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 Reform (Scotland) Act 1970.

In this section, we use the terms ‘secured loan’ and ‘mortgage’ interchangeably.