What does 'loan-to-value' (LTV) mean?

This is the percentage of the property value you're loaned as a mortgage – in other words, the proportion you're borrowing. To calculate this, simply subtract your deposit/equity as a percentage of the property value from 100%. So if you've a £60,000 deposit on a £300,000 home, that's a 20% deposit. This means you owe 80% – so the LTV is 80%. Read more on how to calculate your LTV .

Why is LTV important?

Your LTV has a big impact on the kind of interest rate you might be able to get on a mortgage. That's because mortgage and remortgage rates are priced in the LTV bands – and the bigger deposit/equity you have, the lower the interest rate will be. See what the main LTV bands are in our How much can I borrow? guide.

Will my credit history impact my chances of getting a mortgage?

Yes, your 'creditworthiness' is one the two big factors which dictate whether you'll be accepted for a mortgage (the other being your 'affordability') – and one of the main ways a lender judges your creditworthiness is by looking at what's on your credit report. As a poor credit history can scupper your chances of getting a mortgage, before any application it's best to check your credit file (for free) and then read up on how to get your credit report into better shape .

Do I need to get a mortgage-in-principle?

In a word, no. A 'mortgage-in-principle' – or an 'agreement-in-principle' – is a conditional offer from a lender saying you may be accepted, based on a quick check of your income and, possibly, your credit file. In a heated property market, you are likely to be asked for one by a seller before they will accept an offer. In addition, for first-time buyers, it boosts confidence they'll be accepted. But it offers no guarantees. Do be mindful that too many of these checks in a short space of time could harm your credit rating.

Should I use a mortgage broker?

When applying for a mortgage, you've got two ways of going about it: applying directly yourself, or applying via a mortgage broker. If you're mortgage-savvy, then you might consider applying directly. But for many, applying through a mortgage broker is the most sensible route. On top of guidance for those who find sorting a mortgage tough, brokers have details of most lenders' acceptance criteria (not usually publicly available), which they can use to place your application with a lender more likely to accept you. Plus, there are some top deals that can only be accessed through brokers.

How long does a mortgage offer last?

All mortgage offers last for a fixed amount of time. In the case of major mortgage lenders, an offer tends to last for six months. With smaller brokers, offers might only last as long as three months.

Can I get an interest-only mortgage?

Interest-only mortgages still exist, though these days they are the preserve of higher earners with a large deposit who can provide proof of being able to pay off the entire mortgage balance as a lump sum in future. For most borrowers, a capital repayment mortgage is the way to go. With this kind of mortgage, you'll be repaying both the capital you've borrowed and the interest due each month (rather than just the interest, as is the case with interest-only), meaning your debt will be cleared by the time the mortgage term ends. For more on the difference between capital repayment and interest-only, see our What mortgage to choose? guide.

How long should I fix my mortgage for?

Mortgage deals typically fall into two broad categories: fixes and variables. Read up on how both work in our What mortgage to choose? guide. Where you're looking to 'fix' your mortgage, you'll need to decide how long you'd like to fix for. For example, two, three, five, 10 years? This is a really important decision to make, and one that – if you get it wrong – could be very costly. As there are several factors to take into account when working out how long to fix for, there is no one-size-fits-all answer. Our What mortgage to choose? guide takes you through what needs considering.

Should I overpay my mortgage?

Most mortgage deals allow overpayments – typically by up to 10% of the outstanding mortgage balance each year. Overpaying could mean you save £1,000s, even £10,000s, in interest, and reduce how long it takes to pay off your mortgage. Yet while overpaying works out for some, for others it's more sensible to save instead. Our Should you overpay your mortgage? guide helps you decide.

Can I make myself more attractive to a mortgage lender?

Yes, there are various ways of improving your chances of being accepted for a mortgage. These range from quick fixes like getting on the electoral roll to gradually bolstering your credit report. We've got 18 top tips on how to boost your mortgage chances .

Mortgages & Homes

Guides and tools to help you get the best deal on your mortgage

Find top mortgage deals for you

Our mortgage best buys tool lists 1,000s of deals from different lenders
Filter your search by the type and length of mortgage you want
See all deals available to brokers and crucially direct-only deals too

SEE OUR MORTGAGE BEST BUYS

Our mortgage need-to-knows

Need to know more? Our guides can help with the essentials...

Boost your mortgage chances with 18 helpful tips
Find a cheap mortgage either via a broker or direct
First-time buyer help if you're getting on the ladder
Remortgage help if you need a new deal
Overpay on mortgage and potentially save £1,000s
Leasehold and freehold have key differences

What's happening to mortgage rates?

Interest rates on mortgages remain much higher than they were a couple of years ago (when deals were as cheap as 1-2%). Despite some periods of rate cuts since then, there have also been spells of rate increases – with the cheapest mortgages now starting from around 4%.

See today's mortgage rates

What type of mortgage should you choose?

When you're working out which mortgage deal will suit you best, you'll need to choose if you want:

Repayment or interest-only
Fixed rate or variable
Two, three, five, 10-year deal or longer
Flexible features

There's lots to consider, so before looking at interest rates, read our guide on the different types of mortgages available and how they work.

How much will your mortgage cost?

Our mortgage calculators help you do the sums – from how much you can borrow and saving for a deposit, to comparing the cost of deals...

Basic mortgage calc to see how much a deal will cost you
Compare fixed mortgages calc to work out which deal is cheaper
How much can I borrow calc to get an idea of your buying budget
Saving for a deposit calc to see how much you'll need to put aside
Overpay mortgage calc to see what it might save you over time

Use our
mortgage calculators

Help for first-time buyers

Getting on the property ladder can be exciting and daunting in equal measure. We've got plenty of guides to help you...

First-time buyer guide for step-by-step help
Boost your mortgage chances by reading our 18 tips
Lifetime ISAS are a great way to boost your deposit
Stamp duty might need paying – work out how much it could cost
Shared ownership is an option if you'd struggle to buy outright

See our first-time buyer mortgage help

Struggling to pay your mortgage?

High interest rates and the cost-of-living crisis means more people are struggling to pay their mortgage.

Reassessing your finances should be the first step. If you need extra help there might be other options available – such as lender support, benefits, state support and insurance. Our guide takes you through it.

What to do if you're struggling with your mortgage

Martin Lewis on using a mortgage broker

Martin Lewis: "Just going to your existing bank or building society for a mortgage means you’ll only be offered its products – nothing wrong with that as a benchmark, but you really want to get the best deal from across the mortgage market. That's where a good mortgage broker can help. I often favour sorting your finances out yourself. But as mortgages are such a big single transaction, getting professional help can be a boon."

MoneySaving successes

Below we've featured some fantastic success from MSE users who've used these guides to save money on their mortgage. If you've found success using our tools or guides, let us know via email.

"I took out a 25-year mortgage, paying a rate of 6%. But by overpaying the mortgage, I managed to clear it 12 years early and saved £35,000 in the process."

Cheryl, May 2024

"I used MSE to find a five-year fix a number of years back and again two years ago to find a cheap fix at 1.2%."

Angela, Jan 2024

Read MSE newsletter which said mortgage rates were getting cheaper. Our new mortgage hadn't started, so our mortgage broker switched us to a better rate, saving us £2,400 over five years.

Ruth, Feb 2023

Mortgage FAQs

MSE Tools & Calculators

Tools & Calculators

Compare Fixed-Rate Mortgages

What is the interest rate? Is there a fee?

Tool

How Much Could You Borrow?

Our calculator will give you a good idea

Tool

Overpay Your Mortgage?

Some could save £1,000s in interest

Tool

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Mortgages & Homes

Are you a first-time buyer? Use our helpful First-Time Buyers' Guide for top tips on boosting your mortgage chances, different mortgage types, the fees you'll likely pay and much more information.

Looking to remortgage? Our free Remortgage Guide helps you weigh up whether remortgaging is the right option for you, discusses ways of getting the best deals and explains how to lock in a deal early.

We've also got other guides with a Stamp Duty Calculator and a timeline to Buying a home, but if you want to jump straight into comparing mortgages, then check out our Mortgage Best Buys tool. We also have several mortgage calculators to help you crunch the numbers.

Moving home? See our top tips in the How to sell your property guide.

Kit Sproson | Senior Money Writer – Mortgages Expert | Edited by Hannah McEwen | Money Editor

Updated 30 July 2024 | Created 4 July 2018

How this site works

We think it's important you understand the strengths and limitations of the site. We're a journalistic website and aim to provide the best MoneySaving guides, tips, tools and techniques, but can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong.

This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service.
We don't as a general policy investigate the solvency of companies mentioned (how likely they are to go bust), but there is a risk any company can struggle and it's rarely made public until it's too late (see the Section 75 guide for protection tips).
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Mortgages & Homes

Guides and tools to help you get the best deal on your mortgage

Find top mortgage deals for you

Our mortgage need-to-knows

What's happening to mortgage rates?

What type of mortgage should you choose?

How much will your mortgage cost?

Help for first-time buyers

Struggling to pay your mortgage?

Martin Lewis on using a mortgage broker

MoneySaving successes

Mortgage FAQs

Mortgage & Homes Guides

Tools & Calculators

How this site works

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