What is a mortgage?

A mortgage is a type of loan that you take out to buy a property. As with any loan, you borrow money from a bank, building society or a specialist lender and repay it with interest over a period of time.

With mortgages, however, it is important to remember that the loan is secured against the property, meaning you could risk losing your home if you fail to keep up repayments on your mortgage.

If you're looking to take out a mortgage for the first time you need to make sure that you:

  • find the right mortgage to suit your requirements
  • work out a budget so that you only borrow what you can comfortably afford
  • plan for any future changes – e.g. drop in income, loss of job, hike in interest rates, etc.