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What is a Mortgage?

A mortgage is a simple concept, containing a few complexities designed to protect both the lender and the borrower in the arrangement. In a nutshell, a mortgage is where a lender, such as a bank or building society, gives a borrower a loan to enable them to purchase a property. They have a legal interest in the borrower’s property until the loan is repaid, and this is usually referred to as a Secured Loan.

The money you borrow is paid back with interest, usually over several years (up to 25). This period where the money is being repaid is known as the 'mortgage term'. Once the loan is repaid, the lender has no further legal interest in your property.

A remortgage loan is secured against your home just like a mortgage loan. This means that the bank or building society can sell your home if you, for whatever reason, can't afford to continue paying the mortgage payments.

If you are looking at taking out a mortgage, and would like to plan your borrowing, please use our mortgage calculator. Alternatively if you have any questions please contact one of our advisors who will be happy to help. Our advisors have access to the whole of the mortgage market, meaning they are able to find the best solution for you, and not just one from a limited number of providers.

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