So, you’re ready to become a homeowner! But first, let’s talk about the essential piece of financing it: a mortgage.
A mortgage is essentially a loan designed to help you buy a property. Because few people have the full cost of a home in savings, a mortgage allows you to borrow from a lender. But before you apply, you’ll need to save up a deposit.
The deposit
A deposit is a percentage of the home’s price that shows lenders you’re a responsible buyer. Typically, you’ll need at least 5%, though a larger deposit often gets you better mortgage terms.
Mortgage interest rates
Lenders charge interest on the amount borrowed, adding to your monthly costs. You’ll choose between fixed and variable rates:
- Fixed-Rate Mortgage: The interest rate remains steady for a set period, offering predictable payments.
- Variable-Rate Mortgage: The interest fluctuates with the market, meaning your payments can go up or down.
Mortgage terms
The mortgage term is how long you have to repay the loan. Most mortgages last around 25 years, though shorter terms with larger payments are an option if budget allows.
Why work with a mortgage adviser?
Mortgage advisers provide expertise on the right mortgage options for your needs, guiding you through each step, from choosing terms to securing the best deal. They’re invaluable whether you’re a first-time buyer or experienced homeowner.
Ready to take the next step? Book your appointment online and we’ll help you navigate the process.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
The fee is up to 1% but a typical fee is £598.
