What is a Mortgage?

A mortgage is a loan that helps you buy a home or borrow against the value of one you already own. It’s basically an agreement between you and a lender, giving them the right to take your property if you don’t repay the loan along with any interest.

Here are some key things to know about mortgages: 

• How It Works
  You’ll typically make monthly payments over a set period, called the mortgage term. This term can be tailored to your needs and usually ranges from 1 to 40 years, depending on the lender.

• Security
  The money you borrow is secured against the property you’re purchasing, so you may lose your home if you can’t make your payments.

• Interest
  The interest rate plays a crucial role in how much you’ll end up repaying overall and what your monthly payments will look like.

• Credit score
  Getting a mortgage can temporarily lower your credit score but paying it off responsibly can help improve it over time. 

As part of the application process, we’ll let you know when it’s time to do a Decision in Principle (DIP). This is a written statement from a lender that shows how much they might be willing to lend you for a home purchase or remortgage. Here’s what to know about it:

• It’s also called an agreement in principle (AIP) or mortgage promise.
• A DIP is not a formal offer, so the amount you can borrow might change after a more detailed assessment.
• DIPs usually last for 30 to 90 days.
• Estate agents often want to see a DIP before showing you properties.
• You can apply for a DIP with us whenever you’re ready!

We’re here to guide you through the mortgage journey and make it as smooth as possible!