Mortgages are for
the majority of people the only access to owning a property.
The price of property can cost from £10,000 to excess of £1,000,000,
therefore the property equivalent of a loan is often considered.
A mortgage is agreed with a chosen financial lender and
monthly repayments are made. The
borrowers home is at risk if they cannot keep up with the
repayments.
Repayments are
calculated depending on a number of certain criteria.
For example, the annual income of the borrower, the lender
will often lend up to three times the salary.
Secondly, the amount that can afford to be repaid by the
borrower, this will be agreed at the initial consultation.
Thirdly, the number of years that the mortgage is required
for, this is usually twenty five years but can be more or less.
Many organisations
require a deposit, which is usually between five and twenty per cent
of the total cost of the property.
However, there are opportunities for first time buyers,
specifically those with current graduate accounts.
This could include a hundred per cent mortgage where no
deposit is required and low repayments for the first year.
