Monday, February 24, 2025
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First time buyer mortgages,
buy-to-let & remortgages

Securing a new mortgage to buy your first home, or remortgaging an existing property can be a daunting process. That’s why many people choose to use mortgage comparison services. Mortgage comparison services have access to multiple lenders and are able to provide additional advice, when you need it, so you can quickly assess the best mortgages

Giving Mortgages is a new mortgage comparison service designed to help you shortlist suitable mortgages. Simply answer a few pre-application questions and Giving Mortgages will match you with an adviser, who can then take you through the application process and help you secure a mortgage offer.

Mortgage Calculator

This calculation is a guide to how much your monthly repayments would be. The exact amount may vary from this amount depending on your lender’s terms.

Check mortgage affordability

Use the mortgage interest and repayment calculator as a guide to monthly repayments and interest payable.

Enter your purchase price, deposit amount and mortgage term, enter the interest rate to see an estimate of your monthly repayments.

As a guide the best 5 year fixed rate mortgages currently have interest rates ranging between 4% and 5%. 

IMPORTANT: The calculator shows monthly payments and total interest reflecting a fixed interest rate for the term. Interest rates are subject to change i.e. if you are on a variable interest rate & if a fixed rate ends. Interest rates can go up or down and your home may be repossessed if you are unable to meet mortgage repayments.

Found your ideal home, now get a mortgage in principle

Young couple celebrate getting a new mortgage.

If you’ve found the perfect home and want to make an offer a mortgage in principle, or mortgage agreement in principle, provides proof of funding from your mortgage lender.

With a mortgage in principle you can make on offer on a property based on your deposit and the amount you are able to borrow.

Compare mortgages at Giving Mortgages – Find out how much you can borrow and get a mortgage in principle today!

Mortgage checklist, details you’ll need to find the best mortgages

To compare the best mortgages and complete a mortgage application you’ll need to confirm your identity and provide some basic details about your financial situation:

Income & employment check

Your own (and partners) full-time, part-time or self employment. Annual/monthly earnings, balance after monthly expenses and outgoings.

Proof of identity check

Proof of your own identity and any other person also going on the mortgage.

Usually photographic ID (e.g. drivers license / passport).

Deposit, savings & debt check

Mortgage applicants savings, any loans or other outstanding debt. 
Your deposit, how much you can put towards the property.

Affordability check how much can you borrow

The mortgage affordability, assesses earnings of mortgage holders, savings, deposit and how much the lender is willing to lend.

Which mortgage is best

First time buyer mortgage

First time buyer mortgages are specifically for new buyers, anyone who has never owned a property anywhere before.

First time buyer mortgages are not accessible to anyone who has inherited property or has shared ownership of another property.

First-time buyer mortgages are available to individual buyers , couples and others where all applicants meet the definition of a first time buyer.

First time buyers can access other mortgages but may choose to opt for a first-time buyer deal if it’s more favourable.

Remortgage

A remortgage is when you change your mortgage deal, this can be by moving to a new lender or negotiating a new deal with your existing lender.

Usually you remortgage around the time an existing fixed rate, tracker or discounted rate is coming to an end.

You can usually start looking for deals around 3 – 6 months before your existing deal ends and secure an offer either with your existing provider or a new one.

If you are on a SVR you can usually remortgage or switch mortgage provider at any time without early repayment fees.

Moving home mortgage

When you move home, most mortgage provers will allow you to take your existing mortgage – ‘port your mortgage’ over to your new property.

Your mortgage company may require additional valuation and an in-depth survey, especially if you need to increase your borrowing in order to buy the new property. 

Porting a mortgage is often the simplest solution especially if you are on a fixed term deal. 

Buy-to-let mortgage

A buy-to-let mortgage is specifically designed for buyers looking to buy investment property to rent to out to paying tenants.

Lenders will base borrowing on potential rental income, rather than a buyers personal income.

Buy-to-let lenders typically expect rents to cover at least 130% of monthly mortgage repayments. A buy-to-let mortgage usually requires buyers to put down a larger deposit anywhere between 20% & 40%. 

Mortgage interest rates & settings

Mortgage typeWhat happens when rates change
Standard variable mortgageStandard variable rate (SVR) is the default rate set by a mortgage provider. Your monthly payments will rise and fall as the base rate changes. You usually automatically move to the SVR if you have not negotiated a new deal when your fixed, tracker, or discount rate comes to an end.
Fixed rate mortgageFixed rate mortgage deals last for a set period of 2, 3, 5 years or longer. You will pay the same amount each month on mortgage repayments over the fixed term.
Tracker mortgageThe mortgage interest rate tracks the base rate, so if the base rate increases, your monthly mortgage payments will increase. If the base rate decreases, your monthly mortgage payments will decrease.
Discount variable rate mortgageThe mortgage interest rate is set at a percentage below the lender’s own standard variable rate (SVR) e.g. If the mortgage providers SVR is 4.95% and the dicount is set at -1% your interest rate will be 3.95%. Note: Your rate will rise and fall in line with movements in the providers SVR.

Mortgage FAQs

A mortgage is a loan from a bank, building society or other lender that provides finance to purchase property. Borrowers usually make monthly repayments with interest.

Most mortgages are secured against the value of the property you’re buying, so if you default on repayments the lender could potentially repossess your home (you could loose your home if you are unable to meet mortgage/loan repayments).

Purchasing a property with a mortgage technically means you won’t own the property outright until the mortgage has been repaid. You can live in a mortgaged property as soon as a purchase is completed, however you must ensure you are able to keep up with repayments each month.

UK mortgages are typically  around 25-30 years from initial purchase, however  a mortgage can be longer or shorter, depending on income and age of the mortgage holder/s.

Longer term mortgages spread repayments over a longer period, so monthly costs can be kept lower. However it will take longer to repay the mortgage and and you will pay more interest.

A mortgage decision in principal (DIP) or agreement in principle (AIP) is confirmation that a lender is willing to provide a home loan.

A mortgage in principal is  useful when looking for a property, as it helps to indicate that you will be approved for a mortgage down the line, however it assumes you will be able to meet the full criteria when you go on to make a full mortgage application.

Loan-to-value (LTV) is the ratio of the difference between the mortgage and the property value. Effectively it expresses the size of the loan relative to the property’s total value. e.g. if you’re buying a £100,000 property with a £10,000 (10%) deposit, you’ll need a 90% LTV mortgage.

APRC stands for ’annual percentage rate of charge’, it’s something you’ll see on mortgage adverts and quotations. APRC is the rate you’ll pay if you stick with this mortgage for its whole term.

It helps to provide a guide to the total cost of a mortgage over a full term based on repayments and interest. However as mortgages tend to be re-negotiated after a few years (e.g. 2, 3, 5 years), the APRC is limiting, as interest rates are subject to change between re-mortgages.

Most residential mortgages are repayment mortgages. If you are buying your own home to live in, you will most likely want to secure a repayment mortgage (a home loan designed to be repaid in full, plus interest over a number of years). At the end of your mortgage term, you have paid off all finance and you will own your home outright.

Interest-only mortgages are considered riskier as you only repay the loan interest and not the loan. At the end of the term you will still owe the full loan amount. Most lenders will want to know how you intend to repay your loan when the mortgage ends. You would need to consider how you will pay for your property at the end of the term, or, if you will have to sell it in order to pay back your mortgage provider.

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