loan secured against the home.
To guide you through what can seem like a maze of mortgages, here’s personal finance expert Jonquil Lowe to explain the six most common types. At the time of writing the rates on mortgage products are, like other forms of borrowing, at historically low rates. The availability of such cheap finance is one reason why house prices have seen such strong growth since 2010.
- Fixed-rate mortgage
- Variable-rate mortgage
- Capped-rate mortgage
- Offset mortgage
- Flexible mortgage
- Shared-ownership mortgage