Product Description
Mortgages are a type of secured loan that are taken out to buy property such as a home, land, or commercial building. There are several types of mortgages available today. You can have a 100% mortgage in which the loan will cover the entire purchase amount of the property or you can put a cash deposit down and have a smaller mortgage. Other types of mortgage include repayment, endowment and interest only.

Main Players
The best mortgage providers tend to be the building societies and so you should definitely look at products offered by The Halifax, Abbey, Woolwich and Alliance & Leicester. Occasionally the major banks do have special offers though and the Bank of Scotland is one to watch on this front.

Pros of Mortgages

• A mortgage enables you to buy your home rather than rent it.
• The variety of terms such as interest rates, types of mortgages, etc. means your mortgage can be fitted to your needs.
• Timely payment of your mortgage installments can increase your credit score so you are effectively building a solid credit history as you go.

Cons of Mortgages

• You have to repay the loan even if bad times strike. The loss of your job doesn’t wash with most lenders as an excuse for missing payments.
• Your loan repayment amount can go up with the interest rates so that your monthly installment becomes more than you can handle.
• Repossession can occur with arrears.

Things to Consider When Choosing a Provider
Choosing a mortgage is not an easy process because we are talking about your financial life. Selecting the wrong mortgage product could mean increasing interest rates down the line, early repayment penalties if you change provider and plenty of other charges that you’d rather not pay. The mortgage industry is competitive though and by comparing different providers you will be able to find out what limitations one provider might have over another and which is best for your individual needs. If you feel the need, you might want to consult an independent financial advisor who will be able to give you the best options without the sales patter.
Mortgage companies do exist on the internet. These companies may not be a part of the banks and building societies, but be brokers. A broker will compare several different banks and building societies to find a loan for you. They work for you rather than the bank. Still, you want a company you can trust and one that has a good reputation. Do not just choose the first person who says they can get you a mortgage.

BUYability Summary
Whether you use a mortgage broker, a financial advisor or you do the leg work yourself you should always look at all of the available options from as many providers as possible. In today’s economic climate though it is a lot harder to secure a mortgage than it was a few years ago and so it may be that you have to take what you’re offered for the time being. Most mortgages let your change providers after a few years though so it might be worth getting your foot on the ladder now and changing to a better deal as soon as you’re allowed.