Purchasing a property is likely to be the largest purchase you will make in your lifetime and this guide to mortgages should make things a little easier to understand.
Mortgages at M.A.I.N
Updated: 21st May 2020
Mortgages to most people can be quite a scary prospect. Choosing the right mortgage and getting the right advice is imperative. We have created a basic guide to help you understand the different terms and types. However, when arranging a mortgage with M.A.I.N, we will go through all of the steps with you and find the perfect option for your circumstances.
What is a Mortgage?
A mortgage is basically a loan taken out specifically to purchase a property or land.
You can adjust the term to suit your needs, but most will run for 25 years as an average.
The loan is secured against the value of the property/land until the loan is paid off. If you do not keep up your payments, the lender can repossess the property and sell it to get their money back.
What can you afford to borrow?
A lender will always want to assess your affordability using proof of income and bank statements etc. We always invite you to a free initial appointment (face-to-face, telephone, Zoom call) to discuss your affordability and in most cases provide a decision in principle the same day. You can then start looking for houses in your price range and take the first step towards buying your first home.
How much deposit do you need?
When purchasing a property you will need to put down a deposit. This amount will go towards the cost of the property. The higher deposit the better. This is because the higher deposit, the lower the risk to the lender and therefore the lower the interest rate. The average deposit amount is 10% with some lenders offering a 5% deposit.
Different Types of Mortgages
Fixed Rate
The main benefit of taking a fixed rate deal is that the interest rate you pay will stay the same throughout the length of the term.
You have a number of options with regards to fixed rate terms, you can take a two year, five year or ten year fixed rate. By taking a fixed rate mortgage you can budget accordingly and ensure that you know the exact mortgage payment amount, will be the same each and every month.
Variable Rate
The opposite to a fixed rate mortgage, the interest rate can change at any time. If the interest rates rise, you will need to have savings to cover the increase in mortgage payments.
A standard variable rate mortgage is set by the Bank of England base rate. The advantage is that you may have more flexibility with overpaying and have the ability to change lender at any time.
Tracker Rate
A tracker mortgage will run alongside another interest rate, which is usually the Bank of England base rate, plus an additional percentage. Therefore, if the base rate increases, your rate will increase by the same amount.
A tracker mortgage is usually a short term option of between two and five years. The advantage to taking a tracker rate is that if the base rate drops, so will your rate. The disadvantage is that if the rate increases, so will your rate.
Book Your FREE Appointment
You may not know which is the right type of mortgage, right lender or the right product for you. We do. Simply book your FREE appointment and we can find the perfect option for you.







Why use Mortgage & Insurance Needs?
We have alluded to the fact that this may be the biggest single purchase of your lifetime. It’s important that you get the right advice.
At M.A.I.N, we find out about your particular needs and circumstances and find the product to suit you. A tailor made service rather than making you fit the product.
We assess over 27,000 different mortgage options to find the most suitable deal for you. We have access to exclusive rates and features that you won’t find on the high street.
You will have a broker by your side and a team of professionals at your beck and call.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.