What is a Mortgage
A borrower may raise long term finance (upto 25 years), normally
for the purchase of a house, by pledging the house purchased as
security for the loan by means of a mortgage.
A Mortgage is a formal legal document signed by the borrower
- pledging his or her property
- giving the lender legal rights over the property,
including the power of sale if the borrower is unable to
repay the loan
The word "mortgage" is consequently used to describe a long
term loan which provides money for the purchase of the property.
Mortgages are available from many banks and building societies
and specialist companies. People who borrow by means of a
mortgage should appreciate the fact that of they fail to repay,
the lender can sell the house and make the borrower homeless.
There are three methods of repaying a mortgage loan
The difference between them is the way in which the principle
amount is repaid.
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Mortgage Menu
