A mortgage is a long-term loan for a piece of property (house/ flat/ bungalow etc). It's the biggest loan you will ever take out in your life - and can take what seems like a lifetime to pay off! (20 - 30 years).

Frequently asked questions

Where can I get a mortgage?

As a first time buyer there are plenty of banks and building societies who are willing to give you advice and possibly lend you money.

Is there a difference between a bank mortgage and a building society mortgage?

Both offer similar types of mortgages but all mortgage lenders, banks or building societies, will offer slight differences to get your business and make their deal sound better than the rest.

Which is the best place to go for a first time buyer?

It doesn't really matter. To know what each one offers you should talk to mortgage advisers at both. Never take the first offer - always check out as many as you can.

What happens when you go and ask about a mortgage?

Before you start, the mortgage adviser will probably ask you some questions - e.g. How old are you? What type of job do you do? How long you have been in work? How much do you earn?

They will be able to tell you straight away whether you can afford a mortgage and how much they could offer you. As a general rule, your monthly mortgage repayment should not be more than half your monthly income after tax.

What sort of questions should I ask?

Basically, you want to know about the different options open to you. Just ask what's available and let the adviser do the talking. Take a notepad and write down the figures he gives you or ask him/ her for a print out, so you compare and think about the different mortgages when you get home.

By the time you have seen three or four advisers, you will know the right questions to ask!

There seems to be so many options, it hard to get a clear picture of what's available. How many types of mortgages are there?

When you talk to a mortgage lender, listen for these key phrases. If he/ she doesn't mention them ask if they offer these options:

A fixed-rate mortgage
A variable-rate mortgage
A capped-rate mortgage

Other types of mortgages to ask about include:

A capital repayment mortgage
An endowment mortgage
A pension mortgage

mortgage protection
cashback schemes
illness cover

If I apply, can a lender refuse to give me a mortgage?

Yes, if they don't think you can keep up the payments.

Is there anything else I should know about getting a mortgage?

You will need a solicitor or licensed conveyancer to handle the legal work. Ask for a written estimate of fees from several before you choose which one to use. If there are complications, the final bill may be more.

Most buyers need to pay a deposit of at least 5% of the price of the property. Make sure you have this money available.

Working out the costs

Abbey National helps you to work out on-line how much it would cost you to borrow money for different types of mortgages. Just enter the total amount you would like to borrow.
http://www.abbeynational.co.uk/chile.cgi?
id=2958502-5095&hr=mortgage/ftb.hot

Info

First Time Buyers Information Guide
http://www.swait.co.uk/ftbguide.htm

Twelve steps to getting a mortgage
http://www.swait.co.uk/mortgages.htm

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