When you purchase a mortgage you should also consider it an investment on your future since you may be able to use equity release functions later in life to supplement your retirement.

When people reach age 55 or older they are eligible to apply for equity release which is a way for you to use your investment while you are still alive without selling your home in exchange for a smaller equity share in the home.  In the past many people were hesitant to use this option as it was not secured, but now all equity releases are regulated by the FSA (Financial Services Authority).

When it comes to choosing an equity release you have two options: a lifetime mortgage or a reversion scheme.  Lifetime mortgage equity releases are loans that can be taken out on a regular basis much like a paycheck or in one large sum.  Upon your death the property is sold and the government takes back its loan money and the difference is given as inheritance.

The second type of equity release is a reversion scheme in which you choose to sell a proportion of your home in order to see the money immediately without owing later after death.

If you want to protect your property investment you will need to purchase proper homeowners insurance.  There are two types of insurance to consider when you first get a mortgage, compulsory and non-compulsory.

Building insurance is compulsory due to the fact it protects the building you have a mortgage on thus guaranteeing your lender in the case of an emergency.  Content insurance on the other hand is not compulsory meaning you only need to purchase it if you want it, but it is a good idea since if the building is damaged your belongings inside are likely to be damaged as well.

For first time buyers of a mortgage, the housing and lending market can be intimidating.  Although the housing market is starting to stabilize getting approved for a mortgage may seem outside of your credit history, and making the large ticket purchase upfront may be simply impossible.

While there are many problems facing first time buyers, there are also several special mortgages that are aimed at providing first time buyers with an achievable way to get a mortgage approved.

First of all, the government offers certain schemes and tax breaks for first time buyers.  Certain government departments also offer programs to help entice first time buyers by making it easier for them to get mortgages. 

Those who are considered key workers, such as professionals like doctors, teachers, and firemen also can get tax breaks as first time buyers so you will want to investigate to see if you fall into one of these categories.  Usually the interest level is set lower if you are a recent graduate with training in one of the approved categories and can borrow up to 85%-90% of the property’s worth.

If this is not an option, a parent or relative that can be your guarantor can also be helpful as a first time buyer.  In this arrangement the guarantor signs that they are responsible for the property if you fail to make the payments allowing you to borrow much more than your income would warrant without their aid.  Guarantor mortgages are the only options on the table for first time buyers that still allow you to get a 100% mortgage.

During the recession and as a result of rising house costs first time buyers are also often seeking out shared mortgages.  Shared mortgages usually accommodate the incomes of up to four people and help to increase the amount you can borrow.

There are several reasons that you may want to consider a remortgage deal if you currently have a mortgage.  First and foremost is that when the market fluctuates a remortgage can save you hundreds of  pounds a year or even a month as it not only may reduce the amount of principal you have left on your current mortgage, but it can also drastically help reduce your current interest rates.

Simply put, a remortgage is the act of taking out a second mortgage that replaces the current mortgage arrangement.  Generally speaking, when you remortgage your home you will take out a loan for the entire worth of your home at which point you can invest the money you are lent towards your entire mortgage or as extra cash if you have past due debts.

Many people remortgage their home in order to free up the equity they have in their home to pay off past debts.  For example, if you have been paying on your mortgage for five years you may have already paid at least 5000-10000 pounds off.  When you remortgage your home you are given a new mortgage that includes this amount plus the principal of your old mortgage.  Once you pay off the old loan you now have a new mortgage.

Thus, you can use that money towards your mortgage reducing the amount you owe on the remortgage, or use it to pay past debts so that your mortgage is the only bill you have left to pay.
Even if you are not in debt a remortgage can often reduce your interest rates, be it a fixed rate or variable rate mortgage, by a few percent which can make a large difference.  This is due to the fact interest rates vary with the current standard and with your credit history.  Therefore, after a few years of mortgage payments it is always wise to talk with a mortgage counsellor to see if you can benefit in the long-term from a remortgage.

In the past self employed mortgages were hard to find, however, as self-employment has grown it is now easier to get a self employed mortgage if you approach the correct lenders and can show financial proof of a regular income.

Every time you are turned down for a self employed mortgage your credit file is affected making it harder to receive a self employed mortgage the next time you apply.  Thus, it is in your own best interests to do your research before you apply to minimize the possibility of rejections. 

Many people who receive self-employed mortgages also find that a mortgage broker or financial advisor is helpful for finding lenders who will agree to work with you from the start.  By knowing how to present your proof of income and which lenders to target you will increase the chances of receiving a self-employed mortgage and reduce the amount of negative rejections you receive.

In order to be eligible for a self-employed mortgage you will need to present your finances in a way that is acceptable to lenders.  Most lenders will look favourably on you if you can show a steady stream of reliable income.

For example, if you usually work on short term contracts but can show that your contract has been renewed several times throughout a year or two’s time you show a reliable source of income.

Before meeting with a lender you will need to organize your pay stubs, bank records, and all other financial proof in a way that reflects a steady stream of income in this manner.

Those who are the primary source of income that are looking for a self-employed mortgage will benefit from showing a spouse’s source of regular income as well, even if it is not significant.  This helps prove a steady stream of income does come into your home and will increase the chances for an approval