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What Exactly is a Mortgage?: A mortgage is basically a loan – a loan that is secured on the value of a property which you pay back over a given period of time.
What Happens During The Mortgage Application Process?: The mortgage application process, once underway, does not take very long. Once you have decided to go with a certain lender and signed a purchase contract, the lender will run a full credit check verifying your income, liabilities and your ability to repay the loan.
What are Variable Rate Mortgages?: A variable rate mortgage is when you pay a standard variable rate (SVR) that changes in line with the Bank of England's base rate. The SVR is usually between 2% and 4% higher than the Bank of England's base rate, but this will vary from lender to lender.
What are Self Certification Mortgages?: When you apply for a mortgage, the lender will require from you proof that you will be able to maintain the mortgage payments, and do not present a risk of non-payment for the large amount of money you are borrowing.
Right To Buy Mortgage: What is ‘Right to Buy’?

How Is Interest Calculated On a Mortgage?

Interest is charged in different ways depending on what kind of mortgage you have.

With many modern mortgages where you have the opportunity to make payments at any time, your interest will be calculated on a daily basis. This generally means that your interest will be charged on the balance outstanding at the end of each day so you can benefit immediately from any payments of capital. It also means, however, that if you miss a payment or are late with payments, more interest will be charged. You will also be charged interest on any unpaid fees or premiums.

There are also many mortgages where the interest is worked out once a year, these are called 'annual interest' or 'annual rest' loans.

Mortgages which calculate your interest on a daily basis offer you a better deal because they instantly reflect your payments, reducing your total interest bill.