Are you tired of living in a rented accommodation? Don’t you wish you owned a home of your own? Or are you looking for a location to start a business of your own? Guess what? It’s now not such an ordeal to buy a place of one’s own.

If you are looking to buy a commercial or a residential property, then a mortgage can come in handy. A mortgage is basically a loan that you draw to buy a property. Mortgages however necessitate collateral on your part. In other words to avail a mortgage you need to pledge some kind of security as a form of assurance to the lender that you will eventually pay back the loan.

Let’s now take a quick peek at the kinds of mortgages that are available in the market.

Residential Mortgages

A residential mortgage is another name given to ordinary mortgages availed to buy homes. If you have a good credit score and a steady income, several mortgage lenders will vie for your business. With the Council of Mortgage Lenders forecasting a modest rise in property prices, this may just be the propitious time for you to shop for mortgages.

Commercial Mortgages:

A commercial mortgage is similar to a residential mortgage, wherein you draw out a loan to buy a property for business purposes. The lender of a commercial mortgage retains a claim on the property until the loan has been paid in full. As opposed to other business loans, commercial mortgages can be drawn for a longer period of time.

Buy to let Mortgages:

With pension schemes failing to give the expected returns, more and more people in the UK are turning to the property market for long term investment. A buy to let mortgage is one that is availed for the purpose of purchasing a property with the intention of letting it out. This property can be a commercial as well as a residential property.

First-time-buyer-mortgages:

if you are a novice to the mortgage industry, then you can avail a first time buyer mortgage. Such a mortgage is one that is specially crafted for people who are first time buyers. Time is especially good for first time buyers as it has been recently announced that from October 2006 that three lenders will join hands to offer shared equity mortgages to first time buyers.

Check out the mortgage guide by the mortgagefit community. It provides you the guidance along with the information to choose the right mortgage.