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Mortgage is a debt instrument giving conditional ownership of an asset, secured by the asset being financed.
The borrower gives the lender a
mortgage in exchange for the right to use the property while the mortgage is in effect, and agrees to make regular payments of principal and interest. The mortgage lien is the lender's security interest and is recorded in title documents in public land records.
The lien is removed when the debt is paid in full. A mortgage normally involves real estate and is a long-term debt, normally 25 to 30 years, but can be written for much shorter periods. |
Types of Mortgage:
1. Base rate Trackers
7. Bridging Loans
12. Buy to Let Cashback deals
2. Capped Rate
8. Current account Mortgages
13.Discounted Rate 3. Endowment mortgages 8. Expatriate Mortgages 14. Fixed Rate 4. Flexible Mortgages 10.Interest only mortgages 15. ISA Mortgage 5. Mortgages in principle 11. Pension Mortgages 16. Repayment mortgages 6. Standard Variable rate
Participants in Mortgage In general terms the main participants in a mortgage are: Creditor: The creditor has legal rights to the debt secured by the mortgage and often makes a loan
 to the debtor of the purchase money for the property. Typically, creditors are banks, insurers or other financial institutions who make loansavailable for the purpose of real estate purchase. A creditor is sometimes referred to as the mortgagee or lender. Debtor: The debtor or debtors must meet the requirements of the mortgage conditions (and often the loan conditions) imposed by the creditor in order to avoid the creditor enacting provisions of the mortgage to recover the debt. Typically the debtors will be the individual home-owners, landlords or businesses who are purchasing their property by way of a loan. A debtor is sometimes referred to as the mortgagor, borrower, or obligor Other participants: Due to the complicated legal exchange, or conveyance, of the property, one or both of the main participants are likely to require legal representation. The terminology varies with legal jurisdiction; see lawyer, solicitor and conveyancer. Because of the complex nature of many markets the debtor may approach a mortgage broker or financial adviser to help them source an appropriate creditor typically by finding the most competitive loan.
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Mortgage
