What is a Mortgage?

A mortgage is like a loan or debt, where you borrow money from a lender or finance provider. It is a secured lending arrangement, which means you the borrower have offered a property as security for the loan to the lender.

If the property offered is your home, then it is most likely to be a Residential Mortgage. If the property offered belongs to your business, it is most likely to be a Commercial Mortgage.

Types of Borrower

You could be a first time buyer, a home mover or remaining in your home and just changing your mortgage – i.e. remortgaging.

Reasons for Mortgaging

You could be borrowing money to purchase a property or raising capital for home improvements, holiday, business venture, car purchase or consolidating debts – i.e. releasing equity, or simply moving your mortgage to get a better deal – i.e. pound for pound mortgage transfer or remortgaging. You may even be doing all of these at the same time!

Types of Mortgage Repayment Methods

When you take out a mortgage or loan, you will need to have agreed with the lender how you are going to repay it.

As a borrower you have two main options when considering the method of repaying the loan. Over the term of the loan, you can make monthly repayments consisting partly of capital and partly of interest – i.e. Capital repayment mortgage or you can pay interest only every month, leaving the capital to be repaid at the end of the loan term.

How do I get a Mortgage?

The first and most important step after you have decided you may want a mortgage is to have a discussion with us to provide you with independent financial advice.

Once we have agreed what the most suitable mortgage is for your particular circumstances we make an application on your behalf to take out a loan based on how much you can afford and the value of the property, for a length of time agreed between you and the lender.

Want to know more?

Talk to one of our qualified financial advisers on 01553 777600 or e-mail us at enquiries@ringassociates.co.uk

Also you may want to read the free download publication from the Financial Services Authority titled ‘Helping you choose the right mortgage’ by accessing the following website www.moneymadeclear.fsa.gov.uk