1. Must my mortgage be repaid by a certain age?
Your building society will probably want you to have fully paid off your loan by your retirement age, but if you have stacks of pensions due to come in, then the bank may consider these as suitable income. Also, some older people are now mortgaging their property to raise cash, with the intention that the house is sold on their death to clear the mortgage.

2. Should I find my house first?
You cannot get the mortgage fully agreed until the building society has seen the house to make sure that it is suitable security, but you will also want to ensure that that you will get a sufficient mortgage before making an offer. Therefore, approach the bank first, get an offer in principal and then find a house in your budget.

3. What is a self cert mortgage?
A self cert mortgage is a mortgage where you do not have pay slips, normally because you are self employed. Instead you certify for yourself how much you are earning, typically via accounts.

4. What is a flexible mortgage?
Again, this can be popular with self employed people, plus those who have large bonuses or are seasonal workers. Basically you have a existing account with a huge overdraft. The overdraft initially pays for the house and as you are able to pay cash in, your overdraft reduces. When you receive bonuses etc you might pay off a large chunk of the mortgage, or for seasonal workers you could pay off heaps and then reduce payments when you are earning less.

5. What is a fixed mortgage?
This is a type of mortgage in which you and your lender have agreed that for a fixed length of time you will be paying a fixed interest rate. Regardless of what happens with the base rate, your payment stays the same.

6. What are redemption penalties?
If you have agreed a special offer with your lender, they are going to want you to stay with them for a minimum period to make certain that they make a profit on lending you the cash. Therefore, there is an enforced minimum mortgage period and if you try to quit the mortgage before the end of this period, then there are charges. For instance, 3% in year 1, 2% in year 2 and 1% in year 1.

7. Is insurance compulsory?
It will depend on the building society lending you the cash and your precise circumstances. But even though it is not obligatory, if you have dependents then it is a very good idea to have life and perhaps critical illness insurance. This way, if you are taken seriously ill or even die, the mortgage is paid off instead of your dependents possibly losing your home as well as you.

Written by Keith Lunt of http://www.comparemortgagerates.co.uk. If you want to know more about how to compare best mortgage rates, call in!

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