Mortgage

Mortgage is a loan secured against land or property. You borrow to buy or refinance a property, and the lender takes a legal charge over it. You repay in regular instalments; if you do not pay, the lender can sell the property to recover the debt.

For businesses this is often a commercial mortgage. Common choices are repayment vs interest‑only, and fixed vs variable interest. The property is an asset in your accounts, and the mortgage is a liability you pay down over time.

Before you agree a mortgage, check:

• Which property is used as security and how the legal charge is set up.
• The term and repayment method, and how instalments are calculated.
• The interest type (fixed, variable or mixed) and when it can change.
• Fees, insurance needs and other conditions you must meet.
• Any personal guarantees or extra security the lender requires.
• Rules for early repayment or refinancing and possible costs.