What Are The Essential Facts About Home Mortgages?

Short of scoring the winning goal in a World Cup Final, the most important thing the vast majority of us will ever do is to buy a home. And to finance what is our largest single purchase, we need a mortgage.

More than simply a loan of a very large sum of money, a mortgage should be regarded as a partnership between you and your lender. It is, after all, the roof over our heads: shelter, that most basic of human needs.

Paradoxically, despite its fundamental role in our lives, the word 'mortgage' is the one word in the English language that's virtually guaranteed to bring on a sense-dulling headache.

Essentially, a mortgage is a form of loan used to buy a property. If a mortgage is not repaid, however, a court order for eviction will be sought and the property put on the market to recoup the loss to the lender.

There are two main types of mortgage, interest-only and repayment. Though, with the estimated 7,000-plus mortgage products available in the UK, you would be forgiven for thinking otherwise.