Mortgage Guide
These days there are a number of different places to go for a mortgage.
You could opt for a building society, the historical home of mortgages.
The big building societies have national branch networks and offer a full
range of mortgages. Or you might choose a small society that could offer
you the benefit of its local knowledge. Then there are the banks, which
have cornered the majority of the mortgage market in recent years. Many
of the big former building societies converted into banks in the late
1990s. Keep reading where to get a mortgage ››
Before looking for a home, it is sensible to calculate your budget. The mortgages available will largely depend on your income.
Typically, mortgages will be based on 3.25 times the gross income of a single borrower. For joint borrowers, the maximum loan is likely to be 3.25 times the first income, plus one times the second income, or 2.5 times joint income. Figure out how much you can afford ››
There are two basic methods of repaying a mortgage - repayment or interest-only.
Repayment guarantees the loan is paid off in full at the end of the agreed term, but you will need to arrange separate life cover. With Interest-Only, you pay interest only to the lender throughout the loan and pay back none of the outstanding debt until the end of the term. Learn more about repayment ››
Now you've seen the different methods of repaying a loan, it is time to look at how interest is charged. Once again, you have three basic choices: variable rate, fixed rate and capped rate. Find out about your interest payment options ››
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