5 Unique Mortgage Options You Didn't Know About in 2023
Are you in the market for a new home and exploring your mortgage options? You may be surprised to learn about some unique mortgage options that you didn't know existed. In this blog post, we'll explore five of these options and help you decide if they're right for you.
Family offset mortgages
A family offset mortgage allows family members to offset their savings against the amount owed on your mortgage. This can reduce the interest rate you pay and potentially shorten the term of your mortgage. For example, if your parents have £50,000 in savings, they can offset this amount against your mortgage, reducing the interest rate you pay. However, it's important to note that if the family member withdraws their savings, the interest rate on your mortgage will increase.
Joint borrower sole proprietor mortgages
A joint borrower sole proprietor mortgage allows you to apply for a mortgage with someone else, but only one person is listed as the owner of the property. This can be beneficial if one person has a higher income or better credit score, but you both want to share the responsibility of paying the mortgage. However, it's important to understand that both parties are jointly liable for the mortgage payments, regardless of who owns the property.
A green mortgage rewards borrowers for energy-efficient homes by offering lower interest rates or cashback incentives. To qualify for a green mortgage, your home will need to meet certain energy efficiency standards. This can be a great option if you're interested in reducing your carbon footprint and saving money on energy bills.
Sharia-compliant mortgages are designed for Muslim borrowers who want to adhere to Islamic finance principles. Instead of charging interest on the loan, the lender shares in the profits or losses of the property. This type of mortgage may not be suitable for everyone, but it's an important option for those who want to follow their religious beliefs.
Retirement interest-only mortgages
Retirement interest-only mortgages are designed for older borrowers who may struggle to get a traditional mortgage because of their age. With this type of mortgage, you only pay the interest on the loan each month, with the full amount paid back when the property is sold. This can be a good option if you're retired and on a fixed income, but still want to own your own home.
In conclusion, these unique mortgage options offer a range of benefits and can be tailored to suit your individual circumstances. It's important to carefully consider your options and seek advice from a qualified mortgage adviser before making any decisions. With the right mortgage, you can achieve your dream of owning your own home, while enjoying a range of benefits along the way.