Mortgages - Advantages and Disadvantages 

The advantages and disadvantages of having a mortgage

Having your own home is the goal for many people in the UK. Yet, in order to buy a house, most of us will have to take out a mortgage. It's either that or having the prospect of staying in rented accommodation for the foreseeable future. Yet, taking out a mortgage is a major life decision and one that should only be taken after much consideration. Here are some pros and cons to help make up your mind regarding taking out a mortgage.


- Longer-term mortgages – With the average house price in the UK pushing towards £300,000, a mortgage is the only way for most people to own their own home. However, longer-term mortgages are becoming available. These 30-year mortgages mean although it's a longer commitment, it can be a more affordable option than before.

- Cost-effective borrowing – The interest rates on a mortgage are generally lower than for other types of borrowing. Lenders can offer a variety of mortgages such as fixed-rate, tracker or discounted deals. It's possible to find a specific mortgage deal that's ideal for your circumstances and also make it an affordable option.

Help to Buy – The government has introduced a number of initiatives in recent years designed to make taking out a mortgage more affordable. Shared ownership, for example, can make buying a home a viable option even in more expensive areas.


- Debt – By taking out a mortgage, you're taking on a commitment to pay back a lot of money within a certain time period, including interest. Even over 25 years, you'll be paying a lot more back than you borrowed.

- Secured Loan – A mortgage is a secured loan against your property so if you can't keep up with repayments, you could end up losing your home.

- Various fees – In addition to the interest you pay, there can be a surprising amount of other fees to pay including valuation fees and conveyancing costs.

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