Mortgages

If you take out a loan to purchase a property this is known as a mortgage. This loan will be for a fixed period and you will have to pay interest on this loan. If you do not keep up with the agreed payments, the mortgage lender can take possession of the property.

There are different types of mortgage and it can get confusing deciding which the right mortgage is for you there are many good independent mortgage advisors, it is wise to take advice.

The mortgage you choose for your house is a very important choice - the wrong mortgage could end up costing you thousands of pounds more than necessary.

It is also important to choose the right repayment time for you. Choosing a longer time to repay the mortgage will reduce the monthly repayments, but it will also increase the total cost of the mortgage. For example repaying a 100,000 mortgage over 15 years at 8% will cost 175,320 with monthly payments of 974, repaying over 25 years will only cost 781 a month, but the total cost is 234,300 - almost 60,000 more! There are 3 main choices you have when you are deciding on a mortgage. The mortgage type, interest type, and the mortgage term. The first choice you need to make is which type of mortgage to choose.

Use this Mortgage Calculator Below.