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Mortgage Section
Mortgage Conclusions

Mortgage Section

Mortgage Conclusions

There are really only two camps that a mortgage can fall into, repayment style or interest only style. And within these there are obviously many different variants. Understanding mortgages is not hard but it is often good advice to seek out help via a mortgage broker because not only will he be knowledgeable in the inner workings, but more importantly have access to the latest news and deals.

Government Recommendations

  • In September 2000, the government gave homebuyers a list of vital checks to help them find their way through the mortgage maze
  • The government suggests buyers should ask these 10 questions before agreeing a mortgage with a lender
  • LearnMoney Comment: If you talk to a mortgage broker or other financial institution like a Bank and ask these questions to get answers you not only understand but are happy with, then you've done a superb job in your research and overall homework. Good luck!
11 CRITICAL MORTGAGE QUESTIONS

1. How much can I afford to borrow? What will the cost be each month, and what fees will I have to pay etc.

2. How can I tell which mortgage rate is best for me?

3. What is the best type of mortgage for me? What do fixed rate, variable rate, discounted or low-start, and flexible mean? And will this mortgage suit my circumstances now and in the future?

4. How can I budget to repay it and what would happen if my financial situation turned for the worst?

5. Why are you trying to sell me an endowment policy, or a pension or an ISA?, Why is it best for my circumstances? and what commission are you being paid?

6. Can I make lump sum payments to reduce the size of the loan?

7. Are there any redemption penalties?

8. Does this mortgage come with compulsory insurance?

9. What other charges will I have to pay?

10. What happens if I can't pay?

11. What about the small print?
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