Your Simple Guide to UK Mortgages

Here we give you the very basic, noddy-proof info on mortgages. What exactly is a mortgage… how do they work… what does it mean to you… and so on.

Knowing the basics of the biggest product you’re ever likely to buy should help you feel more comfortable during the process.


What Exactly is a Mortgage?

A mortgage is the name for the loan you borrow to help pay for a property.

If you don’t repay the loan as agreed, the mortgage lender can take possession of the property and sell it to recoup the money you owe.


The loan is made up of two elements:

• The capital – in other words, the amount of money you borrowed to buy your property and

• The interest – the amount the mortgage lender charges for lending you the money (which is why they’re in business).


You’ll see hundreds of different names for mortgages. Ignore them. They all boil down to the two main types:

• Repayment mortgages and

• Interest-only mortgages.

Lenders often make things seem more complicated than they have to be. But don’t worry – with our help, it can all be kept fairly simple.


The two most significant things about any mortgage are:

• The interest rate and

• The mortgage fees

Find out Why the interest rate and fees matter so much


Checkout the Top Ten Mortgage Tips


Read On / Mortgage Basics