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Mortgage Factors

A mortgage loan implies borrowing money from the bank for financing the purchase of a property. The borrowings are then returned back to the lender along with interest accrued over a fixed period of time. Depending on the amount of loan, the lender will usually keep security to cover against defaults in payment of Mortgage loan installments. In UK mortgages are issued for a period of 25 years or more.

There are many different kinds of mortgages. The mortgage with the lowest interest rate might not be the best suited for you. To compare different Mortgage types view the factors below.

Mortgage Factors to be considered while choosing a Mortgage deal
  • One of the important factors which require consideration is how much can you afford to pay monthly as Mortgage installment. You need to consider whether you would be able pay installments on time (factor in contingencies such as loosing your job or inability of working). You also need to consider insuring yourself against any unexpected eventualities

  • Compare a fixed rate loan with a variable rate loans and consider the pros and corns of both the deals. For example you might choose to opt for a fixed rate loan as you wish to know your liabilities well in advance. However if interest rates are expected to fall in the near future variable rate Mortgage would be a better choice

  • Once you have thought upon about the various Mortgage Deals available and know which type of mortgage loan you can afford you can commence finding properties that fit your budget. Also, obtain an agreement from your mortgage lender assuring your mortgage deal.