How mortgages work
A mortgage is a loan that is used to buy a property.
Mortgages are usually supplied by banks. The borrower pays it back on a monthly basis, with interest added, for a number of years. The mortgage is usually secured against the value of the home, which means the lender can take the property back if the repayments stop.
For this reason, it’s important that you’re comfortable with the size of the monthly repayments and the interest added. Remember to take into account other bills you will have to pay as well, like council tax and insurance.
Your mortgage adviser, the person who helps you find and choose a mortgage, can explain the terms of any particular mortgage to you and ensure you’re happy with the details.