Mortgage Information > Basics

A 'mortgage' is a loan secured against your home. 'Secured' means that if you do not keep up the payments, the lender can sell your home to get its money back.

You can typically borrow up to three and-a-half times the main earner's income before tax, plus one times any second earner's income, or alternatively two-and-a-half times their joint incomes (if this is larger).

Your lender may only count half of income such as overtime, commission or bonuses unless this is guaranteed. Lenders will reduce the amount they will lend if you have substantial outgoings such as other loan payments.

The 'standard' term is 25 years, but you can choose a different term if it suits you and the lender agrees that you can afford it.

With a shorter term, you'll have higher monthly payments but pay less in total

It may be tempting to borrow as much as possible when the initial cost is manageable, but you could get into difficulties and lose your home if you can't keep up your repayments.