Such a wide range of loan products are providing too many options to the borrowers. But at the same time, these loans are making the market too competitive. The loan lenders and the lending companies are always trying to bring something new in the market. The lending companies actually wants to attract the borrower through inventing new loan plans and in order to do this they are enriching the market.
The mortgage market in the UK is one of the best mortgage markets in the world and this market is regulated by the Financial Services Authority or FSA, which is an autonomous body. The regulatory body enjoys absolute power in regulating the market and the government never interrupts in the mortgage market.
Because of the wide range of mortgage products, the borrowers get many options but at the same time the options also makes the borrower puzzled. Then the borrowers approach the mortgage Brokers. These mortgage brokers are very significant and plays a leading role in the mortgage process. These people actually help the borrowers to select the loan option. On the other hand these people also provide the much needed customers to the mortgage companies and help the mortgage companies to expand their business.
As stated earlier the mortgage market offers several types of loan plans which differs from each other in loan terms and interest rates. Some of these mortgage loans are:
Individual Savings Account
The interest rates on these mortgages are not the same. There are several types of interest rates which are dominating the UK mortgage market. Among these there are the fixed interest rates, variable interest rates, capped rates, cash back deals, discounted rates, etc.
The fixed rates are the most conventional and here the interest remains the same for a particular period of time. Within this period, there may occur any kind of change in the market, but the interest rates on the loan amount never changes. But the variable rates are just the opposite of the fixed rates. Here the interest rates fluctuate from time to time. Sometimes the market remains in favor of the lender and sometimes it favors the borrower. The monthly installment can change from time to time.
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Last Updated on : 24th August 2013