Compare mortgages

According to HomeOwners Alliance, you can expect to wait around 2 to 4 weeks between applying for a mortgage and it getting approved.

But this might not be the case for you – it could take longer. It depends on your individual circumstances and a mortgage broker can keep you updated on your application.

Mortgage interest rates are affected by:

• LTV ratio
• Individual financial circumstances
• Bank of England base rate

The lower the LTV ratio, typically the better mortgage deals you get access to. So it can be worth trying to save up a larger deposit in order to get a lower rate.

Lenders also look at your individual financial circumstances when determining what they are willing to lend you. If you have a poor credit history, they might see you as more of a risk and charge higher interest rates as a result.

The Bank of England base rate, which changes based on wider economic issues and inflation, directly influences tracker mortgage rates. But it also influences SVRs and discount mortgage rates.

Fluctuations in the base rate normally also mean the fixed rates available in the market may change (although those already locked into a fixed deal won't see any change in their rate).

An agreement in principle (also known as a decision in principle or mortgage in principle) is an indication from a bank or building society that they could lend you a certain amount towards a property.

This gives you a rough idea of what kind of property you can afford to buy. And estate agents may only take your offers seriously if you have one.

You're not committing to anything with an agreement in principle. But that also means you're not guaranteed to get that amount when it comes to applying for the mortgage.

LTV is a percentage that shows how much you’ve borrowed based on the value of a property. Let’s take an example.

If your property is worth £300,000 and you put down a deposit of £30,000, then your mortgage is £270,000. As your deposit is 10% of the property’s value, your LTV is 90%.

APRC means the Annual Percentage Rate of Change.

Most mortgage deals have 2 different rates when you first apply - an introductory rate and an SVR. They also have different fees. This means it can be difficult to work out which overall deal is better for you.

The APRC takes this into account. It brings together the different rates and fees to show you the annual cost of a mortgage over its full term. This can make it easier to compare mortgage deals.

For example, it could be that one mortgage has a lower introductory rate but a higher SVR. This might make it less of a good deal compared to one with a higher initial rate but a lower SVR.

But bear in mind that most people remortgage after their initial deal period, avoiding the SVR. It can still be worth looking at the initial rate as well for this reason.

When you get a mortgage, you may have to pay certain fees and charges, such as an arrangement fee, valuation fees and legal fees.

The amount you pay depends on the deal you choose. It's important to look closely at these fees when comparing mortgages, and a broker can help explain them to you.

There are a few options for your mortgage when you move home. You might be able to port your current mortgage over to the new property. It's worth checking if your bank or building society allows this.

You could also remortgage to a new deal. But you may face early repayment charges (ERCs) for leaving your existing deal, and these can amount to thousands of pounds.

A mortgage broker can help you work out the right option for you, based on your circumstances and your existing deal.

If you’re thinking about paying off your mortgage early, some lenders might let you make increased monthly payments. Or you might be able to put down a lump sum as a single large mortgage overpayment.

Most lenders have limits on how much you can overpay before being charged ERCs, though. Get in touch with your mortgage provider to check what rules they have around overpaying on your mortgage.

If you're currently on the SVR, you won't face any ERCs. This is also the case for certain tracker products.

A repayment mortgage is exactly how it sounds. You repay part of your mortgage every month. Each repayment includes part of the money you borrowed and part of the interest that the provider is charging you.

At the end of the mortgage term, you've paid off the full amount you borrowed. And once it’s all been fully paid off, you own your property outright.

An interest-only mortgage means you only pay the interest each month. So, your payments aren't reducing the total mortgage debt.

At the end of the mortgage term, you still have to pay back the total balance of money you borrowed. Once you’ve done that, you own your property outright.

Interest-only mortgages are very rare for residential properties and are normally used for buy-to-let mortgages.