What is a mortgage?

A mortgage is a type of loan that you take out to buy a property. As with any loan, you borrow money from a bank, building society or a specialist lender and repay it with interest over a period of time.

With mortgages, however, it is important to remember that the loan is secured against the property, meaning you could risk losing your home if you fail to keep up repayments on your mortgage.

If you're looking to take out a mortgage for the first time you need to make sure that you:

  • find the right mortgage to suit your requirements
  • work out a budget so that you only borrow what you can comfortably afford
  • plan for any future changes – e.g. drop in income, loss of job, hike in interest rates, etc.

Mortgage Calculator

Equity Loan Mortgage Calculator

Whether you're a first-time buyer or already a property owner you could buy a new home with a small deposit of 5%, heres how.

How Help to Buy Equity Loans Work

  • First time buyers and those already on the property ladder can apply.
  • To qualify a 5% deposit is required.
  • A 75% mortgage must be secured from your bank or building society.
  • The remaining 20% of the property’s value is funded by an equity loan provided by the Government.
  • House prices can’t be more than £600,000 in England and £300,000 in Wales.



House Price





Min (5% of house price)£2,500


Max (30% of house price)£15,000

Interest Rate





Min25 Years

30 Years

Max35 Years

Without Help to Buy

Your deposit£2,5005%
Your mortgage£47,50095%
Monthly Payment£213.30 

With Help to Buy

Your deposit£2,5005%
Help to Buy Loan£10,00020%
Your mortgage£37,50075%
Monthly Payment£168.39 

This calculator is provided to give you basic guidance only. This information is computer-generated and relies on certain assumptions. It has only been designed to give a useful general indication of costs. Its important you always get a specific quote from the lender and double-check the price yourself before acting on the information. We cannot accept responsibility for any errorsand recommend that you obtain exact figures from a specific lender before committing to any mortgage.

Mortgage News