What is a mortgage?
A mortgage is a loan secured by the property you arrange the loan
(mortgage) for. In other words the property is the collateral in case you become unable to pay the
mortgage payments. This is why the mortgage lender goes to great lengths to ensure that the property value is equivalent to the loan they make against it.
Mortgage rates vary depending on the deposit
you have available. The credit crunch has reduced availability of mortgages as lenders try to limit their exposure to
What deposit will I need for a mortgage?
Generally deposits required
for the mortgage are 10% of the loan.
Although shared equity mortgages are a way for first time buyers to buy a home with just a 5% deposit.
However interest rates will be higher the lower the deposit.
Raising a larger deposit of say 10 to 25% will unearth
the best mortgage deals with lower interest rates.