A mortgage is the cheapest type of credit that you are likely to be offered. The interest is usually only 1 or 2% above the base rate, and in some introductory offers it might actually be below it for the first year or two.

The reason the interest rate is lower than for other forms of credit is that the loan is secured on property on which the loan is given. This means that if you get behind with payments, the mortgage lender can throw you out of the house and sell it to raise the money that you owe them. They may give you back anything left over from the sale of the house after they have taken the money you owe, plus the interest, plus other charges. But they usually make sure that their charges and expenses are so high that they can keep the whole lot.
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