With the interest rates being lower than they have been in years, now is the opportune time to obtain a mortgage.
The problem is that building societies or lenders are being far too careless when awarding mortgages. It seems that they don't have their eye on the future. For instamce someone applying for a self-certification mortgage is able to state how much they earn without producing proof. Which means that they might extend themselves far beyond their financial ability.
When deciding what type of mortgage to apply for there are a few options to consider:
If you earn a steady income and wish to get a mortgage, a fixed rate mortgage might be the best option to consider as it carries a consistent interest rate over a set period of time.
A capped-rate mortgage are a good option if you think that interest rates might rise, in which case you will never pay more than the set agreed cap interest rate.
A flexible mortgage is popular to many people because it provides the means the vary the payments you make on a month to month basis. If your income is sometimes eratic or you receive regular bonus payments you may want the flexibility to pay a bit extra off your mortgage. Conversely, if you were to encounter a month where you knew you have high expenditure, you could reduce the amount you pay in that month.