Mortgage- loan taken out to buy a property, paid in monthly installments

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Mortgage- loan taken out to buy a property, paid in monthly installments

Advantages

  • Allows you to buy a home and spread cost over a long period where you wouldn't be able to afford it outright
  • FIxed or tracked mortgages make it affordable and planning expenditure easier
  • Payments tend to be lower than the rental cost of the same property.

Disadvantages

  • Increase in interest rate can affect your ability to pay back installments
  • You need a good credit rating and life insurance to apply for a mortgageF
  • Failure to pay negatively affects credit rating
  • Non-payments result in the property being repossessed.

Evaluation

Comments

Philip Parker

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Hello, is it reasonable to take a mortgage loan? As for me, you overpay a lot in the long run and the interest is very high. I think that this approach is not logical and completely failed in terms of financial literacy.

Alexia48

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Of course, it is reasonable to take a mortgage loan. You can get a house or apartment right now, have your own place to live, and pay for it with time.

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