How Does Mortgage Interest Work?

Mortgage interest is the money you must pay back on top of the amount you’ve borrowed. The higher the rate the more interest you must repay, and the bigger your monthly payments will be.

Usually, the best rates are reserved for buyers with a 40% minimum deposit, while buyers with a 10% deposit will probably have to pay a higher interest rate.

How does my Credit Score affect me getting a mortgage?

Your Credit Score and history has a big impact on who will give you a mortgage.  Lenders use your credit report to get information on how reliable you have been at paying back debts in the past.

Your credit history may also impact your mortgage rate, as the types of mortgage you are offered will be affected by how responsible you have been with borrowing in the past. Special introductory rates or other attractive mortgage offers might only be available to people whose credit history meets certain criteria.  See our blog on why your Credit Score matters here Your Credit Score and Mortgages – Why It Matters! (milesrhodes.com)

Are mortgage payments tax deductible?

If you rent out a property, you’ll need to pay tax on any profit you make. However, while mortgage payments aren’t entirely tax deductible, the interest part of it is if you hold the mortgage in a limited company. But only while the property is being used for rental purposes.

Many people have credit issues that prevent them obtaining a mortgage from High Street lenders, however we have many years of experience in dealing with such issues and are happy to help arrange your mortgage. There are many specialist lenders that will potentially lend to clients with credit problems but most of these will only accept business from an accredited broker such as ourselves.  We are experts in arranging mortgages for clients with adverse credit and our Miles Rhodes advisers have a wealth of knowledge in this area.