Thinking about buying a house or refinancing? A mortgage can feel confusing, but you don’t have to guess. In this guide we break down the key numbers, show where you can cut costs, and point you to the most useful articles on the topic.
Most people focus on the interest rate, but the total cost of a mortgage includes more than that. You’ll pay principal, interest, and often fees for arrangement, valuation, and early repayment. Knowing each piece helps you compare offers side‑by‑side without getting fooled by low headline rates.
Take a typical 30‑year loan of £100,000 at a 7% rate. Over the life of the loan you’ll pay around £151,000 in interest, meaning the total repayment is about £251,000. That figure can jump if you add fees or choose a shorter term, so it’s worth plugging your own numbers into a mortgage calculator.
Remortgaging can shrink those numbers. By swapping to a lower rate or a longer term you lower your monthly payment, and sometimes even reduce the amount of interest you’ll ever pay. The key is to watch for early‑repayment penalties – they can erase the savings if you switch too soon.
When picking a term, ask yourself how long you plan to stay in the property. A 15‑year mortgage costs more each month but saves you a lot of interest. A 30‑year loan spreads the cost out, making monthly payments easier but increasing total interest. Your budget and future plans should drive the decision, not just the advertised rate.
A common mistake is assuming the lowest rate is always best. Some lenders offer “teaser” rates that jump after a few years. Always read the fine print and calculate the “annual percentage rate” (APR) to see the true cost across the whole term.
We’ve written several pieces that dive deeper into the numbers and strategies you’ll need:
Start with the article that matches your current situation, then move on to the next step. Each piece is written in plain English, so you can act on the advice without a finance degree.
Bottom line: a mortgage is a long‑term commitment, but with the right numbers and a bit of homework you can keep it affordable. Use the tools and guides above to compare offers, calculate real costs, and decide whether staying put, refinancing, or even releasing equity is the smartest move for you.
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