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New Kinds of Mortgages in the UK UK mortgages have changed in recent years. Before now, mortgages were only given to a man with family and a steady income. The rest of the people found themselves renting.Recently, however, the UK mortgage market has made some changes. Mortgage lenders are willing to offer mortgages for regular people that do not fit the old mortgage borrower description. The following are a couple of the new mortgage types available. Another new type of mortgage in the UK is called the Muslim mortgage. There are a great deal of Muslims residing in the UK. However, Islamic law dictates that the payment of interest is forbidden. For Muslims in Britain this has caused an uncomfortable position. They either have to rent or they can compromise their beliefs to take out a traditional UK mortgage. To solve this problem Muslim Imams have agreed on specific home loans which were specially designed for Muslims. Parent help mortgages are becoming more common. Many first time buyers have a hard time managing a mortgage payment. Their salary might be low. Or they may have surplus debt. A mortgage guarantor is a person that agrees to be responsible for paying a home loan. If the person who took out the mortgage loan cannot pay then the mortgage guarantor has to continue with the payments. Generally the person who guarantees the mortgage is a parent of a young buyer. Or it could be another close relative. Or perhaps even a close family friend. Bad credit Remortgage deals aren't as uncommon as you might think. Some people who have a home loan later have credit problems. They don't realize it is a problem until they go to Remortgage. Previously, the mortgage lender wouldn't give them an additional home loan. But today many lenders would be delighted to give them another mortgage. The catch is the homeowner must pay extra money due to the fact that they're considered a higher risk. An equity release loan is directed at families that already bought a home, but are in need of money and want to raise some money. They're perfect for elderly citizens who have got nursing care or other retirement costs. There are several types of equity release mortgages. You should be cautious if you are thinking about taking out this kind of mortgage loan. They're not often recommended by mortgage experts who say they are not suitable for a lot of people. If you've got money problems there are other ways to earn money. Mortgages were originally designed to only be for those with families and a dependable income. They would entirely pay off the mortgage during the course of their career. Typically a 30 or 25 year loan would take them up to retirement at 60. Anybody above age 40 had difficulty getting approved for a home loan. The system did not believe that they would pay off the mortgage prior to retirement. Those who had already retired had a poor chance of getting a mortgage. But things have changed. Now it is totally possible for the elderly or mature people to get a mortgage. Many lenders will be happy to help them, and mortgages for the retired are quite common. About the author: Mr. Sam Enright writes on UK personal finance newspapers and internet sites such as MortgageSorter, a UK website that makes Mortgages in the UK easy to understand. Sam Enright is a content writer for various Finance newspapers in the UK, including http://www.mortgagesorter.co.uk. Mr. Enright makes it a point to make all things that are involved with mortgages in the UK easier to make sense of and understand, including guarantor mortgages
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