Borrowing to buy your home

When you buy your home, you’ll probably need to take out a loan to pay for it.

Mortgage

A mortgage is a loan that’s secured against your home. This means that if you can’t keep up with the repayments, your mortgage provider can sell your house to recover the money you owe. A mortgage is usually offered at a much lower interest rate than you’d find for any other type of loan.

Remortgage

If you change your mortgage to a new lender by remortgaging, you may find you benefit from a better mortgage rate than the one you’re currently paying. Some lenders also offer to pay the legal costs and valuation fees associated with remortgaging.

The process for remortgaging your home can take around eight to twelve weeks, as the new lender will need to make similar checks to those made when you first bought your home.

You may have to pay early repayment charges to your existing lender if you remortgage. These are all areas your adviser will be able to explain in more detail and help you with.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.