Purchase Mortgages


Your home may be repossessed if you do not keep up repayments on your mortgage.


A loan to purchase a property for your own residential use. The type of scheme you choose will depend on your circumstances but special schemes are often available for first time buyers and those purchasing their council house. The amount you can borrow will depend on income and existing credit commitments as well as the size of the deposit you can put down. The latter is commonly translated into the loan-to-value ratio (LTV) which is simply the loan expressed as a percentage of the purchase price, i.e. putting down a £10,000 deposit on a £100,000 purchase requires a loan of £90,000 which is 90% of the purchase price so you could not choose a scheme which had a maximum of LTV of 75%. Often as the loan-to-value reduces, the more you will be able to borrow as this represents less risk to the lender.