01789201914 enquiries@capc.uk.com

The Ultimate Mortgage Guide


Are you planning to get a mortgage, but don’t know where to start? This ultimate guide to mortgages will tell you everything you need to know to secure yourself a mortgage.


What is a mortgage?

A mortgage is a loan of money that enables a person, or people to take ownership of a property.


Steps to getting a mortgage

Work out what you can afford

Use a mortgage Calculator to get a rough idea of what you can borrow.  It is also a good idea to take a look at your credit score as this will affect how much you can borrow.

Save a Deposit

Work out how to save a deposit. The higher the amount you are able to use as a deposit, the more options you will have available in terms of property prices and interest rates.

Find a house

There are plenty of websites (e.g. Rightmove) that will make your search easier, by filtering to the area you are looking at, your price range and even any features like a garage or local schools, that you might be looking for.

Find a mortgage product that suits you

You can use comparison sites to find a mortgage that suits your needs or seek mortgage advice from a broker that can compare thousands of mortgage products to find the most suitable mortgage for you. This is a very important stage as the right mortgage product can save you thousands.


Get a mortgage in principle

This will confirm how much you can borrow from the lender. What is a mortgage in principle?


Make an offer

Once you have found the property that you want to make an offer on, you will submit your offer and wait to see whether it is accepted.


Appoint a solicitor and surveyor

You will then need to appoint your solicitor and arrange for a survey on the property. Your mortgage company will usually perform a valuation to ensure that they are happy to lend you money based on their valuation of the property.


Exchange contracts

If the survey and reports come back without any concerns and the bank is still happy to lend the amount agreed in principle, you will then exchange contracts. At this stage you should arrange insurance for the property.


Your solicitor will then arrange the transfer of the money from your mortgage lender to the seller and you will arrange to collect the keys and move in.



Upfront costs 

Make sure you have considered the following costs, so you don’t get a nasty surprise during the mortgage process.

  • Deposit
  • Stamp Duty
  • Valuation Fee (Not all lenders charge this)
  • Surveyors Fee
  • Legal Fees (Solicitors)
  • Broker Fee


Ongoing mortgage costs?

There are many different variables that will determine how much your mortgage will cost, including:

  • The amount of money you are borrowing
  • The interest rate you are paying
  • Any mortgage fees
  • The type of mortgage (Interest Only vs Repayment)
  • The number of years you take the mortgage out over

The more money you borrow, the more you are likely to pay in interest rates over the term of the loan.

Mortgage fees vary greatly from one mortgage provider to another, so it is definitely worthwhile comparing different mortgage deals to see which have the best overall costs.

The length of years that you agree to repay the mortgage back over will also impact the cost, as you will pay more interest over 30 years, for example than if you repaid the same amount of loan over 10 years.

Contact our expert advisers now

Call free from landline or mobile

01789 201 914

Interest only Vs repayment mortgages

There are two main types of mortgage payment agreements – Interest Only and Repayment.

Interest Only is exactly what it says, it is where you only pay back interest on the loan for an agreed period of time. At the end of the Interest Only period, you will not have paid off any of the loan, so if the mortgage was for £150,000, you would still owe the full amount.

With Repayment mortgages, each month you pay off both interest and capital, which means your loan reduces over time, with the full mortgage being paid off by the end of the loan term.


Fixed and variable rate mortgages

Another decision to make is whether to opt for a fixed or variable rate mortgage.

A fixed rate will stay the same for an agreed period of time such as two years. So in that time, you know that your mortgage payments will stay the same each month.

With a variable rate, the interest charges can fluctuate if the bank decides to change the rate. This will usually happen due to changes in the Bank of England base rate but banks can change their variable rate even if the Bank of England base rate is unchanged.

Why do mortgages get rejected?

Rejections can happen for a number of reasons, usually due to affordability and/or a poor credit history.

You will be asked to provide proof of earnings through payslips and it is a good idea to check your credit score.

If you have outstanding loans, a history of struggling to make payments or frequently using your overdraft then this can all affect your mortgage application.

7 Tips to Improve Your Credit Score


Residential vs commercial mortgages

Residential Mortgage – Mortgages are available for residential properties (homes that people will live in)

Commercial Mortgage – Mortgages for properties that are used as business premises. A commercial mortgage will usually have higher interest rates, shorter terms and the agreement will be in the business name rather than an individual.



You now know the basic steps to getting a mortgage, if you have any questions or require any help securing a mortgage, do not hesitate to get in touch.



What is your number one tip for people looking to get a mortgage?


Submit a Comment

Your email address will not be published. Required fields are marked *

Contact our expert advisers now

Call free from landline or mobile


Not the right time for a call? Email us and we can arrange a good time to discuss your needs


Mortgage Blogs

What Protection Should I Consider When Getting A Mortgage?

What protection should i consider when getting a mortgage?   For most people, the biggest expense in life will be the mortgage for their house, so it makes sense that you think about getting protection in case you need help to pay your mortgage at some point in...

What Is a Mortgage In Principle

What is a ‘Mortgage in Principle’?  When you are in the early stages of applying for a mortgage, you may come across a number of terms that you are not familiar with or that you do not fully understand. The term ‘Mortgage in Principle’, sometimes referred to as a...

How To Get A Credit Score For Free

How to Get a Credit Score for Free  There are certain times when it is important to have a good idea of how your financial background will be regarded by potential lenders, for instance, when you are applying for credit and particularly if you are applying for a...

Does Gambling affect my mortgage application?

Does gambling affect your mortgage application?  Applying for a mortgage is a process that will involve heavy scrutiny of your financial history and current income and expenditure. A house mortgage is probably the biggest loan you will ever take out, so banks will do...

A Guide to Residential Mortgages

What is a residential mortgage   A residential mortgage is a loan of finance that enables someone to acquire a house to live in. The mortgage will usually be provided by a bank or building society, with a term agreed over which to pay back the loan. The amount...

7 Ways To Fall Back In Love With Your Home

Every now and then, everyone needs a little pick me up, including your home. Over the years, scuffs and scrapes can make a house look untidy and you can soon fall out of love with your home, which becomes a place just to rest your head, rather than a space to relax...

What You Need To Know When Buying A House With a Friend

Buying a house with a friend could be a great way for you to get on the property ladder quicker than if you were buying by yourself, plus, you won’t have to take the financial hit quite as hard when there’s someone to share the cost with. However, there can be some...

The Ultimate Guide To Remortgages

Applying for a remortgage can be complicated, there are so many different types of deals available right now that it can be a challenge just working out where to start! People apply for a remortgage for a wide range of reasons, it is not a case of just finding the...

What’s the mortgage process for buying a new build home?

As we’ve seen from our previous article, there are many reasons why you might want to buy a new build home. Many people like the fact that the property comes with the safety net of guarantees, plus you can choose your own fixtures and fittings that suit your style,...

Why buy a new build house?

Just like everyone has their own style when it comes to fashion, it’s the same when it comes to houses. Some people prefer period houses that have character and unique features, whereas others might prefer a new build property with a clean, modern look and feel that...

What happens to your mortgage when you move home?

While moving home can be one of the busiest and most stressful times in your life, sorting out your mortgage doesn’t have to be. In fact, mortgages can be pretty straightforward when moving home, whether you take your current mortgage with you to your new property or...

The Art Of Decluttering

We all know that feeling when your house becomes so full that you feel like you can’t see the wood for the trees. If this sounds familiar to you, then it’s time to sit up and finally de-clutter your house, once and for all! Over the years, your belongings build up....

Remortgaging To Raise Capital

There may come a time when you want to use the money that is tied up in your home for something else, such as for home improvements. Going through this process is known as releasing equity.

The ins and outs of overpayments

Once you’ve settled into your mortgage and have gotten used to your new outgoings, you may find that you have a bit more disposable cash than you first thought. So the next question is: what should you do with the money?

Ready To Discuss Your Mortgage Options?

Speak to a member of the team now

Monday – Friday


Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances and loan amount. The fee is up to 1.5%, but a typical fee is 0.67% of the amount borrowed.

©2019 |CAPC is a trading name of Christopher Allen Private Clients Limited which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the financial conduct authority.

Christopher Allen Private Clients Limited. Registered Office: 7 Arrow Court, Adams Way, Alcester, Warwickshire, B49 6PU. Registered in England Number:08820469

We use cookies on this website to give you the best experience we can. To find out how to turn off cookies, have a look at our privacy & cookies policy