A mortgage is basically a loan from a bank or building society, which is paid back (with interest) over a number of years. They come in many shapes and sizes, each with their own restrictions and small print. It is a serious long-term commitment, so must be well researched to meet your needs before making a commitment.

Before you can decide on a type of mortgage, there will be several checks made to see if you are eligible for a mortgage or who you are eligible to borrow from. Credit scoring will occur to find out these details. Credit scoring identifies what factors would make a person default on payments and points are taken from you if you apply to the factors. Generally speaking you will lose points if you :

• are self employed
• have changed jobs recently
• have an unstable employment record
• have moved home recently or often
• are not on the electoral register
• have never had a mortgage or other loan
• are single or co-habitating with a partner.

(Buying a House, Adam Walker)

The credit scoring will possibly limit your choice of lender but you will still take the same processes as everyone else in deciding on type of mortgage and how much.