Back to previous
Newer version available

There is a newer version of this publication available:
Debt Advice Handbook Scotland 1st ed - with new material

What is a mortgage
Mortgages (or secured loans) are loans taken out through a bank or building society, usually to buy a property. They are paid back over a long period, typically up to 25 years and normally in monthly instalments. When the agreement is signed, a client gives the property as security. If a client does not make the repayments, the creditor can take back the property. To do this, they must take the client to court.
In Scotland, the process of buying property is through a secured loan and is governed by the Conveyancing and Feudal Reforms (Scotland) Act 1970.
In this section, we use the terms ‘secured loan’ and ‘mortgage’ interchangeably.