Mortgage

BUYING a home is one of the biggest commitment you will ever make in your life. Get this decision right and you are well on the way to laying down solid financial foundations.

Most people their home with a mortgage. A mortgage is the longest financial commitment you will ever make, typically extending over 25 years of your life. However, the mortgage maze has never been more complicated. Over the past five years, the market has undergone a massive transformation - new players have taken their place on the financial scene and new types of mortgage present an increasing choice for home loan-seekers.

Thankfully, the day when hopeful borrowers had to queue outside a local building society for a loan have long gone. But in place of queues there is now almost a mortgage glut. Banks, insurance companies, so-called centralised lenders and other personal finance players are all vying for your business and offering a wide range of loan schemes. Add a thriving remortgage market - where a borrower changes lender to arrange a better deal - and it is no surprise that many people find the mortgage maze a daunting process.

Yet do not despair - obtaining the right mortgage is possible provided that you follow a few basic steps.

I want a loan to buy home of my dreams. Where do I start?

The key area to sort out first of all is affordability. There is absolutely no point more than you can afford. If you do, you may end up with the home of your dreams, but also with recurring financial nightmares while you scramble together enough money every month to meet your mortgage commitment.