Short term mortgages
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Short term mortgages
A short term mortgage is typically considered anything less hen 15 years. Remember though, if you are on a repayment mortgage with a short term mortgage then your monthly payments may be a lot higher depending on the loan amount.
Its good practice to speak to a mortgage broker who is able to compare a variety of products for you.
Can you get a short term mortgage?
If you meet the lenders criteria then you can get a short term mortgage. You must keep in mind that shorter the mortgage term then higher the monthly mortgage payment. You must be able to afford the monthly mortgage payments in order to borrow the loan amount that is required.
Short or long term fixed mortgage?
Short term mortgages come with higher monthly mortgage payments compared to long term mortgages however short term mortgages do work out cheaper as you pay less interest overall compared to a long term mortgage.
While long term mortgages work out more expensive them shorter term mortgages, they do provide you with a lower monthly mortgage payment.
There are many reasons why you would want either a short term mortgage or a long term mortgage and the 2 main components that would decide this is your age and your allowable monthly budget.
It’s crucial to speak to a mortgage broker who can show you the comparisons in monthly mortgage payments and even the total interest charged for the term.
Speak To Hemal
I have successfully assisted hundreds of people get their dream mortgage. With many years of experience as a Mortgage Broker. I have come across all types of clients who have trusted me to guide them through what can feel like a daunting process. I provide and lead my clients through this entire process with a precise, attention to every detail, in an effort to make sure their mortgage plans are being met with clarity and proficiency.
What types of short term mortgages are available?
The types of mortgages available are similar to mortgages for longer term mortgages. The only real difference is you will save money on mortgage interest on a shorter term mortgage however the monthly mortgage payments will be higher as you are looking to pay off the mortgage over a short term.
Short term interest only mortgage
A interest only mortgage requires you to only pay the interest element every month. This can bring the monthly payments down however you must keep in mind that you must have a repayment strategy in place before the term of the loan expires. The lender would expect you to pay off their charge. Some exit strategies can be to sell the property, downsize or even pay off the mortgage through savings.
Short term fixed rate mortgage
A fixed rate mortgage ensures stability of monthly mortgage payments over the initial incentive mortgage product period. You can Fix in for as short as 1 year right up to the the lifetime of the mortgage.
Its always best to speak with a mortgage broker about your individual circumstance so they can make the best recommendation according to your needs.
Short term tracker mortgage
Tracker rates are in line with the bank of Englands base rate. If the base rate goes up then your mortgage will go up in interest and if the base rate falls then your interest will also fall.
Its always good practice to speak with a mortgage broker about your individual circumstance so they can make the a recommendation according to your needs.
Short term offset mortgage
Offset mortgages are linked to your savings account. With offset mortgages you are able to offset the savings you have with the lender against your mortgage. For example if you have a mortgage of £200,000 and a savings account with the same lender for a £100,000 then you will only pay interest on £100,000 which can save you lot of money.
Its always good practice to speak with a mortgage broker about your individual circumstance so they can make the best recommendation according to your needs.
Short term mortgages for over 50s
Generally mortgage lenders will lend up to age 70 without the need to review pension income for a homeowner occupier mortgage and over 100 years old if it’s for a buy to let mortgage.
it’s good practice to speak with a mortgage broker to determine how much you can borrow and all the options available to you.
Short term buy to let mortgage
We have access to a few buy to let mortgage lenders who would be able to provide a short term buy to let mortgage over 1 or 2 years while you sort out what you will do with the property. You can exit the loan by paying off the mortgage by re financing with another lender or selling the property or even pay off the mortgage with savings.
Short term bridge loans
Bridging loans are designed to be short term. They are there to bridge the cap and await for the next event to happen. for example: sell the property or re finance onto an ordinary term mortgage.
To learn more about bridging loans then please visit our bridging loans page https://mortgage-avenue.com/bridging-loans/
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