A mortgage, which is a secured loan, works by borrowing money using property as a security. The reason to borrow the money is to purchase the property. It is another word for a property loan, which allows you to borrow an amount of money in order to buy a home or property, secured on the value of that property that you pay back over a certain period of time.

Secured means that if you should default the payments or cannot keep up with the schedule that was originally agreed on, the lender can sell your property in order to get their money back.

There are four main parts of a mortgage. The capital is the amount of money that you borrow in order to buy the home. The interest is the amount you are charged for borrowing the money, which is a percentage of the capital. Term is the certain, fixed amount of time that the money is borrowed over. Repayments are the amounts of money that you pay during the term of the mortgage.

The amount of time mortgages are usually repaid over is 25 years. However, this will depend on your financial situation and earnings, which can cause it to be a longer or a shorter time. The amount of money which is borrowed is called the capital, which needs to be paid back along with the interest charged to you by your lender.

Your two options are to repay the capital and interest together, which is a repayment,  or to repay the interest only and pay the capital at the end of the term, which an interest only mortgage.

There are two factors which lenders will consider when deciding how much money they will let you borrow. One thing is how much you earn, as you often will only usually be allowed three times your salary. If you are purchasing jointly, then the income will be worked out differently. The lenders will also consider the amount you are borrowing and the total amount of the property. Although most will allow you the full value, some will only lend you a particular percentage.