Mortgages
Make sense of
your mortgage.
Understand the words, prepare your questions and get advice for your circumstances.
The basics before the comparison
A mortgage is a loan secured against your home. The amount you can borrow and the deal available to you depend on the lender’s assessment of your circumstances.
Deposit and loan-to-value (LTV)
LTV compares the mortgage with the property’s value. For example, a £180,000 mortgage on a £200,000 home is 90% LTV. This is an illustration, not a borrowing recommendation.
Fixed and variable rates
A fixed rate stays the same for the agreed period. A variable rate can change under the product’s terms. Ask how payments could change and what happens when an initial deal ends.
Agreement in principle
A lender’s initial indication of what it might lend. It is subject to further checks and is not a guaranteed mortgage offer. Ask whether the application involves a soft or hard credit search.
Fees and early repayment charges
Look at the total cost over the period you expect to keep the deal, including fees. Check the rules for overpayments, moving home and repaying early.
Prepare for the conversation
- Gather evidence of income, regular spending and deposit funds.
- Ask what documents the lender needs for your employment situation.
- Ask an adviser which lenders they consider and what fees they charge.
- Get a clear explanation of the monthly payment and the risks.
Check the details
Use the linked guidance for the latest rules and advice for your circumstances.