A mortgage is a loan used to finance the purchase of a property. The property serves as collateral for the loan, and the borrower repays the loan amount plus interest over an agreed-upon term.
A loan to purchase a home for personal use, repaid over time with interest.
A person who has never owned a property before, making them eligible for certain mortgage deals and government schemes.
A remortgage involves switching your existing mortgage to a new deal or lender, usually for better rates or to release equity.
A mortgage where a third party, usually a family member, guarantees payments if the borrower defaults.
A secured loan is backed by property as collateral for various purposes, while a mortgage specifically funds property purchase.
An offset mortgage links your savings and current accounts to your mortgage. The balance in these accounts is offset against your mortgage debt, reducing the amount of interest you pay. However, the interest rate on the mortgage may be slightly higher.
In many cases, you can switch between mortgage types, although it may be subject to your lender’s terms and conditions. Switching often incurs fees, so it’s important to consider the potential costs and benefits before making a decision.
Allows borrowers to adjust repayments, make overpayments, take payment holidays, and access extra funds, providing greater financial control.