All The Types Of Home Loans That Are Available To First Time Buyers
There are many different types of home loans (there are 14 altogether!) and each one is different. Some are better for people who want a set interest rate throughout their loan’s duration and others are more suited to those who want a simple and easy home loan.
No matter what you want, just like everybody else a first time buyer can choose to apply for any kind of home loan – so don’t worry about not being eligible for a certain type. Here are all the types of home loans that are available to first time buyers (as well as those who are more experienced).
The types of home loans on offer
Many lenders will offer a few different kinds of home loans, but probably not all of them at once. If a particular lender doesn’t have the kind of home loan that you are looking for don’t worry, because another lender in your area will be likely to offer exactly what you need.
But what are the 14 types of home loans? Here are the most common:
- repayment loans
- interest only loans
- fixed rate loans
- variable rate loans
- adjustable rate loans
- 95% and 100% loans
- first time buyer loans
- buy-to-let loans
The above selection are the types of loans that you will typically see offered by the majority of lenders and from those who are well known in the financial industry.
Less common home loans
The less common types of home loan may be a little bit harder to find and won’t generally be offered as standard. You may need to search a little harder for these, because many lenders won’t make a habit of offering them to potential borrowers.
The other kinds of home loans that aren’t as well known (but can still beneficial) are:
- discounted rate loans
- flexible loans
- cashback loans
- capped rate loans
- tracker loans
- offset loans
Just because they aren’t as common doesn’t mean that they aren’t as good; these can be even better for certain borrowers and their needs. They are made to suit specific people and their wants and situations, so you may find one that is perfect for you with a little more work.
Whether it’s a repayment loan (which is the most basic kind of them all) or a capped rate home loan that will benefit you the most, having the right knowledge about your chosen type can go a long way to ensure that you get the best deal.