With the ever growing population and influx of more and more people to the UK from all around the world the housing sector is witnessing a significant growth. There are a large number of people who want to buy their own houses. The people who have recently migrated to the UK for professional reasons want to settle down in the country. Also, there is a large chunk of people who are living in rented houses. Almost all of these people want to buy houses. But on the flip side they dont have enough money to buy a new house. So if you are thinking of buying a house but lack money, mortgage loan is the solution for you.
Mortgage loans are those loans that are used to purchase a house. The house itself is kept as collateral to the lender. As a mortgage loan is provided to you against collateral, the interest rates are kept low. There is flexibility in the monthly installments paid by you. You can also choose whether you want a long repayment period or a short one.
Also, a short loan period say, 20 years or 15 years, can save you a hefty amount in interest payments over the life of the loan, but your monthly payments will be higher in this case. It is seen that a larger down payment greater than 20% - will give you the best possible rate. Down payments of 5% or less are charged with higher rate as you are starting with less equity as collateral.
As the mortgage loans are basically secured loans by nature, the borrowers are at high risk. Their house can be repossessed in case of default in payment. Lenders are at low risk as they have the house with them as collateral.
Though it is difficult for people having a bad credit record to get a mortgage loan, there are many finance companies that provide mortgage loans to people with bad credit past. But, in such a case the interest rates are kept high and the lenders keep constant vigil on the borrower. Many finance companies in UK provide mortgage loans for people who are willing to buy a house. You just need to fill up an online application and your loan is available within a few hours.
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Shakespeare Finance as a finance specialist.
For more information visit our site http://www.top-mortgage-loans.co.uk