Without mortgages, acquiring a home would be an impossibility for many that simply don’t have the kind of capital needed to purchase a home outright. While we have all heard of a mortgage, and many of us have one, what are they and where did they originate from. We take a look at some interesting mortgage facts, starting with where the name comes from:
The Meaning of the Word Mortgage
Did you know… the word ‘mortgage’ originated from the French for ‘death contract’. Morbid we know but it was in early Anglo-Norman times when property was pledged as security for a loan. It meant that the borrower was bound by debt until they had either repaid the debt or they had died. Many people managed to pay off their debts before this though.
While we are on the subject… do you have adequate mortgage protection in place? What about wills, estate planning and probate?
Celebrating Paying off the Mortgage
There is a Scottish tradition that involves people painting their front door when they have paid off their mortgage. We don’t know how much this tradition is still upheld but we like the idea of it. In America, the custom is to burn the now redundant mortgage agreement at a party with loved ones. What a great way to celebrate paying off such a big commitment. How would you celebrate paying off your mortgage?
The Story Behind the Tradition of Housewarming
The tradition behind housewarming is quite literal. When someone bought a house, the neighbours would join them for the housewarming. Back then, people would bring wood and light fires in the fireplace though rather than turning up with Prosecco and nibbles. The reason for this was to ward off any spirits that may have been hanging around in the building when it was unoccupied. Nowadays, it’s a great excuse for a party with family and friends.
Mortgage Popularity
The more modern mortgage became popular in England before moving through the rest of the Western world. These mortgages were very different to how they are today however and it wasn’t until the first and second world wars that providing housing for returning soldiers made them even more popular. Then came the rise of the building society but now there are many mortgage providers out there, all competing for their share of this huge industry. In fact, choose a mortgage can now be quite a task without professional help.
No Credit History isn’t a Good Thing
Among our mortgage facts is that while having a poor credit rating can affect the type of mortgage that you are eligible for, having no credit rating can stop you getting a mortgage. Even if you are very wealthy, you could struggle to borrow. When a mortgage lender makes a decision on whether or not to lend you the money, one of the key factors that influences this is your credit history. If you don’t have one, they can’t tell if you are a risk or not.
Mortgages for the Self-Employed
Among those that struggle the most to get a mortgage are the self-employed. It can be very difficult to declare and prove earnings. However, don’t let this discourage you as, with the right mortgage advisor, you can find the best deal that will take into account your circumstances.
Enjoyed Our Mortgage Facts? Get in Touch to Discover How We Can Help
If you need help obtaining a mortgage to suit your circumstances, we would be happy to help. Please call Buzz Financial on 01934 756717 for friendly, professional help and advice.