FAQs

There are various types of mortgages available, including fixed-rate mortgages, variable-rate mortgages, tracker mortgages, offset mortgages, and more. Each type has its own advantages and disadvantages, catering to different financial situations and preferences

The amount of deposit required varies depending on the lender and the type of mortgage. Typically, lenders require a deposit ranging from 5% to 20% of the property's purchase price. However, larger deposits can often secure better mortgage deals with lower interest rates.

A fixed-rate mortgage maintains the same interest rate for a set period, usually two to five years. This provides certainty in monthly payments, making budgeting easier. In contrast, a variable-rate mortgage has an interest rate that can fluctuate based on market conditions, potentially resulting in changes to monthly payments.

Lenders assess mortgage affordability based on various factors, including your income, regular expenses, credit history, existing debts, and the size of your deposit. They use this information to determine how much they are willing to lend you.

There are several fees associated with getting a mortgage, including arrangement fees, valuation fees, legal fees, and potentially early repayment fees or exit fees. It's important to consider these costs when budgeting for a mortgage.

A mortgage agreement in principle, also known as a mortgage in principle or decision in principle, is a preliminary indication from a lender of how much they would be willing to lend you based on an initial assessment of your financial situation. It can be useful when house hunting to show sellers that you're a serious buyer.

If you're struggling to keep up with your mortgage payments, it's essential to contact your lender as soon as possible. They may be able to offer solutions such as payment holidays, restructuring your mortgage, or other forms of assistance. Ignoring the issue can lead to more severe consequences, such as repossession of your home.

Many mortgages allow you to make overpayments, which can help you pay off your mortgage faster and potentially save money on interest. However, there may be limits on the amount you can overpay each year without incurring additional charges, so it's essential to check with your lender.

Remortgaging involves switching your existing mortgage to a new deal, either with your current lender or a different one. People remortgage for various reasons, such as to secure a better interest rate, release equity from their property, or consolidate debts. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage