{"id":5721,"date":"2015-11-02T12:23:16","date_gmt":"2015-11-02T12:23:16","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=5721"},"modified":"2019-08-21T19:53:00","modified_gmt":"2019-08-21T19:53:00","slug":"an-introduction-to-mortgages","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/an-introduction-to-mortgages\/","title":{"rendered":"An Introduction To Mortgages"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p><span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-e0hjs50o1dpwr02fk7sagdu3kzgyi0hr\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">Mortgages<\/span> can seem daunting, complex, and stressful. But in actual fact, <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-dq22zg3tslrsskmdb7qi8eqyfq6tfb29\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">mortgages<\/span> are nothing more than a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-sdgov3nx0pmbcgz5nzsfut87qei74l08\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/term_time\">long-term<\/span> <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-xm9v0134ej49ge3izt8v9fz9tgajg90d\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">loan<\/span> taken out for the specific purpose of buying a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-j3irnrs6udhmr6ytqpbmtt1frqvcxtyh\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span>.<\/p>\n<h2>Mortgage Terms<\/h2>\n<p>To understand the details of a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-sx20b802fhp5cn4kz27wuhhyetxgeez3\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">mortgage<\/span>, there are some specific <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-kpwtg44j3kvae97nkpjapc02ff6hngq9\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/contractual_term\">terms<\/span> that are useful to know &#8211; as with most financial products, understanding what you are getting into is very important. In the UK, when you\u2019re first getting on to the <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-1zud7bcj8fe1r1nax79bmn71r8kp8kkh\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span> ladder, a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-wpvunwsmq4eksw6bvwbgiutat6223bd7\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">mortgage<\/span> is often the result of tireless saving and maintaining a good credit rating with existing <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-hk7iamw40rmamskwn1x3sgee8tbdbahl\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">lenders<\/span>.<\/p>\n<h2>Types<\/h2>\n<p>There are many different types of <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-qlqs663j8eyn2oyzmmhi52ydd9nqumzq\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">mortgages<\/span> available and a huge number of organisations offering them. Your circumstances, the <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-m5qb5t3el0kz101rjxyvb28kv9kxggbi\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span> you are considering buying, <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-k1857ocyxxkfhv853795vjyt1gad7x0g\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/market_economics\">market<\/span> conditions, and timing will all play a part in deciding which <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-3oma6bovdqf34ek2h73tz1j7msre3op4\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">mortgage<\/span> is most appropriate for you.<\/p>\n<h2>Rates<\/h2>\n<p>For some people, a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-xhb1hkluu0lmfv293o6iw0v43m42qril\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/fixed-rate_mortgage\">fixed rate mortgage<\/span>, where monthly payments stay the same is incredibly important, however, this can be expensive should the <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-gbpyo8rky757nqhvhozzwgmz0ydd489w\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">lender<\/span>\u2019s standard <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-396ym31kb9jugrihnj968jcusraab3rf\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax\">rate<\/span> or the Bank of England base rate change. For others, a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-q25vo0qywfwmun40h2u3drv1oek9wdc8\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/floating_interest_rate\">variable rate<\/span> mortgage can be more appealing and allow them to save money, however, there is an element of risk when involved in this financial product. <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-p3bvreptmdvl5fsnwfaqlzmg12k2t6d9\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/floating_interest_rate\">Variable rate<\/span> mortgages can change, and change significantly, if either the <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-da5vieubkj8pkybutu6s3wxlf1h2awul\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">lender<\/span>\u2019s standard rate changes, or the Bank of England changes its base rate. There are also mortgage products that take elements of fixed and variable <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-styicgx4lukqecaqxhywhls7rmgjv7e1\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax\">rates<\/span>, sometimes fixing the <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-la5ahke22t5cva5qhised0es2m22fy2c\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax\">rate<\/span> for a set number of years. These can prove attractive for young families who are having to budget carefully in the early years of <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-fbffbiddd85df9ecmo4t2wkogvonmfr4\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/owner-occupier\">home ownership<\/span>.<\/p>\n<h2>Other expenses<\/h2>\n<p>Whilst a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-34z2kdia3ycvca7gpuse1wtlvv3d4ojn\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">mortgage<\/span> will cover the cost of physically buying the <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-pdgo7xjml77ishsgphkpii3z00xq6sm8\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span>, there are other considerations that must be looked at. These will include whether you should <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-svibo72hr47v3in6hnj7qgmwdc98svou\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">borrow<\/span> a larger amount and retain some of your savings, or put down more of your savings and <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-57570m0czch6rf0wcwtbp48haox8mjlr\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">borrow<\/span> a smaller amount. When making this decision, consideration should also be given to how long it takes you to accrue savings, and also how much cash you will initially require to cover moving costs, the cost of new furniture and furnishings, as well as legal fees, once the new <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-k72eh3bw47f9f63y154f177hcr9p6chl\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span> has been purchased.<\/p>\n<h2>Approval<\/h2>\n<p>There are often times when a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-9lmakphqoxk46806ycrf4olgrmpu1ywb\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">mortgage<\/span> will take time to be approved and for the funds to become available. This can be incredibly frustrating, particularly for first time buyers or those wanting to secure a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-60va5oi1vtkqmwet69yc14k7cju5sahn\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span> quickly. A bridging <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-xign6rn6ur94pn2wn74uw0114enxn7dt\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">loan<\/span> can offer the ideal solution in these circumstances. <a href=\"http:\/\/www.bridgingloancenter.co.uk\/\">Bridging loans<\/a> are <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-6mom8sbfj4g1n1ap07lg8uhdowu3gak6\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/term_time\">short-term<\/span> <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-2vvfu9zwfka5r9hgzu1c7q004liqz4lz\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">loans<\/span> that bridge the gap when you\u2019ve found the perfect <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-qleniehv14itq2rgdj7rm7qv6gbj3r43\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span> to purchase but the cash isn\u2019t available quickly. These <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-t43qq54o4m8q6g10hv8iikl4poyv4sbv\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">loans<\/span> can be approved much more quickly than <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-y0r3fkzzk3ydu9zzh7jslvc19vgtp5bz\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/term_time\">long-term<\/span> <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-18rd6vn698cu8s73fqfj0j1tdv1oi4mo\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan\">loans<\/span> such as <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-d222j1ai25n39xuomg15uqpc78twxo8j\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">mortgages<\/span> and, whilst they require significant underwriting, they often have a much shorter application process.<\/p>\n<p>&nbsp;<\/p>\n<p><span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-mzde88xc2t0ssz06xyqon678ulvpm1m6\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan\">Mortgages<\/span> are major a financial product that need to be carefully considered and researched before you take one out. Whilst they can provide a real sense of achievement with respect to owning a <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-9vgz9i1r5zi1zmrtum5gcx7df265wtql\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span>, they are also a very significant commitment and must be treated with the necessary respect. In many cases, and certainly over the long <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-fuh2jseeyeob0zln9m1ynl1nzfe7vtwb\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/contractual_term\">term<\/span>, <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-i9g6cx5khz05iatifk1hiy6o8oirf34d\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span> prices increase and this can provide positive <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-ml29n23q95q5dq44kehqcgcxxvuk1j0f\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/equity_finance\">equity<\/span>. However, there may also be times where the amount owing on mortgage repayments is more than <span class=\"textannotation disambiguated wl-thing\" id=\"urn:local-text-annotation-5pnv3lb8on5oe3js0bgyp488lsfz9t05\" itemid=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property\">property<\/span> is actually worth. This must be considered and as with all large purchases, seeking the advice of an independent financial consultant is recommended.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mortgages can seem daunting, complex, and stressful. But in actual fact, mortgages are nothing more than a long-term loan taken out for the specific purpose of buying a property. Mortgage Terms To understand the details of a mortgage, there are<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/an-introduction-to-mortgages\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":5722,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[7,15,17],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2015\/11\/mortgage-image.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/an_introduction_to_mortgages","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/5721"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=5721"}],"version-history":[{"count":4,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/5721\/revisions"}],"predecessor-version":[{"id":20605,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/5721\/revisions\/20605"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/5722"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=5721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=5721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=5721"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=5721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}