Mortgages Information

Mortgages are the way that we buy our homes. A mortgage is an amount of money that is borrowed from a lending institution such as a bank or building society to purchase the property you want to call home. This money is borrowed for a period of time- typically 25 years, though this period could be shorter or longer depending on your requirements.

There are generally two mortgage routes available- an interest only mortgage or a repayment mortgage.

A repayment mortgage is a mortgage where each repayment you make each month partly reduces the interest and partly reduces the capital sum you borrowed. This means that at the end of your mortgage you own your home as there is nothing left owing. A repayment mortgage is by far the most popular mortgage route in the UK today.

An interest only mortgage means that you are only paying the interest on the mortgage to the mortgage company throughout the term of the mortgage. You will still owe the original amount you borrowed at the end of the mortgage term so you will need to find a way of repaying the outstanding amount, for example, through a savings arrangement.

If you would like to know more or look at sourcing a mortgage, please complete an enquiry form.

Your home may be repossessed if you do not keep up repayments on your mortgage.