Getting a mortgage

For most buyers in Scotland, taking out a mortgage is the key to making homeownership possible. A mortgage is simply a loan secured against the property you’re buying, which you then repay in monthly instalments over an agreed period of time.

Understanding the basics of how mortgages work, what lenders look for, and how to get started is an essential first step on your journey.

Why mortgages matter

Very few buyers purchase their home outright, so your mortgage will likely be your single largest financial commitment. The type of mortgage you choose, the deposit you save, and the rate you’re offered can all have a big impact on your monthly payments and the total cost of your home over time.

With so many lenders and products to choose from, it’s worth taking the time to understand your options and seek professional advice. A mortgage advisor can help you compare deals, navigate lender requirements, and find the right product for your situation.

How mortgages work

A mortgage is a loan from a bank or building society, secured on the property itself. You’ll agree to repay the loan in monthly instalments, which include both the original amount borrowed (the capital) and the interest charged. The size of your repayments will depend on several factors:

• The amount you borrow
• The size of your deposit
• The interest rate you’re offered
• The term (length) of the mortgage

You’ll also choose between different types of mortgages, such as fixed-rate, variable, or tracker. Each comes with its own advantages and considerations.

What lenders look for

Before approving your application, lenders will carry out an assessment to make sure the loan is affordable and low risk. They’ll typically look at:

• Your income and employment status
• Your monthly outgoings and existing debts
• The size of your deposit
• Your credit history

Being financially prepared by saving a strong deposit, checking your credit score, and getting an Agreement in Principle can all help strengthen your application.

How ESPC Mortgages can help

ESPC Mortgages is here to support you through every stage of your mortgage journey. Whether you’re just starting to explore your options or you’re ready to apply, our expert advisors can guide you through the process, explain your choices, and help you find a deal that works for you.