What are the essentials you need to know about mortgages?

1. A deposit — some banks can allow you to pay as little as 5% deposit. However, you need to be reminded that generally, the bigger your down payment is, the better the deal you’ll likely to get.

2. Work out what you can afford each month.

What do you spend your money on every month? List all of them and get the total. Deduct the amount from your salary. Set aside some cash for bills, and the number you’ll end up with is what you can afford.

Additionally, this post will also help you how to compute for the size of mortgage you can get, and after that, it’s time to decide which one you’ll choose.

Your options:

1. Fixed rate mortgage

2. Variable rate mortgage

3. Tracker mortgage

Now the most important info: I should give you a warning on doing your best to keep up with mortgage payments. If you don’t, your house could be repossessed.

There are other options which you’ll need to study and listen to from the video produced by Virgin Money, and which Lifehack is featuring here to help you out with the difficult task of choosing the ideal mortgage you can comfortably afford.

Featured photo credit: Mortgages in 3 minutes/https://www.youtube.com/user/virginmoneyuk via youtube.com

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