Mortgages.
The mortgage industry is a big and influential field, affecting the lives of a large number of the population. Like many other specialist fields, the mortgage industry has its own language; it is sometimes difficult to even understand what a mortgage involves. With all the talk about fixed rate mortgages, offsetting mortgages, second mortgages, it is tempting to ask: what is a mortgage?

What Is A Mortgage For?
In brief, a mortgage is a special or specific loan taken out against the value of a property, to be repaid over a specific period of time, and under specific conditions. The property is set against the loan to guarantee that the loan will be repaid. The mortgage is often only 75-90% of the full price of the property. A mortgage allows you to pay the entire sum of the cost of a house without having to find the lot from personal loans and credit cards.

What Types Of Mortgage Are There?
The trouble with trying to answer a question like 'what is a mortgage' is the amazing variation of the mortgages available. A customer who shops around may find everything from a 6 month contract with low interest rates but needing constant negotiation, to a 30 year fixed rate mortgage which carries a penalty for early repayment.

What Is A Mortgage Interest Rate?
This is the most important factor when it comes to deciding who gets to lend you the mortgage. The client will need to look around, and search for a low interest rate. The lower this is, then the lower the total cost of your mortgage will be. Do not look for a 'headline interest rate', but instead check the APR. This is the rate which will effect your payments.

What Is A Mortgage Advisor?
Generally, a mortgage advisor is a member of the lending society who is there to offer you advice on your mortgage, give you the options that exist, go over your credit history and your proof of income, and try and provide you with some of the additional items that can be put into a mortgage.

What Is A Mortgage Broker?
Unlike an advisor, the mortgage broker is an independent person or body who will look at the available mortgages, and suggest one that is suitable for you. They will then draw up the contract between the client and the lender. They will commonly charge for this and all the other services that they provide.

Finding A Mortgage.
The best way to find a good mortgage is to look around, and compare all the offers that you can find. You can take the advice of a broker if you wish, and let them give you the best options, or you can search around for yourself, and find a mortgage that does not cost the earth, but gives you plenty of options. Watch out for low interest offers that contract you to stay with the company or face hefty charges. Also beware of becoming trapped in a mortgage with a large interest rate, you could be paying far more than you bargained for. However, with the mortgage industry growing all the time, you should have plenty of options, and remember, when there are a lot of people offering services, it is a buyer's market.

Ian D. Major is the editor of Affordable Mortgage Search

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