Now listen up, here’s the serious bit…

What is a mortgage?

A mortgage is a type of loan taken out to cover the cost of a property or land.

Types of mortgages…

The main three are:

  • Interest only – Paying only the interest on the loan and nothing off the capital (the amount you borrowed)
  • Repayment – Paying the interest and part of the capital off every month
  • Off-set- Savings and a mortgage with the same lender and your cash savings are used to reduce – or ‘offset’ – the amount of mortgage interest you’re charged. This type of mortgage isn’t suitable for young people, it’s for established professionals

To figure out how much of mortgage you can get try Money Saving Expert's off-set mortgage calculator

Further reading on Money Advice Service