Topic Summary
For most people, a mortgage is an essential part of buying a home. A mortgage is a loan that covers a percentage of the cost of a residential property (house, flat, apartment), which is repaid over a number of years with interest until the property is owned outright.
Mortgage Application Process:
- First, you make an enquiry to a mortgage broker or bank. They will gather your details, including information about dependents, your credit file, proof of income, and bank statements.
- You will then need to submit income documents such as payslips or P60 salary tax statements. The lender will conduct a property valuation to ensure the property is suitable, meaning that if the lender needs to repossess it, they can recover the loan amount in a timely manner.
- Finally, you receive a mortgage offer, which means your finance documents have been officially approved.
Question
A mortgage is:
Discussion
Is getting a mortgage worth it? Consider all points of view.
How it works in real life
Interview 10 friends or family members: How many have mortgages, and at what age did they obtain them?