There are many different kinds of mortgages, designed to suit different situations and needs. Basically, a mortgage is a loan that funds the purchase of a home and the repayment of which can be spread over different periods of time.
The repayment period can be customised depending on your individual situation. Also, interest rates differ depending on lender, period of repayment as well as the property. Types of interest can also vary, from fixed interest rates to variable interest rates.
Needless to say, the longer the repayment term, the more the interest that is accrued. A mortgage that is spread over 25 years will generate more interest, although the monthly instalment will be smaller than the same amount borrowed over a shorter term. Then again, there are special products such as the lifetime mortgage designed for over 60s. These involve compounding the interest accrued without warranting any repayment should the customer choose to do so.
There are several lending companies offering a host of different mortgage types. For first time borrowers, the subject of mortgages and choosing the right mortgage can be quite complicated and difficult to grasp. Thankfully, there is plenty of information available online, as well as comparison tools to help point us in the right direction.
Financial advice about various options available should be sought before choosing your mortgage. It is also important to understand how flexible the mortgage is, and know exactly what the terms and conditions are, and whether they are right for you, bearing in mind not just your situation today, but also your future situation.