If you have started out in the housing market later than you should have, then linear mortgage would be an excellent idea for you. The European world tends to favor this kind of mortgage, especially the Netherlands, although you might find examples of that in the United States. In the linear mortgage, you would have to pay a fixed amount every month based on the amount of your mortgage, along with the interest. However, since the amount of the principal that is borrowed out tends to decrease over time, the interest payments also reduce over the time. This is because of course; you are redeeming slowly the amount that was borrowed out.
Therefore, those people who want to pay the mortgage quickly enough should get linear mortgage. In addition, if you are expecting that there would be a reduction in the amount of income that you would have in a few months, then this is the one that you should go for. However, a slight disadvantage of this kind of mortgage is that the interest payments are not tax deductible, so you would be paying the taxes, as well. Nevertheless, if you want to be secured properly in the future, then this is the option that you should go for.
It is also ideal for those people who know that they would be retiring in the future, which means that their pension would not be enough to support the payments on the mortgage. Therefore, linear mortgage would be perfect for such people.
In addition, another advantage that you would have is that there would be no debt after the term ha finished, which means that the mortgage would be paid in full, and you would be the actual owner of the property. There would be no cases of eviction or removal from the house, leaving you completely stress-free. Therefore, for the mortgage lender and the borrower, this is the ideal kind of mortgage, because linear mortgage is less risky than the other kinds.
You would also be able to negotiate well with linear mortgage, since you can always opt for a deal that provides reduced interest rates. Therefore, since the risk to the lender is less in this kind, they might be quite willing to provide you with a low interest rate, which means that the mortgage would cost you less. However, remember that you need to know whether this kind of mortgage is suitable for you. If you are someone who has just started out in the world, then this is not the mortgage for you. Your income will increase in the future, which means that you should go for another kind. For those individuals who are purchasing a new and bigger house, or someone who is retiring in the future, this is a suitable option for you.
Therefore, whenever you opt for linear mortgage, you should clear in your decision. Consult with your broker properly before making this decision. In addition, try negotiating for the interest rate because you would be paying taxes on it, as well. Hence, proceed with caution