What is Stamp Duty?

“Stamp Duty” or “Stamp Duty Land Tax” (SDLT), as it’s now properly known, is a tax charged on land and property transactions in the UK.

What is a mortgage?

A mortgage is a loan that you use to buy a house. The length, or term, of the loan can vary; the most common being over 25 years. You can choose how you repay your mortgage and how the interest is calculated.

How do you choose a mortgage?

Make sure you shop around, this will ensure that you get a good deal, and one that’s tailored to your needs. It’s a good idea to get some advice by visiting different mortgage lenders or even an independent financial adviser.

How does a mortgage work?

The lender will lend a percentage of the property’s value. This means that you will need a deposit for the rest. The amount you can borrow is based on your salary. If you are both working, a lender will usually take into account both your salaries.

What is a repayment mortgage?

This is the most common type of mortgage. You pay off the interest and some of the capital each month. At the end of the term, the mortgage is paid off.

What is an interest-only mortgage?

With this mortgage you are paying off the interest element only each month. At the end of the term, the outstanding balance must be paid off.

What is a tracker mortgage?

This type of mortgage follows the Bank of England’s base interest rate. When the rate is low, you pay less and more when it is higher.

What is an offset mortgage?

This type of mortgage enables you to offset your savings account balance against your mortgage. This means that the interest that you pay on your mortgage is reduced – you pay interest on your mortgage amount minus your amount in savings.

What is a variable interest rate mortgage?

This means that your payment amount will go up or down depending on the interest rate.

What is a fixed interest rate mortgage?

This means that your payment amount will be fixed for a certain number of years.

How much can I borrow?

The amount you can borrow is based on how much you earn – if you’re buying with a partner, your combined salaries are usually taken into account.

Why Mill Bay

” Thank you so much for everything you have done and continue to do for us it has made everything so much easier. ”
— Ashford Park, Crundale

Have a question?

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the MillBay team today. Call us on 0333 7000 733.