What are Mortgages?
A mortgage is different from other types of loan because it is larger, normally borrowed for a longer period (the mortgage term), typically 25 years, and it is secured on your property. This means that, if you don’t keep up the monthly mortgage payments, the mortgage lender could take back or repossess your home and sell it to try to recover the money you owe them.
This step is only taken by lenders as a very last resort, but the possibility that you could lose the roof over your head if you ever stopped being able to afford your monthly payments makes taking out a mortgage a very serious commitment. It’s certainly not something you should rush into or feel pressured into doing because, for example, all your friends are starting to buy homes.
