An investment in bricks and mortar: only a mortgage away

The national shortage of homes and excess of demand in the UK has created a rapid rise in property prices, and experts predict there will continue to be a steady growth in prices as developers cannot build enough homes to satisfy the demand. As a result, property prices have risen to new heights over the last decade and more young people are opting to live life independently and government statistics show that there are nearly 50% more people living on their own in major UK cities than ten years ago.

Today, more people than ever before are enrolling for higher education courses, equipping them with skills to succeed in their futures. Higher levels of education and a positive economy have provided new opportunities and spurred many starting their careers to be ambitious and upwardly mobile - often leading to relocation throughout the UK; the combined flux of people moving around the UK and choosing to live alone has exhausted the housing market.

Regardless of what kind of property you want to buy, you'll need to pay for it. Not many people are fortunate enough to have enough cash to pay for a property up front; the majority of home-owners pay by getting a mortgage: a form of long term loan that is secured against the value of the property itself. A wide variety of mortgages are available, each offering different terms to suit the individual. Buying a property is recognised as a worthwhile long term investment, giving the owner an asset to build their future upon.

Most people try to save up as much funds as possible to pay for a deposit on their home and reduce the amount of borrowing they require, whilst those that find it hard to raise enough money to do this can get a 100% mortgage, which requires no deposit at all.

There are two main types of mortgage: fixed and variable. A fixed rate mortgage has a fixed rate of interest to be paid back to the lender over the period of the mortgage, whilst a variable rate mortgage differs in that the rate of interest paid back varies according to national interest rates. Each type of mortgage has benefits and drawbacks and it is a personal decision as to which is more suitable. Although these are the two main types, there is an exhaustive array of derivatives available from mortgage lenders.

Mortgage lenders can help you to choose the right mortgage for your circumstances. A range of UK mortgages are available on the market, and there are now even online tools that can help compare mortgages, making the process easier to understand and allowing you to find the best value policy for you.

Whether you are venturing into home ownership for the first time or planning on moving further up the property ladder, finding the right mortgage lender is the first step to your future.