{"id":6515,"date":"2025-06-20T10:20:35","date_gmt":"2025-06-20T09:20:35","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=6515"},"modified":"2025-08-07T09:36:03","modified_gmt":"2025-08-07T08:36:03","slug":"an-introduction-to-mortgages","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2025\/06\/20\/an-introduction-to-mortgages\/","title":{"rendered":"An introduction to mortgages"},"content":{"rendered":"<div class=\"hd-block hd-block-table\">\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Buying a home is much easier if you\u2019re well-informed and get some good advice<\/td><td>Getting a mortgage is one of the biggest financial decisions you\u2019ll make<\/td><td>There are various types of mortgages including fixed rate, variable rate, standard rate, tracker and offset mortgages<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\">Contents<\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-list\">\n<ul><div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#what\u2019s-a-mortgage-and-how-does-it-work\">What\u2019s a mortgage and how does it work?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#what-types-of-mortgage-are-available\">What types of mortgage are available?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#what-does-a-solicitor-or-conveyancer-do\">What does a solicitor or conveyancer do?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#there\u2019s-a-lot-to-take-in-how-can-I-get-help\">How can I get help?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#top-tips\">Top Tips<\/a><\/li>\n<\/div><\/ul>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>There are times in our lives when we can all use some help and guidance. Buying a home is one of those major steps that\u2019s much easier to take if you\u2019re well-informed and get some good advice. Here, we\u2019ll provide answers to a few of the questions we\u2019re regularly asked by clients.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"what\u2019s-a-mortgage-and-how-does-it-work\">What\u2019s a mortgage and how does it work?<\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>A mortgage is a loan that you take out to buy a property. The average repayment period for new mortgages is around 30 years, with many people opting for longer loan terms of up to 40 years. The money you borrow is called the capital and the lender charges you interest on it until it is repaid. The loan is \u2018secured\u2019 against the value of your home until it\u2019s paid off. If you can\u2019t keep up your repayments the lender can repossess your home and sell it so they get their money back.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>When it comes to monthly repayments, these can be interest and capital, referred to as a repayment mortgage, or just interest, referred to as an interest-only mortgage. With a repayment mortgage you make one payment each month to your lender, part of which goes towards paying off the interest and part goes towards repaying the capital borrowed. At the end of the term of the mortgage, as long as you have kept up repayments, your mortgage is paid off.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>With an interest-only mortgage you only pay interest each month, not the capital borrowed. This means at the end of the mortgage term you still owe the full amount that you originally borrowed and will need to make other arrangements for paying back the capital.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"what-types-of-mortgage-are-available\">What types of mortgage are available?<\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Mortgages come in various types and we can help you find the one that would work best in your particular circumstances. We can explain the pros and cons of fixed rate, variable rate, standard rate, discount rate, capped rate, tracker, offset and cashback mortgages. If you\u2019re moving into an energy-efficient home or making your property greener, you might be eligible for a green mortgage. We\u2019ll also talk you through the finer detail of how repayment mortgages and interest-only mortgages work. We keep up-to-date with the deals the market has to offer, including those offering free surveys or reduced legal fees, so we\u2019ll be able to explain how these might work for you.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\">How much can I borrow?<\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Lenders calculate how much you can borrow based on both your income and your outgoings. They also take into account how much deposit you have available. That\u2019s why it\u2019s important to be able to show a potential lender that you manage your money well, don\u2019t have huge debts, keep your spending under review and maintain your bank account in good order.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The mortgage market has been shaken up in recent years by rising interest rates. In difficult economic conditions, when affordability might be stretched, the amount that lenders are willing to lend may be affected.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\">How much deposit do I need?<\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Basically, the bigger the deposit you put down, the cheaper the mortgage. While some lenders are prepared to lend up to 95% of the property price, with the borrower putting in the remaining 5% as a deposit, more favourable deals and rates are available to those who can put down, say, 20% or even more.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>It\u2019s important to remember there are also fees and charges that you will be required to pay as part of the process of putting your mortgage in place, so you\u2019ll need to have savings in place to pay for these too.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\">Do I need a survey?<\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Yes. Having a survey carried out on a property before you commit to buying it can save you thousands of pounds in repair bills and a lot of stress in the future. If the survey shows that repairs need to be carried out, you may be able to use this information to negotiate with the vendor. There are various levels of survey available, and your adviser will be able to offer help and advice on choosing the type that meets your needs. Your lender will also require a mortgage valuation to see if you are paying a fair price for the property. It tells them if the property is suitable for them to lend on, and how much they can safely lend.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"what-does-a-solicitor-or-conveyancer-do\">What does a solicitor or conveyancer do?<\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>They undertake the conveyancing, the legal transfer of ownership from the seller to the buyer. They also review the terms of the contract, carry out searches to ensure there are no planning issues, or problems like flooding, obtaining details of fixtures and fittings the seller is leaving behind, and obtain important documents such as Energy Performance Certificates. They arrange the exchange of contracts that commits you to the purchase, arrange your completion date, pay over the stamp duty and register your title with the Land Registry.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"there\u2019s-a-lot-to-take-in-how-can-I-get-help\">There\u2019s a lot to take in \u2013 how can I get help?<\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Getting a mortgage can seem like entering a financial maze. If you\u2019re not familiar with the way the mortgage market operates, knowing where to start can be bewildering. We can help you work out how much you can afford to borrow, and we\u2019ll recommend the most appropriate type of mortgage for you, identify the right lender and work with you to get a suitable mortgage. We know the criteria that the major high street and niche lenders use and we\u2019ll help you present your application in the best way to the right lender.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"top-tips\">Top Tips<\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\">Speak to an adviser as early as possible<\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Before you start looking for a property to buy, it\u2019s really worth speaking to us. We can help you work out how much you\u2019re likely to be able to borrow, and give you useful hints and tips that will help you prepare for the mortgage application process.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\">Your finances need to be in good order \u2013 do your sums ahead of time<\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Mortgage lenders are required by the Financial Conduct Authority to adopt an affordability-based approach to lending. This means that banks and building societies now scrutinise borrowers\u2019 incomes, outgoings and credit history closely and can ask searching questions about your finances. They apply strict affordability criteria as they need to ensure that borrowers can comfortably afford their repayments now, and in the foreseeable future. It\u2019s worth looking closely at what you spend and making sure your finances are in good order before making a mortgage application.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\">Your credit score matters<\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>When a potential lender reviews your application, they\u2019ll take a look at your credit report. Generally speaking, the higher your credit score the better your chances of getting a mortgage at a lower interest rate. Simple steps like increasing your monthly credit card repayments, registering on the electoral roll and not taking on additional borrowing before you make your application can help improve your chances of having a good credit score.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\">The bigger the deposit the better<\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Saving up for a deposit can be hard going, and the best advice is to start saving as much as you can as early as you can. The more you can put down as a deposit, the better the deal you can expect to be offered. Increasingly, more and more first-time buyers are offered financial help from their parents and grandparents.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\">Make sure you\u2019re buying the right property<\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>You might fancy buying an unusual property, but it\u2019s wise to remember that lenders can be quite conservative. Some lenders are unlikely to lend on flats above shops or businesses, and others won\u2019t consider houseboats or homes that aren\u2019t made out of bricks and mortar. If you\u2019re buying an older property, your lender will need to be sure there aren\u2019t hidden problems that could be costly to put right in the future. That\u2019s why you need to have a survey done.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\">We&#8217;re here to help<\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Getting a mortgage is one of the biggest financial decisions you\u2019ll make, so it\u2019s important to get it right. If you have any queries, or would like to discuss any aspect of mortgages, whether you\u2019re moving up the ladder, looking to downsize, purchasing another property or remortgaging, please do get in touch.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-spacer\">\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Buying a home is much easier if you\u2019re well-informed and get some good advice Getting a mortgage is one of the biggest financial decisions you\u2019ll make There are various types of mortgages including fixed rate, variable rate, standard rate, tracker and offset mortgages Contents There are times in our lives when we can all use [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32],"tags":[86],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/6515"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=6515"}],"version-history":[{"count":2,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/6515\/revisions"}],"predecessor-version":[{"id":6886,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/6515\/revisions\/6886"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=6515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=6515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=6515"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=6515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}