Sorting out a mortgage is one of the biggest parts of buying a home. Here are the questions worth getting clear on before you apply.
How much can I borrow?
Most lenders will offer around four to four-and-a-half times your annual income, though this varies by lender and your wider circumstances (other debts, outgoings and credit history all matter).
How big a deposit do I need?
A larger deposit unlocks better interest rates. 10% is typical; 5% deals exist but usually cost more over the term. The more you can put down, the lower your monthly payments and total interest.
Fixed or variable rate?
A fixed rate gives you certainty — your payments stay the same for the fixed period. A variable or tracker rate can go up or down. Which suits you depends on your appetite for risk and where rates are heading.
What's the real cost?
Look beyond the headline rate. Arrangement and product fees, valuation costs and early-repayment charges all add up — compare deals on the overall cost (the APRC), not just the rate.
Should I use a mortgage adviser?
A whole-of-market mortgage adviser can compare deals across lenders and handle the application paperwork for you. For free, impartial guidance first, the government-backed MoneyHelper service is a good place to start.
Your home may be repossessed if you do not keep up repayments on your mortgage. Information here is general and not financial advice — always seek regulated advice for your circumstances.