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Everything you need to know about getting a mortgage

It’s really astonishing that you get taught how to work out the area of a triangle at school but not how to get a mortage. Maybe they expect the parents to teach the kids this too? but what if the parents have never got a mortage themselves? this means that the poorest students are being discriminated and at a huge disadvantage. Ultimately, the school circumiculm is failing these students and this needs to change. Undoubedtly, the terms and conditions of mortgages can changes over time. Nonetheless, the core calcuations of mortages never will so this should be taught. Most people don’t start off as a young adult with enough cash to buy a house (unless you have extremely rich parents). Therefore, you will need to aquire a mortage which is a loan that you can get from a bank to buy a house.


If you’re accepted for a mortgage, you will then enter a payment plan with the bank to ensure it is paid back eventually. The amount you can lend will depend on your savings and income. Typically, your monthly mortgage payments should be no more than 28% of your income. You might be thinking, what does a bank gain from this? the bank will make money by charging interest on the loan. Let’s take a close look at the steps you should take before deciding to take out a mortgage…

Things to consider before taking out a mortage…

1. Get your credit score checked out

To take out a mortage, it’s important to have a good credit score. However, it is still possible to take out a mortgage with bad credit score. It just means your interest rate is going to be much higher (and nobody wants that). It’s also common that you will need to pay a much higher deposit if you have a bad credit score. So keep that credit score high guys! To do this you must pay yours bills or loan repayments on time, EVERY time. So set up direct debts and ensure that you always have sufficent funds. If you do this from when you first start paying your own bills then you will build up a good credit history.

2. Decide whether you want an adjustable or fixed-rate loan

Make sure you research the differences between an adjustable and fixed rate loan so you can decide which best suits you. If you choose a fixed rate this simply means that your monthly mortgage repayments will always stay the same. Many people like this because they know how much they’re paying each month will never change. However, if you choose an adjustable rate loan, the interest may go up or down. This all depends on whether or not the ndex of interest rates increases or decreases as time goes on. Of course, this may work in your advantage or disadvantage. The decision is all yours!

3. Decide which mortgage term you want

A mortgage term refers to the period of time it will take to pay it off. The mortgage terms can vary significantly but usually, banks offer in between 15 – 30 years. Each mortgage term will be adjustable to suit your income and needs. Needless to say, if you decide to take the mortgage out with a shorter mortgage term, you will save lots of money on interest. But many people will simply not be able to afford these high monthly repayments. Therefore, the majority of people usually apply for a longer-term for their mortgage. You should get financial advice on this as it all depends on your personal income and circumstances.