A mortgage is basically a loan - a loan that is secured on the value of a property which you pay back over a given period of time.

The term 'secured' means that if you cannot fulfil the payment programme as agreed with the lender, they have the right to sell your property in order to recover their money.

Hot Topics

What is the difference between a Life Insurance Broker and a Life Insurance Company?
A Life Insurance Company is the organisation that actually writes your policy and covers the policy risk. It is also their name that appears on your policy documents and it is their duty to make any payouts if you make a claim.
Is the price I get quoted the price I get charged?
We are afraid the answer is “it depends” upon many factors.
What is the difference between a Guaranteed and Reviewable life insurance policy?
With a “Guaranteed” policy the Life Company guarantees that it will never increase the premium.....
Will I need a medical?
This depends upon your medical history and the exact plan you have chosen.
Does a UK Life Insurance policy work abroad?
Life Insurance contracts offered by UK Life Companies are legally constructed to apply to people living in the UK and can be sold only to a UK resident at the time the policy is sold.

The usual term of a mortgage is 25 years, but depending on your circumstances and earnings it can be arranged over longer or shorter periods. The initial amount you borrow is called the 'capital', and added onto this capital will be the interest charged to you by the lender. You have two options - to pay off the capital and the interest as one sum - this is a 'repayment' mortgage, or pay back the interest only, and set up another investment to pay back the capital at the end of the term, this is known as 'interest only'. You have many more options when it comes to choosing how you want your interest to be charged.