The main components of the loan

The main components of the loan will be as follows:

1. The parties to the loan - the borrower and the lender.

2. The terms and conditions of the loan:

• The security for the loan, usually the house itself 
• The borrowed amount
• The deposit
• The interest rate
• The fees 
• The timeframe in which the loan has to be repaid
• The amount of the repayment (whether it is interest only or includes a repayment of the principal sum borrowed) and the frequency
• The penalties if a loan is repaid early or not paid on time.