UK Property Mortgages

A mortgage is a legally binding agreement whereby a bank, building society or lending institution allows you to borrow money to purchase a property; typically a residential, holiday home or investment property.

When you have decided to purchase a property and require mortgage funding our team of specialists will provide advice to you and source the most appropriate mortgage in the marketplace. Your adviser will present your case to a chosen lender who will evaluate your financial background, creditworthiness, and the value/condition of the chosen property, to determine the terms and conditions of the mortgage.

Once approved, you will receive a commitment stating a specific amount of money, usually a percentage of the property's value will be provided by the lender. This amount is referred to as the principal. The borrower's legal representative (solicitor) uses the principal funds and your personal contribution to pay the seller and complete the purchase of the property. In return, the borrower agrees to repay the lender over a specified period of time, typically through monthly instalments, that include both principal and interest.

The mortgage is secured by the property itself, meaning that if the borrower fails to make the required payments, the lender has the right to foreclose/repossess the property and sell it to recover the outstanding debt. This security for the lender allows them to offer lower interest rates compared to unsecured loans.

The terms and conditions of a mortgage can vary depending on factors such as the borrower's credit history, the loan amount, the interest rate, the loan term, and the type of mortgage chosen. Common types of mortgages include fixed-rate mortgages, where the interest rate remains the same throughout part or all of the loan term, and adjustable-rate mortgages, where the interest rate can change periodically.