Getting a house mortgage isn't so hard nor simple. It's hard because there are so many mortgage companies in the market today that you are not sure of. So you need to careful before you realized you are being cheated or fraud. But wait you also need to know the terminologies and meanings.
A mortgage is the loan you take out from a lender to pay for a property - is probable one of the largest debts you will have in one go.
A remortgages is a process that replaces an existing mortgage loan with a new loan from a different lender. The new lender repays the existing mortgage debt to the original loan provider. The borrower is then left with just one mortgage loan, repayable to the new lender.
Different Types Of Mortgage
Interest only mortgages
An interest only mortgage is one where none of the capital is actually being repaid directly, only the interest on the loan is. You are making mortgage repayments towards the interest, you should be paying simultaneously into an investment fund. At the end of your mortgage term, this fund should hopefully have grown enough to pay back the capital and even leave you with extra cash. If you take this type of mortgage, your lender will normally offer an investment product into which you can make your payments, but you are under NO obligation to accept it- you can shop around for the best deal- using an ISA has a tax advantage over others.
Repayment Mortgages
This is the only way in which a property is actually guaranteed to be yours at the end of your mortgage because you pay a little towards the capital with every payment (doesn't go towards the capital but goes towards interest) until the whole debt is paid.You will pay a bit more every month towards this type of mortgage, but you will be eating into the actual debt, not just interest, and you will not need a separate investment scheme to pay off the property.
Check and compare mortgages first before deciding which one is the best. Go to ukpersonalloanstore.co.uk for more informations.
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