Choosing a Mortgage - Where to start
Where to start
You can get a mortgage directly from the lender (banks, building societies and specialist mortgage lenders), or you may choose to use a mortgage broker. You can buy based on “information” only or get advice on a mortgage that suits your needs.
Getting help choosing a mortgage
For most of us, buying our home is the biggest financial decision we ever make. The good news is that you’ll find plenty of help available, although you need to be clear what sort of help you’re being offered. When shopping around, make sure you are getting the help you need.
Repayment methods
The two major ways to repay your mortgage are “repayment” and “interest only”. With a repayment mortgage, you make monthly payments for an agreed period (the “term”) until you’ve paid the loan and the interest in full.
With an interest only mortgage, you make monthly payments for an agreed period but these will only cover the interest on your loan. You’ll normally also have to pay into another savings or investment plan that’ll hopefully pay off the loan at the end of the term.
