What is a Mortgage?
When you are looking to get on to the property ladder many people will
be in the market to acquire a mortgage. Buying your home will more
than likely be the one of the most expensive purchases you will ever make.
There are many definitions of a mortgage available but every one focuses on the very basic principles that you will need to approach an institution to borrow some money to fund your purchase. This is usually termed as a form of loan.
The mortgage market provides the buyer a huge array of possible sources for their mortgage, such as high street banks and building societies, to independent brokers and specialist mortgage lenders.
The mortgage is based on an agreement between yourself, the borrower and the lender. The agreement will consist of many important details including how long the money will be on loan for and how you will repay this back.
Mortgages lenders will apply an interest rate for the privilege of borrowing you the money, interest rates that you can be offered will vary from lender to lender.
For many the mortgage market can be often confusing as there are so many terms and forms of mortgages available but in general there are two key types of mortgages that you need to be aware of. These types are known as ‘interest only’ mortgages and ‘repayment’.
At mortgages-uk.eu we will help you understand all the types of mortgages that are available and provide you with the latest mortgage offers in the market.