Mortgages
A mortgage is a loan to a company or individual specifically for the purchase of property or real estate. This may mean a house, business premises, land on which to build or the materials to construct a property. When a person or business takes out a loan in the form of a mortgage the financial house providing the loan effectively owns the equivalent proportion of the property until such time as the loan is repaid.
The value to the financial institution of a mortgage loan is the profit from the interest that they charge to the borrower. When a bank loans money to an individual for the purchase of a building they will charge fees to cover the initial administration of setting up the loan. An interest amount will be agreed – this may be fixed for a determined period or may be variable and fluctuate with the Bank of England interest rate.
A bank will only offer a mortgage when it has evidence to suggest that the borrower will be able to pay the regular payments for the full term of the loan. Proof must be provided of an acceptable level of earnings for a minimum of one year, along with details of any other debts which must be paid out of the monthly income. Insurance is an essential purchase for the borrower – this protects both the borrower and the lender in case circumstances change and the borrower is unable to repay the loan. It is a harsh fact that the cost of a loan varies depending on the financial position of the borrower and therefore the risk that they will default on the payment of the mortgage.
Equity Release
The simple way to release equity from your home.
UPVC Sash Windows
Double glazing and UPVC sash windows are available now.