Suppose you have or want to buy some immovable stuff like a building, home or a piece of land and you are in real need of some hard currency, then you can very easily get a loan against your asset. Your asset is used by the creditor to provide you with a secured loan. So Mortgage is nothing but surrendering of your property for a certain amount of time guaranteeing your ability to repay the loan amount. If you are in UK then it is essential to understand the different UK mortgage available and understanding the jargons of mortgages through some mortgage guide.
In UK, there are usually two mortgage options are for individuals where both have their own advantages and disadvantages:
Repayment Mortgage: This has a very simple formula; the monthly repayments are a part of the capital burrowed along with accrued interest. Here you have a very clear picture of what is going on with the payments and how much you owe.
Interest only Mortgage: Has three options
Endowment: where you pay the accrued interest only and open an endowment policy which covers your life and adjusts the payment to get the final amount when it matures. This is usually taken by thumb rule
ISA: Quite complex, tax free type repayments. This is growing in popularity
Pension Plan: Is where the monthly repayments are done to the pension fund and from where the final payment is completed.
Each has its own advantages and disadvantages. It is usually suggested to go over the mortgage guides to get an insight and highly advised to take the help of UK mortgage analyzers before jumping into a mortgage by your own. To get in touch with one of the best in this breed, click on www.mortgagesorter.co.uk .