First Time Buyer’s Guide
What is a mortgage?
If you’re looking to buy a home, you’ll probably need to apply for a mortgage.
It’s a loan which is secured against the value of the property.
The mortgage will either be:
- a repayment loan, where you pay back a proportion of the loan plus interest each month; or
- an interest-only loan, where you pay the interest on the loan each month but not the loan.
With interest-only loans, you need to have plans in place showing how you’ll pay back the amount you borrowed when the mortgage ends.
