A mortgage is a loan, usually from a bank, finance company or building society to help you buy your home. A mortgage is a loan, from a bank or building society that is secured against your house or flat. You have to pay back everything you borrow from your lender within an agreed length of time (the mortgage term). You also have to pay interest on what you have borrowed.
A mortgage is a loan you take out to buy property. Most banks and building societies offer mortgages, as well as specialist mortgage lending companies.
To repay mortgage you either make monthly repayments of interest and capital, or you pay interest only each month then repay loan at end of mortgage term from separate savings or investments.
The purpose of a mortgage is, quite simply, to enable a person to borrow money using property as security. As prices of houses are beyond immediate personal resources of most purchasers, it is necessary to enter into a borrowing agreement with a lender.
A mortgage is therefore a form of a secured loan, whereby lender agrees to lend a person money to enable them to purchase a property. This loan is secured against property by a legal charge and is subject to purchaser and property being able to meet lender's criteria. This loan is then paid back over a period of time along with interest charged by lender.
In most cases lenders will offer three times a single person's salary or two-and-a-half times borrowers' joint salaries. However you should consider whether your budget can afford repayments before borrowing to hilt.
A mortgage is a long term financial commitment with repayments typically spread over a term of up to 25 years. However in practice, people often sell their house before end of mortgage period. The original loan is then repaid from sale of first house and a new loan is taken out to buy new home.