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  • Writer's pictureRicky Gandhi

5 Unique Mortgage Options You Didn't Know About in 2023

Updated: Feb 14

Are you looking into mortgage possibilities for a new home that you might buy? You might be shocked to hear about some unusual mortgage choices you were unaware of. We'll look at five of these choices in this blog post and assist you in determining if they're the best fit for you.

Family offset mortgages

Family members can use a family offset mortgage to reduce the amount of money they owe on your mortgage. This may result in a lower interest rate for you and a shorter mortgage term. For instance, your parents can lower your interest rate on your mortgage by offsetting their £50,000 in savings against it. It's crucial to remember that your mortgage's interest rate will go up if the family member takes money out of their savings.

Joint borrower sole proprietor mortgages

You can apply for a mortgage with another person, but only one person is designated as the property's owner when you use a joint borrower sole proprietor mortgage. If you both wish to split the cost of the mortgage payment but one of you makes more money or has better credit than the other, this could work out well. It's crucial to realize that, regardless of who owns the home, all parties are accountable for the mortgage payments jointly.

Green mortgages

Lower interest rates or cashback bonuses are some of the ways that green mortgages reward borrowers for purchasing energy-efficient homes. Certain energy efficiency requirements must be met by your house in order to be eligible for a green mortgage. If you want to lower your carbon footprint and save money on energy costs, this can be a wonderful alternative.

Sharia-compliant mortgages

Mortgages that comply with Sharia law are intended for Muslim borrowers who wish to follow the precepts of Islamic finance. Rather than levying interest on the loan, the lender takes a part in the gains or losses on the asset. While it might not be the best choice for everyone, this kind of mortgage is a crucial one for people who wish to uphold their religious convictions.

Retirement interest-only mortgages

Retirement interest-only mortgages are intended for senior citizens who might find it difficult to qualify for a conventional mortgage due to their advanced age. With this kind of mortgage, all monthly payments are limited to the interest only; the remaining balance is repaid upon selling the property. If you want to buy your own house even though you're retired and on a fixed income, this can be a suitable alternative.

To sum up, these distinctive mortgage choices come with a number of advantages and can be customized to meet your specific needs. Before making any decisions, it's crucial to thoroughly weigh your options and consult a licensed mortgage consultant. You can realize your dream of having your own house and reap a number of perks in the process with the correct mortgage.

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