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How Much Deposit Do I Need?: As a general rule of thumb, you need to make a deposit of about 5 – 10% of the total amount you are borrowing.
What Happens During The Mortgage Application Process?: The mortgage application process, once underway, does not take very long. Once you have decided to go with a certain lender and signed a purchase contract, the lender will run a full credit check verifying your income, liabilities and your ability to repay the loan.
How Much Is The Valuation Fee?: The Valuation fee covers the expense of the mortgage lender visiting your prospective property to ensure that it is worth what you are intending to pay.
What Happens If Interest Rates Change?: If you have some form of fixed interest rate mortgage you will be unaffected by changes in interest rates. Otherwise you can expect a change in the rate of interest charged on your mortgage.
Base Rate Tracker Mortgage: A base rate tracker mortgage tracks the Bank Of England’s base interest rate then adds on a additional figure to arrive at the borrowers variable rate. Your monthly mortgage interest payments go up when the base rate goes up and they go down when the base rate goes down. The base rate tracker interest rate is usually between 0.5% and 1.0% above the Bank Of England's Base Rate.

How Is Interest Calculated On a Mortgage?

Interest is charged in different ways depending on what kind of mortgage you have.

With many modern mortgages where you have the opportunity to make payments at any time, your interest will be calculated on a daily basis. This generally means that your interest will be charged on the balance outstanding at the end of each day so you can benefit immediately from any payments of capital. It also means, however, that if you miss a payment or are late with payments, more interest will be charged. You will also be charged interest on any unpaid fees or premiums.

There are also many mortgages where the interest is worked out once a year, these are called 'annual interest' or 'annual rest' loans.

Mortgages which calculate your interest on a daily basis offer you a better deal because they instantly reflect your payments, reducing your total interest bill.