Mortgage is a method by which you can secure a loan using your property as collateral. You can get a mortgage from lenders such as banks, insurers, financial institutions, building societies and specialist mortgage lenders. Using the services of a mortgage broker is another way by which you can secure a mortgage.

The amount received can be used to meet financial requirements for improvising your home, college education, even getting your dream vacation. You are charged a certain amount of interest on the mortgage amount, which can be of a fixed rate or a variable rate.

The loan amount received by way of mortgage has to be paid over a period of time. There are two methods by which you can repay your mortgage amount and these are ‘repayment’ and ‘interest only’ methods. Repayment mortgage allows you to make monthly repayments for an agreed period of time, until you pay back the loan, with the interest amount. In Interest-Only mortgage you have to make monthly repayments for an agreed period, but the amount paid here is only the interest amount, which has to be paid on your loan. The principle loan amount has to be paid at the end of the agreed period.

Before you take out a mortgage you need to assess if you are in sound financial position to pay back the mortgage amount.