Mortgage
A mortgage is a loan used to buy a property, secured against that property, so the lender can repossess it if you do not keep up the repayments.
Also known as: mortgages
Most UK mortgages run for 25 to 35 years. You may repay the capital and interest each month (a repayment mortgage), or pay only the interest and repay the capital at the end (interest-only). The interest rate may be fixed, variable or tied to a base rate.
Your home may be repossessed if you do not keep up repayments on your mortgage. Compare the total cost of deals, including fees, not only the interest rate.
Related terms
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9 min readReadThis page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.