What exactly is a mortgage?

A mortgage is really another word for a property loan - a loan that allows you to borrow a large amount of money in order to buy a home or property which is secured on the value of that property, and which you pay back over an agreed period of time.

The term 'secured' means that if you default on payments and can't keep up with the payments schedule as agreed, the lender has the right to sell your property in order to recover their money.

Mortgages are usually repaid over 25 years, but depending on your situation and earnings it can be arranged over either a longer or shorter period of time. The amount you borrow is called the 'capital', and you will also have to pay back the interest charged to you by the lender. You have two options - repay the capital and the interest together - this is a 'repayment' mortgage, or repay the interest only, and organise another investment to cover the capital at the end of the term. This is known as an 'interest only' mortgage. When it comes to choosing how you want your interest to be charged over the term of the mortgage, you have a number of options which we have explained later on within the FAQ menu.

More FAQ's:

What exactly is a mortgage?
Where can I buy a mortgage?
What type of mortgage should I choose?
How do I shop around for the cheapest deal?
What are mortgage rates?
How do I get a mortgage quote?
What is an Agreement in Principle?
How much can I afford?
How long are mortgages usually for?
How is interest calculated on a mortgage?
What is a mortgage calculator?
What happens if interest rates change?
How do I prove my income?
What happens if I am self-employed?
How does a joint mortgage work?
Can I get a mortgage with a group of friends?
Do I need a Guarantor?
What is Conveyancing?
How much deposit do I need?
What will the initial costs of buying a house be?
What is a Mortgage Indemnity Guarantee (MIG) and will I have to pay it?
How much is the Valuation Fee?
Will I have to pay an Arrangement Fee and how much will it be?
What is a Mortgage in Principle?
What happens during the mortgage application process?
What will I need to support my mortgage application?
What are redemption penalties?
How do I choose a mortgage?
How do I compare mortgages to find out which is the best?
Should I choose a "repayment" or an "interest only" mortgage?
What is a fixed rate mortgage?
What is a discounted rate mortgage?
What is a variable rate mortgage?
What is a flexible mortgage?
What is a current account mortgage?
What is an offset mortgage?
What is a capped mortgage?
What is a base rate tracker mortgage?
What is a cash back mortgage?
What is a 100% mortgage?
What is a first-time buyer mortgage?
What is a buy to let mortgage?
What is a self-certification mortgage?
What is an ISA mortgage?
What is a Refinance Mortgage?
I have been turned down for a loan or credit card, will I still be able to get a mortgage?
What happens if I am refused a mortgage?
What if I have bad credit?
What if I have mortgage arrears?
What happens if I have bank defaults?
What happens if I have no proof of income?
What happens if I have a repossession order?
What happens if I can't keep up my repayments?
Can I repay my mortgage early?
Can I take a break from making my mortgage repayments?
What happens if I have an unusual property?
What is "Right to Buy"
What happens if we have a joint mortgage, but one of us wants to leave?
Is there any way I can lower my monthly repayments without switching mortgages?
What happens if I want to move home?
What happens if there's a shortfall at the end of my mortgage term?
What is a remortgage?
What is Equity Release?
How do I switch mortgages?
How do I know if I should switch mortgages?
Do I need Mortgage Life Insurance?
Do I need Mortgage Payment Protection Insurance?
Do I need Buildings Insurance?
Do I need Home & Contents Insurance?
How do I calculate the rebuilding cost for my Buildings Insurance?
What is a Loan to Value (LTV) Ratio?
What if I die before my mortgage is paid off?
Is there a Government Regulatory Body I can refer to?
What is the Mortgage Code?
Can I buy my mortgage online?
Do I need to see a mortgage advisor?
What's the difference between buying a mortgage from a broker and the lender direct?
Do I have to pay the mortgage broker a fee?
Complaining about your mortgage broker
Complaining about misleading advertising

Links

UK Mortgage Guide
Read about every different type of mortgage available in the UK for all different purposes and circumstances.

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New Jersey Estates/ Weichert Realtors/Real Estate/New Homes/
Large Real Estate Site with NJ Realtors specializing in New Home Developments, Custom New Construction and Luxury .Homes in Somerset, Morris and Union Counties of NJ

Zero Down Mortgages
Your source for zero down payment mortgages and interest only home loans specializing in no doc and self employed mortgage loans.

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DENVER'S RELOCATION SPECIALIST! Metro Denver Real Estate, Highlands Ranch real estate, Greenwood Village homes, Littleton homes, Lone Tree real estate, Luxury Homes. Homes in Centennial, Cherry Creek, Englewood & Parker. Below market interest rates. School information. FREE community comparisons, FREE reports!

First Time Home Buyer
Mortgageonly.org provides 100% financing on home mortgage for first time home buyers and current homeowners. We got mortgage for those who got credit issues.

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