Very few people can pay cash for their home. Most people need to take out a mortgage loan.
A mortgage is different from a bank overdraft, credit card debt or other type of loan because: it is larger; and it is ‘secured’ on the property.
When a loan is ‘secured’, your home acts as security for the loan. If you do not keep up the loan payments, the mortgage lender could repossess your home and sell it to try to recover the money you owe. Although this step is only taken as a last resort, it is important that you choose your mortgage carefully and think about how you can protect yourself against falling behind with the payments.
Different mortgages suit different people – so take time to think about what kind of mortgage would suit you best.
Find out more through the Scottish Government's (formally Communities Scotland) guidance on buying a house, including information on finding a mortgage.