How do mortgages work?
A mortgage is a loan taken out to buy a residential property or land. A bank or building society provides a loan against the value of your home until it’s paid off. Most buyers pay monthly repayments to the lender for around 25 - 35 years to pay off their mortgage. If you can’t keep up your repayments, the lender can repossess (take back) the property.
When you buy a home, you’ll typically put down your deposit. This is a percentage of the property’s total purchase price (usually between 10% and 20%).
Once you've paid your deposit, the remaining cost of your home can be paid for with a mortgage. You legally own your own home and make monthly repayments on the mortgage until eventually, you have paid off your mortgage and own the home 100% outright.