Getting a mortgage is one of the biggest financial steps in buying a property, so it is worth understanding the basics before you start house hunting.

Types of mortgage

Most buyers choose a fixed rate mortgage, where your repayments stay the same for an agreed period, typically two, three or five years. A tracker mortgage moves with the Bank of England base rate, so payments can rise or fall. Your broker or lender can help you weigh up which suits your circumstances.

What lenders look for

Lenders assess your income, outgoings and credit history to work out how much you can borrow. A larger deposit, usually at least 5 to 10 per cent of the purchase price, tends to open up better rates. Keep your credit file in good shape and avoid taking on new debt in the months before you apply.

Getting a mortgage in principle

A mortgage in principle, sometimes called an agreement in principle, gives you an estimate of how much a lender might offer, based on a quick check of your finances. It is not a guarantee, but it shows estate agents and sellers that you are a serious buyer.

Next steps

Once you have found a property, your lender will arrange a valuation and, if you wish, a fuller survey. From there, your solicitor or conveyancer takes care of the legal side, working towards completion. If you are unsure where to start, speak to a mortgage broker who can compare deals across the market on your behalf.