This stands for Annual Percentage Rate of Change. It takes mortgage fees into account with the interest rate and expresses it as a percentage.
This greatly affects how much you’ll have to pay. The higher the deposit, the lower the interest rate you are likely to get.
This is what your mortgage will switch to after your fixed rate ends. You don’t want to get persuaded by a mortgage with an amazing initial rate, followed by a rip-off standard rate.
How often interest is charged will affect how much you have to pay overall. Daily interest is cheaper than monthly and annually charged interest.
Check how flexible your mortgage is - can you overpay without being charged or take a break from making payments without consequence?
Length of rate
Check how long you are locked into your fixed or variable rate deal, or if it’s flexible. You don’t want to get charged for switching before the deal ends.
Conveyancing is the legal term for when a property is transferred from one owner to another - a conveyancing solicitor does all the admin to ensure this process is legally valid and that you receive all the title deals to your property.
Not quite.Equity release means retaining use of a house or other object which has capital value, while also obtaining a lump sum or a steady stream of income, using the value of the house. Remortgaging is when you pay off an existing mortgage debt using a new mortgage. This is usually done to save money with a lower interest rate, or to raise money by borrowing against equity.
Lenders use affordability calculators to work out how much you’ll be able to borrow. In general, you can borrow up to 4.5 times your annual salary.
In most cases mortgages are portable but this is subject to the lenders underwriting criteria at the time.
The amount you need to deposit depends massively on your credit score. You need at least 5% deposit to purchase a property (though typically this tends to be higher) or 25% for a rental property.
When you take out a mortgage, many lenders will advise you to get protection so that if anything happens to you, your family isn’t burdened with continuing the payments. In fact, some lenders will only give accept if you also take out life insurance for the value of your mortgage. We wrote more about life insurance and protection here.
Stamp Duty Land Tax must be paid when you buy a property or land over a certain price in England and Northern Ireland. This tax is different if the property or land is in Scotland or Wales. Currently, the threshold for residential properties is £125,000 and non-residential land and property is £150,000. There is a discount (relief) on the amount you pay if you complete the purchase after 22 November 2017, the purchase price is £500,000 or less, or if you’re a first-time buyer. You can use this calculator to work out how much you need to pay.
This figure is a highly unique amount that depends on many factors, such as the amount you borrow, the interest rate available and how long it will take to repay the mortgage.