But the more you look into mortgages the more you realise that it's not quite so simple after all.
The mortgage market is very competitive, building societies and banks are forever updating and extending the range of mortgages they offer, adding to the extensive list of products that are already available.
When deciding on what mortgage product best suits your needs the most important points to consider are how you will be paying back the capital you have borrowed and the interest that has been added to it.
Paying back the capital
The capital part of the mortgage can either be paid back a little bit each month over the term of the mortgage (repayment mortgage) or it can be repaid at the end of the mortgage term (Interest only or endowment mortgages).
Repayment mortgages - With a repayment mortgage each monthly payment pays off a little of the underlying debt and interest on the loan. At the end of the term the mortgage is guaranteed to be cleared.
This is generally considered to be the most easy to understand and least risky mortgage type.
Interest only mortgages - With an interest only mortgage you pay-off the interest on the loan but not the capital. At the end of the mortgage term you are expected to repay the total of the capital that was borrowed, how you do this is up to you.
With this type of mortgage care needs to be taken that adequate procision is made to have sufficient funds available to pay of the capital portion of the mortgage at the end of the mortgage term. This type of mortgage could therefore be considered to be riskier than a repayment mortgage.
Endowment Mortgages - With an endowment mortgage you use an endowment policy to provide life insurance and to save the funds to repay the capital portion of the loan at the end of the mortgage term.
However the inherent danger with this type of mortgage is that if the investment performs badly, you could face a shortfall on the capital portion of your mortgage at the end of the repayment period.
Paying the interest
There are a number of ways that the interest can be paid on a mortgage.
Variable rates - With a variable rate mortgage you pay the current going rate on your loan. The mortgage rate changes every time interest rates change or, as in many cases, the overall effect of any interest rate changes is calculated once a year and payments are altered accordingly. Whatever kind of mortgage you start with, it is likely to change to variable rates at some point.
Fixed rates - With a fixed rate mortgage the interest rate is fixed for an agreed period - often two to five years. The advantage of a fixed rate mortgage is that they help in budgeting and are attractive if you think rates might increase. You do not benefit if rates fall, and will face penalties if you try to quit.
Capped rates - These are similar to fixed rate deals but if rates fall you pay the lower rate. Once again this can be a good for budgeting.
Cash back deals - This is when lenders offer money back if you take out a particular product. However, you may find that there may be substantial penalty charges if you wanted to switch lender in the early years.
Discounted rates - With a discounted mortgage the borrower is offered a discount off the lender's variable rate. The rate paid will fluctuate in line with changes in the variable rate. The discount applies over a set term, usually two to five years as with fixed rate mortgages.
Rhododendron and azaleas (a type of rhododendron) head the list of evergreens with some 700 species. Hardy and long-lived, these ornamental woody plants have flowers of all shapes, colours and tints.
Well-liked types are the pink pearl, and the Rhododendron maximum, with its large pinkish flowers. Hardy hybrid species also are the Boule de neige (white); the Abraham Lincoln and Lady Armstrong (pink); the Everestianum (purple); and the Caractacus (red).
Rhododendrons won't grow in limey soil, and humus should be supplied liberally to protect them from winter-burn. Azaleas thrive under the same conditions as rhododendrons?that is, in partial shade?and like rhododendrons in general may be used for foundation planting; they do well in thin woodlands.
The Azalea Malus has flowers in pastel shades of orange, yellow and tan.
Boxwood has been a well-loved shrub for generations, especially where winters are not so severe. This evergreen can be pruned to formal rounded shapes. Left to grow, it sometimes attains 20 feet. It is used as a shrub for paths and walks.
Euonymus paten is an evergreen shrub that is hardy. It has glossy green leaves and red berries. Some of the evergreen holly shrubs, such as Japanese holly, or inkberry, are popular. Japanese holly resembles boxwood.
Laurel is another familiar evergreen shrub, valuable for foundation planting. American mountain laurel bears clusters of pink flowers in spring.
Pachysandra (Japanesespurge) is a dense evergreen ground cover for places where grass won't grow. Among the deciduous shrubs, lilac is probably one of the best liked. If you buy lilac be sure that it is grafted either on its own stock or on privet stock. Plant lilac as early as the soil can be worked.
The common lilac is the best known type and has light purple flowers and reaches a height of about 10 feet. There are several hundred varieties, in white, pinkish-lilac, reddish-lilac and bluish-lilac.
Buddleia, the butterfly bush, is 16 feet or more if not killed back by winter, and gets its name from the fact that in the summer, butterflies are always seen around it.
The buddleia takes many forms: as a small - leaved shrub with small purple flowers; as fascinating, a cattleya-pink bush; as flaming violet, a brilliant purple, and as white profusion, a dwarf variety with pure white flowers. Also the Empire blue shrub, the dubonnet, the red glory and white cloud.
Flowering quince (Cydonia) has roselike flowers and a scarlet bloom in spring. Japanese quince grows to 6 feet; has orange-scarlet flowers.
Deutzia is an easily grown shrub, pleasing for the many small flowers in spring. Types include the 2- to 3-foot pink deutzia, with its delicate flowers; the pride of Rochester, with large double white flowers, and Deutzia Lemoinei, which has large, pure white flowers.
Other shrubs are the dwarf buckeye, which blossoms in July with 12-inch spikes; the chokeberry bush, liked for its decorative fruit; broom, which grows in sandy places and blooms in June and July, and witch hazel, a shrub that grows to 20 feet and has spidery yellow flowers.
Forsythia is a welcome shrub because it needs little care; with its drooping sprays of yellow flowers, it is useful for softening the lines of walls.
Hibiscus blooms in August, a rarity, with flowers that are large and purple, or rose-pink or white. It grows to 12 feet if un-pruned. Hydrangea, another shrub with large blossoms blooming in July and August, is a showy bush, with big blue globe-shaped clusters.
Honeysuckle bushes are useful for mass planting. Some varieties are especially enjoyable because they blossom in February and March.
Several spirea varieties are found to be useful as screen plantings, particularly because of their dense growth and abundant flowering. Anthony Waterer spirea is a 2-foot bush with white or rose-pink clusters.
Bridal wreath has profuse white clusters in May. Spirea Thunbergii also has white flowers, and Spirea Vanhouttei, 8 feet high with dense white flowers, is used as a living fence.
Viburnum (the popular snowball) is 10 to 12 feet high at maturity and is used for high foundation, screening and hedges. It has white snowball-shaped flowers and foliage turns crimson in fall.
Weigela is popular, too, in many varieties, including the variegated weigela, a dwarf shrub with rose flowers and variegated silvery leaf. There is also Weigela rosea, with rosy trumpet-shaped flowers, and the new brilliant cardinal shrub.
Both Paul Adkins & Hege Crowton are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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