Cheap Mortgages UK

There are three general types of mortgage lenders that you can approach. They are Mortgage Brokers, Mortgage Banks or Savings and Loans Associations. Though there are other types of lenders being Direct Lenders, Portfolio Lenders and Correspondents which all play their part in the Mortgage Lending sector.

Mortgage Lenders:

Below is a brief description of the last three for mentioned lenders. If you would like to learn about Mortgage Brokers, Mortgage Banks or Savings and Loans Associations then following the relevant links provided.

Portfolio Lenders
Portfolio lenders are very much a self preservation institution. They do so by originating out loans from their own funds for their own needs. This means that institutions of this caliber are lending for their own portfolio of loans and are not concerned about selling their portfolio immediately on the secondary market. It is generally expected that portfolio lenders are large banks and large savings and loans associations.

Direct Lenders
Direct lenders also fund their own loans. The spectrum of direct lenders range from the smallest of institution to the largest of banks.

Correspondents
Correspondents are either an individual or a company and partake in the origination and closure of home loans in their own name, and later selling off these loans individually as apposed to a collection to a sponsor. This sponsor then re-sells the loan in the form of a pool to other corporations as a mortgage banker.