What is a mortgage?

In a nutshell

A mortgage is a loan used to purchase a property where a borrower agrees to pay the lender back over time. The loan is secured against the property, which means the lender can take the property if the borrower fails to keep up regular payments.

How do you get a mortgage?

In the UK, you must approach lenders to apply for a loan. Lenders will review your details before determining whether they will give you a loan and if so, how much. Typical information they look at includes:

• Your deposit amount.
• Your income & expenses, and employment history.
• Your credit history.

If a lender is happy with an application, they’ll offer a loan.