Mortgages explained

Mortgages explained

Everything you need to know about mortgages

What is a mortgage?

The majority of buyers require a loan to purchase a property. This loan is known as a mortgage.

Mortgages can be obtained from banks, building societies and mortgage lenders. They will assess your circumstances and lend you an amount that you can realistically afford to repay. They will charge interest on the loan and you will have an agreed time span (mortgage term) to repay the amount borrowed. It is important to understand that the interest rate can and will change over the duration of the loan.

Deposits

Deposits

Usually, lenders want to see that you can provide a deposit. However, that deposit may be as little as 5% of the property’s market value. If you can raise a 5% deposit, you will be looking at a mortgage with a 95% loan to value (LTV). Loan to value is the loan amount expressed as a percentage of the property value. For example, with 95% LTV on a £100,000 house, you would need a 5% deposit, i.e. £5,000, and your loan amount would be £95,000.

There are several key things to consider when choosing your mortgage:

  • How much can you afford to borrow and repay on a monthly basis?
  • How long should your mortgage term be?
  • Which repayment option is best for you?
  • Which type of mortgage is most suitable for your circumstances?

How much to borrow

The amount you are able to borrow is dependent on a number of factors, so you will need to consider the cost of moving, your monthly income and expenditure and your credit history.

Mortgage term

Your Mortgage Services Consultant can help you to find the right number of years (term) over which to repay your mortgage. If you spread your mortgage over a longer-term, your monthly repayments will be lower. However, please note that the longer your mortgage term, the more interest you will have to pay the lender.

Repayment options

There are two main mortgage repayment options available to you: repayment and interest only. The availability of both will depend upon your circumstances. Please note that part repayment part interest-only mortgages may also be available; your Mortgage Services Consultant can discuss this with you.

Please see our Repayment Methods Explained document to find out more.

Types of mortgage schemes

You have several options when choosing a mortgage scheme with the most common being Fixed or Variable. Your consultant will be able to help you decide the right scheme for you based on your individual circumstances.

For full details of the schemes available including advantages and disadvantages of each, please see our Mortgage Schemes Explained document.

We compare 1000s of mortgages

We compare 1000s of mortgages

Our associated company, Countrywide Mortgage Services will compare 1000s of mortgages meaning that you don't have to! When buying your first home, it’s important that you choose a mortgage that you are comfortable with. With so many lenders and mortgage products available, it’s easy to become confused. That’s why we’re here to help.

Visit our mortgages site

Your handy mortgage calculator helps you to estimate what your monthly repayments could be.

*Terms and conditions apply. Please be aware, these results are for illustrative purposes only and should not be considered as a mortgage quote. These are based on a repayment mortgage and may vary depending on the term and interest rate of your mortgage. For interest only mortgages please note, this type of mortgage is not accepted by all lenders unless an investment vehicle is also selected and in place. If the proceeds of your repayment vehicle doesn’t cover the full amount of your mortgage, you’ll be responsible for paying the difference. Lender fees may also be applicable.

If you would like guidance on the right mortgage for you, we recommend booking a mortgage appointment and speaking to one of our mortgage consultants who will be more than happy to help.

† The 4.7% annual interest rate is based on the Connells Group average mortgage interest rate taken from the period of 01/01/2023 – 30/06/2023 and is correct as at 04/07/2023.


Correct at time of publishing – February 2022


ALL MORTGAGES ARE SUBJECT TO STATUS AND LENDER CRITERIA.

 MOST BUY TO LET MORTGAGES ARE NOT REGULATED.

A BROKER FEE MAY BE PAYABLE UPON MORTGAGE APPLICATION AS WELL AS AN ADMINSTRATION FEE. THE TOTAL FEE PAYABLE WILL DEPEND ON YOUR CIRCUMSTANCES. YOUR MORTGAGE CONSULTANT WILL EXPLAIN ANY FEES APPLICABLE IN YOUR INITIAL APPOINTMENT.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU RE-MORTGAGE.

Countrywide Mortgage Services and Countrywide Insurance Services are trading names of Countrywide Principal Services Ltd which is authorised and regulated by the Financial Conduct Authority (Firm Registration Number 301684). Registered Office: Countrywide House, 6 Caldecotte Lake Business Park, Caldecotte Lake Drive, Milton Keynes, MK7 8JT. Registered in England no. 01707341. MS/CW/5942/02.22

Please note: 0800 118 2825 is a freephone number; some mobile providers may charge.

Get in touch

Our expert team of Mortgage & Protection Consultants are available to help you find the best mortgage for you - get in touch to book an appointment.

Opening hours

Monday – Thursday 09:00 – 19:00
Friday 09:00 – 17:30

Call or Email

0800 118 2825 Phone Icon Icon set Phone Email us
Arrow up Icon Icon set Arrow up
Renting
Letting

Lettings: Ashby Lowery Lettings is a trading name of Countrywide Residential Lettings Limited, Registered Office Greenwood House, 1st Floor, 91-99 New London Road, Chelmsford, Essex, CM2 0PP. Registered in England Number 02995024. Countrywide Residential Lettings Limited is a member of and covered by the ARLA Propertymark Client Money Protection Scheme. Countrywide Residential Lettings Limited is an agent and subsidiary of Countrywide Estate Agents Limited, Registered in England Number 00789476, Registered Office: Greenwood House, 1st Floor, 91-99 New London Road, Chelmsford, Essex, CM2 0PP. Countrywide Estate Agents is an appointed representative of Countrywide Principal Services Limited which is authorised and regulated by the Financial Conduct Authority FRN 301684. VAT number 500 2481 05.

Customer feedback | Location directory | Privacy policy | Cookie policy | Terms of use | Modern slavery statement

Copyright © 2023

Website powered by Homeflow