Mortgage can be defined as a loan in which the house of the borrower is taken as the collateral. Mortgage is different compared to regular loans, in regular loans the lender checks the credit history, saving and income of the borrower and provides the loan. The concept of collateral exists in mortgage loan as it involves a huge amount of money. In mortgage if a borrower fails to pay back the loan amount then his or her house is taken over by the lender or the bank. Banks are considered to be traditional mortgage lenders. There are mortgage brokers who talks through different lender to provide the best deal. Mortgage broker in Manchester is well known as they save time of the borrower with different facilities. They go through the market thoroughly to provide the best deal to the borrower; they provide quick decisions on important matter on behalf of the borrower and they also take care of all the required formalities and paper work for a mortgage.
Mortgage advisors are responsible for providing useful advice to the clients about the best mortgage deals for a particular situation. A mortgage advisor involves works like selling FSA regulated products and providing best mortgage advice to the clients. Mortgage advisors in Manchester are well known as research has proven that they provide the best solutions and advices related to mortgage. Now I will discuss about some advantages that are provided by the mortgage brokers and advisors.
- Saves the work of the Borrower: Broker and advisors have a regular contact with different lenders and they also have a good understanding of the present market. They can easily differentiate between a good and a bad lender; bed lenders include those people who have onerous payment terms in their mortgage contracts. They contact the lenders and provide the best of them to the borrower, this saves the work of the borrower. It is advised to the borrower to do some research by themselves and not to depend on the brokers or the advisors completely. The borrowers can use mortgage calculators that will help them to compare different mortgage rates and will provide extra knowledge about the condition of the market.
- Brokers have more Access: There are some lenders in the market who work with a specific broker and rely on the broker to bring suitable clients or borrowers. These brokers can get special rates from a particular lender as they have known each other for many years. So this extra access of the broker can become a boon for the borrower as he or she can get the mortgage at a special rate.
- Saves some Fees Money: There are different fees that are involved in taking a new mortgage or working with a completely new lender. These fees include application fees, appraisal fees and origination fees. In some special cases trusted brokers are able to cut down some of the above mentioned fees from the lender, so with this advantage a borrower save a huge amount of money.
After saying this, now I will discuss about different types of mortgages.
- In this type the mortgagor should bind him or herself to personally pay back the entire loan.
- The lender has the right to take over the specific collateral that is provided on failure of the repayment of loan.
Mortgage by Conditional Sale
It is the situation when the mortgagor sells the mortgaged property on different conditions. The conditions are as follows:
- There is a condition that on failure of payment of the mortgage loan on the given date the sale will become absolute.
- The condition is made that after payment is done, the buyer should immediately transfer the property to the seller.
- The possession of the given property is transferred to the mortgagee.
- The mortgagee should get the profits and the rents against the principal or the interest.
- No personal liability should be incurred by the mortgagor.
- The mortgage under any circumstances cannot foreclose for sale.
- The borrower should bind him or herself to repay the total loan amount on a particular day.
- The mortgaged property should be delivered absolutely to the mortgagee.
- A condition should be made that the mortgagee service will be able to recover the entire property from the mortgagor on payment of the entire loan amount on the given date.
Mortgage by Deposit
- In India and England this type of mortgage is called equitable mortgage.
- In this mortgage a debt should always be there.
- Title deed should be deposited to the lender.
- The title deed should be the security for the entire debt.
- This kind of mortgages does not require any kind of registration.