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A mortgage is a loan, usually from a bank, building society or finance company, to help you buy your home. You have to pay back everything you borrow from your lender within an agreed length of time (the mortgage term). You also have to pay interest on what you have borrowed.
Choosing the right mortgage
Your mortgage is probably the biggest loan you will ever take out, so it is important to get a mortgage that suits you. This will depend on:
- your personal circumstances,
- your plans for the future.
Many mortgages have hidden drawbacks. Get independent advice before you choose a mortgage.
If you already have a mortgage that doesn't suit your needs you may be able to:
- change to a different mortgage,
- change to a different lender.
Some deals are a lot better value than others, so it is always worthwhile shopping around.
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What happens if I can't pay my mortgage?
Your lender can evict you and sell your home if you don't pay your monthly mortgage payments. This is called repossession . This doesn't happen automatically.
If you have an endowment mortgage you may be worried that your endowment won't pay off your mortgage even if you make all your monthly payments. Depending on your situation you may be entitled to compensation from the company that sold you the policy.
Get advice if you have problems paying your mortgage. You can get advice from Housing Rights Service. Back to top
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