Most smart investors put enough money in a savings product to cover an emergency, like sudden unemployment. Some make sure they have up to six months of their income in savings so that they know it will absolutely be there for them when they need it.

But how "safe" is a savings account if you leave all your money there for a long time, and interest it earns doesn't keep up with inflation? Let's say you save a pound when it can buy a loaf of bread. But years later when you withdraw that pound plus interest you earned, it might only be able to buy half a loaf. That is why many people put some of their money in savings, but look to investing so they can earn more over long periods of time, say three years or longer.

You may prefer to invest your money in order to achieve a higher return compared to savings but you should be aware that when you "invest," you have a greater chance of losing your money than when you "save." You could lose your "principal," which is amount you've invested. That's true even if you purchase your investments through a bank. But when you invest, you also have opportunity to earn more money than when you save.

All investments involve taking on risk. It's important that you go into any investment in stocks, bonds or mutual funds with a full understanding that you could lose some or all of your money in any one investment.

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The first thing to understand will be type of mortgage to be taken. There are a number of mortgages designed for different purposes. First time buyer mortgage is for people who are buying home for first time. Those who aim to repay mortgage through house rent can take buy to let mortgage. Those aiming to provide for their old age take a pension mortgage. There are many more mortgages to choose from. Customers must be aware of uses that each mortgage can be put to, and their inherent advantages and disadvantages.

Choosing mode of repayment will be next to decide. One can pay outright principal and interest through a repayment mortgage, or can choose to pay only interest through an interest only mortgage. Few more terminologies like fixed rate, variable rate and capped rate creep in when decision regarding way interest is to be charged needs to be decided.

The correct Mortgages advice is one that is provided after studying requirements of customer and risk that they would desire to entail. A mortgage taken without keeping financial condition of borrower will make repayment difficult. The mortgagee or mortgage provider will have to face some difficulty in getting mortgage amount with interest. However, he gets balance on mortgage after liquidation of assets. The ultimate loser is borrower. Hence, onus of understanding mortgage process rests on borrower.

Andrew baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice

to the residents of the UK.He works for the personal loan web site http://www.ukfinanceworld.co.uk for any type of uk secured