Are you looking for a mortgage? Are you buying your first home and you need a little help financially? This article will feature all that you need to know on how to get a mortgage.
What are mortgages? Basically, a mortgage is a loan. For many people, it's the biggest loan that they will ever borrow in their lifetime. With a regular loan, there's no explicit collateral. The lender looks at your credit history, your income and your savings, and determines if you are a good risk or a bad risk. With a mortgage, the collateral for the loan is the house itself. If you don't pay back the loan (along with all of the fees and interest that are included with it), then the lender can take your house. Banks are the traditional mortgage lenders and mortgages rates will vary from bank to bank.
Where to look?
Where can you find a mortgage?
Banks are your traditional mortgage lenders. However, in order to apply for a mortgage, there are certain criteria that you need to meet such as:
- Your age
- Your deposit
- Your income
- Your outgoings
- Your credit and payment history
If you meet these criteria, you are more than a favourable candidate for a bank mortgage loan. Ensure that you have a positive and a stable credit report as this is the key for you to obtain mortgage.
For your information
The best way for you to get a mortgage is to pop into your local bank and seek professional advice as this is a big financial responsibility to take on. In order to find the cheapest mortgages in the UK or the best buy mortgages, price comparison websites are your best option. There are many online mortgage companies which can offer you advice on the cheapest rates for your home mortgage. However, always shop around before you decide to take out one. Mortgages are very competitive and in today's market and economy especially, they are very hard to come by as banks are afraid to lend mortgages due to the lack of collateral and financial security. Other than that, you can apply for a mortgage at your bank or online with a mortgage company. However, always ensure to check their credentials.