A mortgage loan, or simply mortgage, is used either by a purchaser of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is secured on the borrowers property through a process known as mortgage origination. This means that a legal mechanism is put into place that allows the lender to take possession and sell the secured property (generally known as a repossession in the U.K.) to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by the terms.
In the U.K. we have historically been obsessed by property ownership, and for many the aspiration of owning your own home remains extremely powerful. Property prices have risen very significantly over the last three decades, which makes owning a home now extremely difficult for first time buyers without financial assistance, often from parents or grandparents.
The mortgage market has developed into a highly competitive market now and with long term interest rates close to record lows, mortgage finance can still be obtained on extremely attractive terms.
This is a complex area and we are able to assist with guidance and strategy. Please contact us if you wish to discuss a potential new mortgage or indeed re-mortgage your existing property.