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No Doc Loans
No documentation loans, also known as liar loans, are granted based on the buyer’s stated income and credit record and do not require proof of employment, income, or assets. While they were fairly easy to get a fair years ago, they are effectively gone in the wake of the financial crises; however, this page is still provided for informational purposes.
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Buy to Let Mortgages
A buy-to-let mortgage is one used to buy a property specifically for the purpose of leasing; the term is primarily used in the UK. Generally a property is purchased with the expectation that the value of the property will rise, allowing it to be later resold at a profit; in the meantime, the property is to be let with the hope that the rental income will cover the cost of the loan. Of course, there is no obligation to resell the property; the landlord may simply intend to let it out indefinitely.
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Bad Credit Remortgage
As with a standard mortgage, the rates you can find with bad credit will be considerably worse than if your credit was better, if you can find them at all. However, that doesn’t mean that it doesn’t make sense to remortgage, particularly if interest rates are lower and your credit has improved since you got your original mortgage. Sometimes, when you’ve made mistakes in the past but are now making an effort to pay off your debt, high interest rates can make it difficult to even make a dent; in this case, a bad credit remortgage can be your best option for getting on top of your debt. Additionally, by taking out a different type of debt and using the money to make good on your existing debt, you can actually improve your credit! Finally, if you’ve built up considerable equity in your home and can do a cash-out remortgage while still retaining a good bit of equity, this lowers the risk to the lender (because the house is worth more than you owe them), which makes it easier for them to approve the loan.
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Remortgages
Remortgaging is similar to refinancing, and the two terms are often confused; it is effectively the transfer of your mortgage from one lender to another. The term remortgaging is mostly used in the UK; elsewhere it is primarily known as switching. The term applies only when the homeowner is switching to a different lender, not when switching to a different product with the same lender. The new lender pays off the existing mortgage, leaving the borrower with a new mortgage (hopefully at a lower rate).