What is a Mortgage?

If you don’t have enough money to buy a house outright in cash - which is the case for most people - you’ll need to take out a mortgage.

• A mortgage is a loan that enables you to buy your property.
• The money you borrow will need to be paid back over a set period of time, usually at least 25 years, and is repaid via monthly payments.
• The lender will take your income and outgoings into consideration in order to determine how much money you’re able to borrow.
• You’ll need to put down a deposit, which is usually a minimum of 5% of the cost of the property.
• Your mortgage is taken out against the property, therefore your home may be repossessed if you don’t meet your mortgage repayments.