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Learn what a mortgage quote is and what to consider when requesting one.

What is a mortgage quote?

Your mortgage quote is an illustration of the costs of you borrowing a certain amount of money under certain specified conditions, along with an illustration of the cost to you. Details of the quote will range from the type and structure of the loan, to the interest rate and deposit needed and a prediction of your monthly payments.

Several factors determine the details of your mortgage quote.

What type of mortgage do you require?

Renting to tenants: To buy a UK property to let out to tenants, you will need an investment property mortgage.

To buy your main home: A primary residence mortgage is used to buy the property that will be the main home for you or a member of your family.

Remortgage: A remortgage is put in place when you take out a new mortgage to pay off an old mortgage from Barclays or another provider.

Do you want a fixed or tracker mortgage?

You need to consider what type of mortgage structure suits you best.

Fixed rate versus tracker mortgages

The interest rate charged on a fixed-rate mortgage does not change from month to month. For tracker rate mortgages the interest you pay is linked to the Bank of England Base Rate.

Mix and match mortgages

Depending on your circumstances, you might prefer a mortgage that combines both fixed and tracker rates. Throughout the term of your mix and match mortgage, you’ll pay the same amount each month on the fixed part, and be able to make early repayments on the tracker part.

What repayment option do you require?

Repayment versus interest only

The monthly payments of a repayment mortgage cover the interest and reduce the amount of capital borrowed. The mortgage will be paid off in full when the term ends.

An interest-only mortgage has lower monthly payments because it does not repay the capital borrowed. Your monthly payments only cover the interest on the mortgage. At the end of the term, you’ll still owe the amount you originally borrowed, and you’ll have to repay it in full.

The information you'll need to provide

You must tell your mortgage adviser about your financial situation and the property you want to buy. They will need to know, amongst other information, the following:

  • If you have found a property you want to buy
  • If you are a first-time buyer or have purchased before
  • If you have proof of income and a credit history.

How much can you borrow?

How much you can borrow depends on the value of the property, your income and expenditure and the size of the deposit you can put down.

Please note

Your home may be repossessed if you do not keep up repayments on your mortgage.
Your investment property may be repossessed or a receiver of rent appointed if you do not keep up payments on your mortgage.

Remember that where the mortgage is denominated in a currency other than your home currency, changes in the exchange rate may increase the equivalent value of the debt in terms of your home currency.