So you’re looking for
a Mortgage?

You can apply for any of the above mortgages as a couple or group of friends (although not all providers will allow more than two people to apply together). If you do decide to do this, bear in mind that you will share the responsibility of making repayments, which means that if your mortgage partner becomes unable or unwilling to pay, you’ll be liable.

When deciding how to pay for your mortgage, you generally have one of two options – you can apply for an interest-only deal or opt for full repayment.

Repayment mortgages are designed so that, by the end of the mortgage term – which can range from 25-35 years and beyond – you’ll have paid off the full balance plus interest and will have nothing further to pay. Your repayments will be calculated accordingly, and while they’ll be higher than if you had an interest-only deal, you can be confident that you’ll have paid off everything by the end of the term.

• The shorter your mortgage term is, the cheaper your mortgage will be for the entire term because you’ll pay less interest overall.
• Longer mortgage terms often mean lower monthly repayments, but could cost you more over the length of the mortgage.

Ideally, you should aim to set your mortgage term for as short a period as possible, as that way you won’t pay as much interest – although it does mean higher monthly payments. Conversely, a longer-term mortgage will reduce the monthly payments, but means you pay more overall, as interest will be charged for a longer period.

It’s important to weigh up your options carefully, as your decision will often be based on your current financial situation. However, it could be possible to change your term when it’s time to remortgage, so even if you want to keep your repayments low for the foreseeable future, you could opt for a shorter term when your financial situation changes. Remember, too, that if you find you can pay more, you may be able to make overpayments that can reduce your mortgage term.