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Introduction

Welcome to the first of our mortgage articles specifically written to support First Time Buyers. Our suite of mortgage article for First time buyers covers everything you will need to know as a First Time Buyer to understand, plan, save for and secure your first mortgage.

You may already be familiar with mortgages and our website but, if you're not, here's a quick guide to help you make the most of the mortgage information and tools that we provide.

Each mortgage section is specifically tailored to support different people in different situations who are commonly looking to secure a mortgage on a property. Each mortgage article can be read independently or as part of the mortgage package, just like reading a book. Each mortgage article will have a link to the previous article and the next in the series, there will also be featured links to calculators and supporting information for First Time Buyers.

Some people prefer to jump around our mortgage articles and tools rather than follow the mortgage article in sequence, that's fine with us. We have added a quick links box to the right which features Articles, Information and online calculators and tools for First Time buyers. Simple click on the topic to see a list of the most popular content. The quick links tool does not contain links to all our First Time Buyer articles and calculators, just the popular ones. If you are looking for something specific and can't find a link, use the search tool.

Understanding Mortgages

A mortgage is basically the same as a normal loan and interest is calculated in the same manner. A mortgage is typically repaid over a longer term than a loan an is used to buy property or land. The mortgage is secured against the property or land. In the event that you are unable to meet the mortgage repayments, the lender can repossess the property or land and sell it to over the costs of the mortgage loan. If the sale does not meet the outstanding amount of the mortgage, you may also need to make an additional payment to clear the debt. When a property is worth less than the mortgage amount, the property is considered to be in negative equity.

Most mortgage deals are calculated over a 25 year repayment period though you can take a mortgage which is shorter or longer in certain circumstances, typically this will depend on what deals the mortgage provider offers.

The longer a mortgage repayment period is, the more you will pay in interest so it makes financial sense to repay your mortgage as quickly as your financial situation allows.

Most mortgages will allow you to make a single additional repayment once per year. If you receive an annual bonus or other extraordinary income, it is worth making the payment to reduce your mortgage and associated Mortgage interest payments.

Next: What types of mortgages are there?