Mortgages Guide | Mortgage Help Product Information | Mortgage Knowledge Test


Before committing to a mortgage, it is wise to be in a position where you fully understand the product and know exactly what you are buying. Here is a list of questions to ask about yourself and the mortgage, which will help you identify any areas you have not yet thought about:

Type of mortgage:

  • Have you chosen a method of repaying the mortgage?
  • Is this mortgage available with your chosen repayment vehicle?
  • What is the starting headline interest rate?
  • What is the APR?
  • What will be the total interest repayments?
  • How much will your monthly payments be?
  • Is this mortgage available for the loan-to-value rate that you require?
  • How often is interest calculated on the outstanding balance?
  • Do you fully understand the type of introductory offer, if there is one?
  • How long does the introductory period run for?
  • What will happen to the rate after the introductory period is over?
  • How will this affect your repayments?
  • How often is the rate reviewed and amended for changes in the base rate?
  • Does the lender use some other measure to decide when to alter its rates?
  • Do you have a strong opinion regarding what is likely to happen to rates in future years?
  • How will your mortgage be affected by these changes?
  • Will you be able to cope if the rate rises and your repayment rises with it?
  • This type of mortgage may fit your circumstances today, but are your circumstances likely to change?
  • If so, is the mortgage flexible enough to cope with the changes?

Product features:

  • Will you have to pay an application fee?
  • If so, how much?
  • Will you have to pay an arrangement fee?
  • If so, how much?
  • What are the MIG fee thresholds?
  • Will you have to pay it?
  • If you must pay, how much will it be?
  • Can you add it to the loan?
  • How much more would you have to save to cross the next MIG threshold?
  • How long does the redemption penalty period run for?
  • How much will you be penalised if you repay your loan within this time?
  • Does the penalty period last longer than the introductory offer?
  • Do the penalties apply to part repayments?
  • Is the product portable?
  • Can you take payment holidays?
  • Is it possible to increase or reduce your payments?
  • How often can this be done?
  • Can you pay off additional lump sums?
  • Is there a minimum amount?
  • When are these payments credited to your account?
  • Are you allowed to extend or reduce the term of the repayment?
  • Is there a facility to obtain further advances?
  • When can you start doing this?
  • Are there any conditions attached?
  • What will the rate of interest be?
  • Is there a full current account facility?
  • Are any ancillary products required?
  • Can you choose your own provider or do you have to take the product supplied by the lender?
  • Is it a CAT marked mortgage?
  • What incentives are there with the mortgage?
  • Is there any cashback?

The lender:

  • Will they lend you as much as you need?
  • Does the lender comply with the mortgage code?
  • Is the type of property you are buying acceptable for this mortgage?
  • Will you meet their standard lending criteria?
  • Will you need a guarantor?
  • Are the payment terms flexible enough?
  • Are you happy with their policy on how they handle late or missed payments?
  • Have you seen the schedule of other charges?
  • Do you understand what they all are and when you would be required to pay them?
  • How long will it take to process your application?
  • Are the advisers or customer service staff efficient and helpful?
  • Is the sales and product literature clear and easy to understand?

If you can't answer all of these questions, then you probably need to either do a little more reading of this site, or investigate the product or lender some more.