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- What Exactly is a Mortgage?
- A mortgage is basically a loan – a loan that is secured on the value of a property which you pay back over a given period of time.
- What Happens During The Mortgage Application Process?
- The mortgage application process, once underway, does not take very long. Once you have decided to go with a certain lender and signed a purchase contract, the lender will run a full credit check verifying your income, liabilities and your ability to repay the loan.
- What Happens If I Can’t Keep Up My Repayments?
- It is very important that if you are having problems meeting your mortgage repayments, you talk to your mortgage lender straight away.
- What Happens If There’s A Shortfall At The End Of My Mortgage Term?
- There has been a lot of publicity lately about endowment policies that have not been sufficient to pay off the mortgage at the end of the term. As an investment vehicle for new customers, they are virtually obsolete, as with a fluctuating economy there is no guarantee that the resulting balance will cover the mortgage requirements.
- What Happens If I Have Bank Defaults?
- If you have failed to meet payments on a credit agreement such as secured loans, unsecured/personal loans, credit cards, store cards or car finances etc, or you have failed to comply with your lender’s requirements, you will be described as having 'defaulted'.
What Exactly is a Mortgage?
A mortgage is basically a loan – a loan that is secured on the value of a property which you pay back over a given period of time.
The term ‘secured’ means that if you cannot fulfil the payment programme as agreed with the lender, they have the right to sell your property in order to recover their money.
The usual term of a mortgage is 25 years, but depending on your circumstances and earnings it can be arranged over longer or shorter periods. The initial amount you borrow is called the 'capital’, and added onto this capital will be the interest charged to you by the lender. You have two options – to pay off the capital and the interest as one sum – this is a ‘repayment’ mortgage, or pay back the interest only, and set up another investment to pay back the capital at the end of the term, this is known as ‘interest only'. You have many more options when it comes to choosing how you want your interest to be charged.
- Where can i buy a mortgage ?
- Can I Take A Break From Making My Mortgage Repayments?
- What happens if i cant keep up the repayments ?
- Is there any way to lower my repayments without switching mortgages ?
- Can I Get a Mortgage With A Group Of Friends?
- What if i die before my mortgage is paid off ?
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