Finding a Mortgage
Finding the right mortgage for you can be quite difficult as there are so many different types of them available, all with advantages and disadvantages. This section will explain briefly the major types of mortgage, to help you find the right one for you.

Sorting it Out
Before making an offer on a property, you should have a mortgage offer approved in principle. This simply means, after credit and other checks the mortgage has been given the thumbs up for you to make an offer, this however is not guaranteed, but is almost certain to be ok when approved.

What Type of Mortgage though?
There are many types of mortgage available to you, and in the table below some of these will be explained for you. However, your best to talk to your mortgage advisor to help find the right mortgage for you.

Mortgage Type Details Advantages Disadvantages
Interest Only This is when the Interest on the mortgage is repaid only. Costs less per month.
Good if you have separate investments which can pay off the mortgage in full when they mature.		 The original outstanding balance does not decrease.
The saperate investments may not be enough to pay it off, leaving you with a large amount of money to pay it off.
Capital + Interest This is when the mortgage is paid off over a certain time period, usually 25 years, and the balance gradually decreases, paying both the interest and capital. The balance gradually decreases. Costs more per month.
Other investments may cost less in the long run.
Retirement Mortgage This is when the mortgage is paid off until retirement, and when you retire, your mortgage is paid off and you receive a pension. Ideal for self employed people.
You get a pension when you retire, and no worries about a mortgage.		 You have to pay it off until retirement, around 30-40 years.

Also see the Home Buying Jargon Section to explain mortgage related terms.

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