MORTGAGES

Mortgage in Principle: What It Is and Why You Need One

24 Sep 20265 min readBy the Xchange Team
Quick answerHere's the honest answer: the headline rate isn't the whole story. Your deposit, the fees and the total cost over the deal period matter just as much. Get those right and you could save thousands. Below we explain the numbers that actually move the needle.

The numbers that actually matter

Forget the headline rate for a second. What really decides the cost of your mortgage is your deposit, the fees, and the total you'll pay over the fixed period. A low rate with a hefty fee can easily cost more than a slightly higher rate with none.

How your deposit size tends to affect your rate
DepositLoan-to-valueRate band
5%95% LTVHighest
10%90% LTVHigher
15%85% LTVModerate
25%+75% LTV or lessBest available

How to get the best deal

  • Check and tidy up your credit file months before you apply.
  • Save a bigger deposit if you possibly can — it unlocks sharper rates.
  • Use a whole-of-market broker, not just your own bank.
  • Always compare the total cost, fees included.

Once you know your budget, it pays to see what's out there — browse our current listings to ground your numbers in reality.

The mistakes that cost people the most

  • Chasing the highest valuation. A big number on day one means nothing if it doesn't sell.
  • Skimping on presentation. First impressions are made in seconds, online and in person.
  • Letting things drift. Most deals that collapse do so because nobody was driving them forward.
  • Going it alone. The right local agent more than pays for themselves.

Frequently asked questions

How much deposit do I need?
Most lenders want at least 5 to 10% of the price, but a bigger deposit unlocks better rates and lower monthly payments.
How long does buying a house take?
Usually 12 to 16 weeks from offer accepted to completion, depending on the chain, your mortgage and how quickly the legal work moves.
What's the first thing I should do?
Get a mortgage agreed in principle. It tells you your real budget and makes sellers take your offer seriously.

Thinking of making a move?

Whether you're selling, buying or just curious what your home is worth, our local team is here to help across Nuneaton, Bedworth, Hinckley and across the Midlands.