Taking out a UK mortgage loan for a house is a huge undertaking and as such, should not be entered into lightly. The services of a professional adviser should always be sought.
Why? Wrong lender or UK mortgage interest scheme could result in the homeowner paying too much for the loan. Or the wrong investment product may leave the homeowner unable to pay the mortgage in full at the end of the term. Then there's the worry of death, sickness, the loss of a job. All these areas have to be fully taken account off.
And the mortgage products themselves - repayment mortgages, interest-only mortgages, endowment assurances (low-cost endowment, unit-linked endowment), pension mortgages, variable rate, discounted, fixed rate, capped rate, base rate tracker mortgages, flexible mortgages, low start, deferred interest...and so on!
But, hopefully, this is where we come in - informing you of the choice that's out there and, just as importantly, exactly what it all means.
And let's start with a couple of basics. First, what is a mortgage? A mortgage, or mortgage loan, is a loan which is used to purchase a house.
But, as part of the arrangement between both borrower and lender, a legal charge is created whereby the title deeds are transfered to the lender for the duration of the loan as security.
Default on the mortgage and the lender is legally entitled to sell the property to recover the mortgage loan.
For information on all the different types of mortgages available, simply go to the menu and click any of the links.
Please note that we are not advising you what to do, just providing information. All information concerns the financial market within the United Kingdom, nowhere else.
