Mortgages Explained

A mortgage is a loan secured on a property, which is also referred to as a home loan. A mortgage is usually acquired from a lender, i.e. a bank or building society, to buy a residential property. However, remortgaging is becoming increasingly popular. Remortgaging means switching mortgage lenders without moving.

Mortgages are long term secured loans (a loan for which the borrower pledges collateral that will be forfeited to the lender if the borrower fails to repay the loan), usually repaid over a fixed period known as a mortgage term. Not all mortgages run over a fixed term. Flexible mortgages allow the borrower to pay the mortgage off early or in some cases late. With a flexible mortgage the borrower may also be able to make early payments, take payment holidays and even borrow back some of the home loan. This form of mortgage is often beneficial to those whose income fluctuates from month to month, or those who have varying expenses and may need to reduce their mortgage outgoings in order to cover these.

Click here for a list of website which will add further explanation to what a what is and how it can help.