3 types of special mortgages with lower interest rates

 

“If you are looking for a mortgage with the best interest rate then look no further! Here we have 3 mortgages that have lower interest rates for special circumstances. Do you qualify?” 

 

When it comes to the mortgage products available, what lenders have to offer are what they have. They don’t vary from adviser to adviser. But there are some mortgage products that are only available to particular applicants. But what makes them special and how do you qualify for them? 

 

The 3 types of mortgage products that come with beneficial interest rates will depend on 3 different things:  

The buyer type, the property being purchased and the applicant type. 

 

The first mortgage type that comes with a lower interest rate than standard mortgage options is aimed at First time buyers. At the time of writing-2024, many high street lenders are making a big push to capture more 1st time buyer business. To do this they are offering lower interest rates for 1st time buyers to help make buying their 1 st home that little bit easier by making that 1 st mortgage a little bit cheaper. The reduction in interest rate will vary from lender to lender but this can be 0.25%+ compared to the rates found on their standard product range. 

 

Some lenders instead of offering a lower interest rate, instead offer cashback which is paid to you on completion. This is aimed at giving you money to use towards paying your solicitor or your mortgage adviser, or even having some money to put aside to begin decorating or furnishing your new home. 

 

The next type of ‘special mortgage product’ on the market is to be used for those applicants buying Energy efficient properties. As the government makes a push to improve the energy efficiency of homes in the UK, their strategy is to encourage lenders to provide incentives to those buying energy efficient homes in the 1st place by offering cashback and lower interest rates on cases where the applicant buys a home with an Energy efficiency certificate of A-C. Some of the high street lenders are offering cashback ranging from £250 - £1600 payable to you on the completion of your mortgage. Lenders are also offering cashback products on the basis the money is used to increase the energy performance of your property post completion, to further improve the energy efficiency of properties. Rather by an already efficient property, you can use the cashback to improve the efficiency once you become the owner.  

 

Qualification for these products will be evidenced by the EPC register. The property you are buying will have an EPC that is registered on the EOC register for the lender to check as part of your mortgage application. If the EPC on the register has expired (as they only last 10 years) you can instruct a new EPC assessment and provide this to the lender to qualify. Some lenders require an EPC of C and above, whereas some will only qualify A or B. 

 

The 3rd and final unique mortgage product available on the market are classed as ‘Professional mortgages’. To qualify for these preferential mortgage products, you must have an occupation that is classed as professional by that particular lender. The typical professions covered by these lenders are Solicitors, teachers, NHS staff and policy staff. The list of qualifying professions will vary from lender to lender. 

 

Like with all mortgages, the criteria for these products changes from lender to lender so always best to use an independent adviser to support you and match you up with the perfect mortgage that not only suits your needs, but one that you qualify for.