A guide to mortgaging your property in the UK
Helpful mortgage guide from Residential Property Finder, here we provide some free, impartial information for potential home-buyers in the UK to help you understand your mortgage, and to help you make the right mortgage deal for your needs.
We have provided information for loans secured by mortgages, such as residential housing loans, and lending practices or requirements...
We have constructed this helpful guide to provide you with a starting point towards understanding the UK mortgaging process and how money can be saved by finding the best possible mortgage to suit your needs and budget. Every single person who climbs onto the property ladder needs something a little different from their personal mortgage and there are many variations of mortgages on the market, so it is important to find the right one to suit your circumstances, so lets start at the beginning...
What is a Mortgage?
In essence, a mortgage is a loan with two clear features. A mortgage is a loan that is designed to be paid back with interest over a long period. On average this period is typically 25 years however depending on your circumstances it could be a loan over 30 or even 40 years. A mortgage, unlike a bank loan or a credit card is ‘secured’. By this we mean that in return for lending you money to purchase your home, the bank uses the property as security for the mortgage, meaning if you get into problems and can’t repay your debt, the lender has the right to reclaim your house, and sell it to recoup the money you borrowed. So as well as your new home being your biggest investment, it is also an investment on behalf of the bank.
Sounds simple, right? Wrong! The mortgage market is a competitive one and there are some great deals to be had and some huge savings to be made by shopping around and choosing the loan that suits your personal requirements. However, there are also many pitfalls to look out for and, with thousands of mortgage variations available, making the right choice can be troublesome.
What type of Mortgage is best for you?
There are literally thousands of different mortgages available. Navigating through the Mountains of deals on offer can seem mystifying. Think of it as a series of choices where you simply choose the deal that suits your needs and budget…
1. What interest rate structures are available?