What is a Mortgage Illustration?

Mortgage Illustration Newcastle

A mortgage illustration is something that you everyone gets at the start of their mortgage process. Although, what is a mortgage illustration? Let’s make this sound less complicated, as they are actually really simple!

A mortgage illustration is simply a document that outlines every detail of your mortgage deal. You will receive one from your mortgage advisor in Newcastle when they recommend you a product.

As a mortgage broker in Newcastle, we provide this service for free, it is only until you move forward with us and your deal when you’ll be charged:

  1. When you book your free mortgage appointment online, you will be assigned a mortgage advisor in Newcastle that specialises in your situation.
  2. Their job is to search 1000s of mortgage deals to try and pick out the best one for you that matches your personal and financial circumstances.
  3. When providing a mortgage recommendation, we will also present a mortgage illustration outlining the whole deal.
  4. If you are happy with our recommendation and want to continue with us, we can start to prepare your mortgage application.

Your mortgage advisor in Newcastle will run through all of these steps with you during your free mortgage appointment. We have been helping first time buyers in Newcastle, and we know how stressful the process can seem; we are here to break it down and make sure that you are comfortable at all times.

Watch our quick video on “what is a mortgage illustration” by MoneymanTV. For lots of mortgage tips and explanations, check out our YouTube channel. Please subscribe to the channel whilst you are there!

What is included in a mortgage illustration?

A mortgage illustration outlines the main details (lender, length, etc.,), costs of taking out the product, monthly repayments, legal fees and sometimes valuation fees.

Main details

You will need to know the basics of your mortgage deal and what comes with it. Your mortgage illustration will outline the length of your fixed contract, who you are taking out the product with and the interest rate.

Costs of taking out a product

Most lenders will charge you for taking out one of their mortgages. If a fee comes with your mortgage product this will be included in your mortgage illustration. This cost can vary between products

Monthly repayments

How much your mortgage is going to cost you each month will be included in your mortgage illustration. These costs will be calculated by your total mortgage amount, interest rate and fixed term length.

Every mortgage is different though! Remember that if you are on a variable rate of interest, you may not stick to the same payment each month like a fixed-rate.

Legal fees

Legal fees include solicitor services. As a mortgage broker in Newcastle, we will run through every legal cost before advancing you further through the process.

Valuation fees

Before you take a mortgage out on a property, you will need to arrange a property survey on it. Some properties may need a more in-depth property survey which cost more, whereas, other may not. These details may be included within your mortgage illustration.

Do I have to agree to your mortgage recommendation?

No, remember that a mortgage recommendation is simply what the advisor thinks is best for you and your current personal and financial circumstances. You do not have to continue with the deal if you do not wish to do so.

On the other hand, your mortgage advisor in Newcastle will have carefully selected this product for you and would have tried to find a deal tailored to your individual situation.

If you choose to part ways with us and want to go elsewhere, unfortunately, you will have to lose this deal too.

Does a mortgage illustration guarantee me a mortgage?

Unfortunately, you can never guarantee someone a mortgage. A mortgage illustration is just an outline of the deal being offered to you.

If you go ahead with this deal, you will still have to provide documents to support your income, source of deposit and affordability as of yet.

Is a mortgage illustration the same as an agreement in principle?

Before getting a mortgage illustration, you will get an agreement in principle (AIP). An AIP is a written statement saying that a lender will let you borrow from them in the principle of you being able to evidence your income, source of deposit, affordability etc. This is not a mortgage illustration.

You should know that AIPs also cannot guarantee a mortgage either.

Speak to a Mortgage Broker in Newcastle

If you are a First time buyer in Newcastle or moving home, we are here to help! We know that starting your mortgage process can be difficult, especially if it is your first time!

Following your free mortgage appointment, you will receive a mortgage illustration once your mortgage advisor in Newcastle has found an appropriate deal. Book online and choose a date and time for your mortgage appointment.


Last edited 15/08/2022

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