Mortgage FAQ

A mortgage FAQ facility that will hopefully populate over time with more and more mortgage related questions and answers.

What is a mortgage?

A mortgage is a type of loan product, whereby a mortgage provider (the lender, usually a bank or building society) will give you a lump sum of money that you use to buy your house. You then have the pleasure of paying back that sum over a period of time. Typically this period is 25 years, though it can be shorter or indeed longer.

Because it is a loan, you will also have the enjoyment of that little thing called interest, which means that the total sum you repay will be vastly greater than the initial mortgage sum. The interest rate can be fixed or variable depending on the mortgage product you go for; as far as you are concerned the lower the interest rate the better as your monthly mortgage payments will fall proportionately on any mortgage that reflects the prevailing interest rate.

What are the types of mortgage?

There are new types of mortgage products all the time, and they vary from lender to lender. However some are quite standard such as variable rate mortgages and interest only mortgages. There are details on most of the individual types of mortgages with a specific page on each in the mortgage section of this website. Read those descriptions for more information.

What mortgage should I get?

Only you can answer that, in conjunction with a mortgage adviser. At the time you are seriously considering a mortgage meet with an adviser and they will guide you through the process clearly and carefully and help you work out which is the best mortgage product for you. There are many considerations to take into account and that's why it is important to discuss it with an expert at the appropriate time.

What is the interest rate on a mortgage?

Again this can't be answered as it varies from product to product and from time to time. If you get a fixed rate mortgage for instance, then you will get a constant rate, with a variable rate mortgage it will vary with interest rates. You will need to discuss the options with your mortgage adviser and then be sure you understand how the interest rate may or may not vary whilst you hold that mortgage product, and how this will affect your finances and ability to pay back the monthly payments.

Buying Property

Mortgages

Buying Overseas

Tools and Resources

Property Forums

Mortgage FAQ