Online Mortgage Advice Articles

How Does a Mortgage Work?

Posted in: Latest News
You might have a lot of questions about the industry in general, but one thing that you probably have to ask yourself before you start to approach any of the other topics is “how does a mortgage work?”
It’s a pretty valid question and one which you should definitely consider before you start looking into the best solution for you. Knowing how a mortgage works is vital if you are going to get the most from the experience, both in terms of finding the best mortgage adviser, and a mortgage deal that fits with your goals and lifestyle. With that in mind, let’s take a look at some of the things you need to know. 


So, what’s a Mortgage?  

Okay, let’s take a look at what a mortgage actually is. Your typical mortgage is something which is given as a loan to buy a house or a property. In every circumstance, a mortgage loan/deal is not guaranteed. You have to apply for a mortgage. Typically, what this means is that you sit down with someone, you ask to borrow a set amount of money, and they take a look at your credit history, your financial situation, your dependents, and a whole selection of other criteria, and then they tell you how much you are eligible to borrow, and estimate the repayment and interest rates.
Of course, this is a very basic overview of the process. Just like with people in general, every person, lifestyle and mortgage can be completely different - it's why it is so important to find a mortgage advisor that is open, transparent, friendly and clear to communicate with - in order to make what is a very serious process as exciting as it should be - you are possibly buying a new home after all!

Making Payments

With most mortgages, you have to provide a financial deposit, this will typically be between 5% and 25% of the full loan amount.

It’s important to make payments on the mortgage as and when you are told to, and have agreed to. It's important to get a mortgage that fits your lifestyle while offering you the best rates in regards to interest and fees. Mortgages can vary and be a variable rate, or come in the form of something called a fixed or frozen rate, which is where for a period of a pre-agreed amount of months, you only have to pay a fixed amount each month.
However, a good mortgage advisor will never pressure you into a mortgage deal that isn't the best for you in the long term. It's important to review the long term implications of the path you take in getting a mortgage. It's not all about getting the cheapest repayments for the first 1 or 5 years, it's about the additional fees, commitments and economic climate too - so ensure you choose a mortgage advisor that can translate all of this into clear and understandable language for you.

After all, It is important to note that until you pay off the loan in full, you do not own the property, and the mortgage provider has the right to take the property in extreme cases if you don’t pay your mortgage on time and in full.

Different Lenders and Providers

Who provides your mortgage loan can often be important depending on what it is you want from your mortgage and agreement, in regards to payments, interest and flexibility. Some providers are very generous and give you a lot of different options, and other providers are less inclined to be considerate with additional options, however, offer a lower entry-level in regards to income and credit history.

It’s important to find a provider that is going to work for you, carefully weighing up options to secure the one which will work best for your needs. 

Choose the best Mortgage Advisor

Depending on whether you get mortgage advice from a mortgage advisor like Love Mortgages, or whether you tackle the optional route of going to a handful of lenders directly can have a significant impact on the mortgage deal you end up with and therefore could affect life decisions you make during the term of the loan. Therefore it's so important to get the advice you need from a reputable, friendly qualified mortgage advisor before committing to anything. We take pride in the amount of time we save all our clients. We're efficient, dynamic and flexible with how we do things - to fit around your needs. Gone are the days where you need to dress smart and spend 3 hours taking a trip to see your local bank manager for a consultation and interview. Nowadays, as an independent mortgage advisor, Love Mortgages are able to access all of the best deals and rates allowing us to mould as many options to the lifestyle you have. Whether you are looking for a mortgage advisor in Chester, Mold or anywhere in the United Kingdom, Love Mortgages are able to support you in securing the best mortgage deal either in person (in a COVID-secure way of course), or over the phone, Zoom, and email. Call us today for a no-obligation chat on 01244 90 44 10 or click here to send us a message and we'll get back to you as soon as possible.

In conclusion, a mortgage is simply a good way for people to get the kind of money they need to buy a property. It’s important to note that when it comes to getting a mortgage, you should definitely think about all of the different options that you have available because this will make a massive difference to the deal you walk away with. There are numerous different choices, and they have all been designed to give you the best possible outcome, so you should choose a mortgage advisor that has access to all available lenders, friendly communication and the clearest advice before making a decision. 

Quick Calculator