Mortgages are a loan that you use in order to buy a flat or house. This page will tell you everything you need to know about mortgages and why you might need one.
What is a mortgage?
A mortgage is a loan from a bank, building society or credit union that you use to buy a flat or house. Before the money is used to buy a house, you need to put down a deposit. The deposit is around 10% of the total mortgage. For example, if you had a mortgage of £400,000, you may need to pay a £40,000 deposit.
What do I need to get a mortgage?
To apply for a mortgage, you will need the following:
- a good credit score (which you can increase by showing you can pay back loans on-time)
- a deposit for the property you want to buy (usually between 5% and 10% of the property’s value)
- evidence of how much you earn each month