Mortgage in US and UK
Mortgage in the UK is a little diversified compared to what’s obtainable in other parts of the world. In the UK it is highly developed and you are likely to encounter some terminologies that is unfamiliar if you are conversant with a system elsewhere.
Before you secure a mortgage in the UK, you need to know a few things about how it works to be better equipped.
The first decision you need to make is if you want a fixed rate or a rate that varies.
Fixed rate: fixed rate mortgages come with a guarantee that the same interest rate will apply down the line through the duration of the agreement. It’s more difficult but still possible to secure a length fixed rate in the UK but there is a certain criteria that needs to be met.
Variable rate: this is usually termed as the Adjustable rate Mortgages (ARMs) in the UK. Compared with the Fixed rate these can cost more based on the interest rate fluctuations.
How do you access a mortgage in the US, should you go to the bank?
In the United States it’s very possible to arrange a mortgage straight with any bank of your choice. As a matter of fact, about 90% of mortgages are directly arranged with banks instead of using a middleman or broker.
The steps involved in getting a mortgage in the US involves the following
- You need to decide if you’ll like broker to explore your options
- What is the perfect mortgage that fits your needs
- Submit the relevant paperwork and get a mortgage pre approval
- Choose a property within your budget range
- Pay a deposit to secure sale’s and fix a completion date
- Once the sale is ‘complete’ you’re now liable for the mortgage payments including any additional taxes