Mortgages Explained

What is a mortgage?

A mortgage is a loan used to buy a home or property. Most people borrow money from a bank or lender and agree to pay it back in monthly instalments over a long period—typically 25 years or more.

You’ll need a deposit (a lump sum paid upfront), and the rest is usually covered by the mortgage. Because the loan is secured against the property, the lender retains a legal claim to it until the mortgage is fully repaid.

How much deposit do I need?

While it varies between lenders, most require a deposit of at least 10% of the property’s value. Some may ask for more, and depending on your circumstances.

This ratio—how much you borrow versus how much you put down—is known as the Loan-to-Value (LTV). A higher deposit = lower LTV = more attractive to lenders, which often means access to lower interest rates.

How do you get a mortgage?

At Lenderhive, we’ve reimagined what a broker can be. By connecting directly to your digital data—like income, ID, and affordability—we streamline the journey, reduce the paperwork, and surface mortgage options that suit you.

Less PDFs. Less forms. Just smart, smooth onboarding and intelligent comparisons.

Mortgage Repayment Options

Repayment Mortgages These are the most common. You repay both the loan and the interest monthly. By the end of the term, your mortgage is fully paid off.

Interest-Only Mortgages Your payments cover just the interest. The loan itself is repaid at the end of the term, often using investments or savings. Commonly used for buy-to-let properties.

Mortgage Rate Types

Fixed Rate You lock in your interest rate for a period (e.g. 2, 3, or 5 years). Great for budgeting and knowing exactly what you’ll pay.

Variable Rate Your rate can change over time—based on your lender’s standard variable rate or the Bank of England base rate.

What Happens After the Deal Ends?

When your fixed or discounted deal ends, you’ll usually roll onto your lender’s Standard Variable Rate (SVR)—which is often higher. That’s why many people remortgage before this happens, switching to a better deal.

Lenderhive can alert you before your deal ends and help you switch to a better one with minimal hassle.

Other Types of Mortgages

Joint Mortgages Buy a home with someone else (a partner, friend, or family). You’re both responsible for the repayments.

Buy-to-Let Mortgages Designed for landlords buying property to rent out. Typically interest-only.

Guarantor Mortgages Someone (usually a family member) guarantees your mortgage, agreeing to cover repayments if needed.

Offset Mortgages Link your mortgage to a savings account. Your savings reduce the balance you’re charged interest on.

Specialist Mortgages For those with unique circumstances—such as adverse credit, non-traditional income, or self-employment. Lenderhive can help navigate these options too.

Why Choose Lenderhive?

We’re not your typical broker. We’re a digital-first mortgage platform that makes things smoother, smarter, and faster.

• 🧾 Streamlined onboarding using real-time data
• 🌐 Whole-of-market mortgage access
• 🧍 Personal support from real humans
• 🌱 Built-in green mortgage matching

We remove friction and empower better decisions.

Your mortgage is one of the biggest financial decisions you’ll ever make—but it doesn’t need to be stressful.

With Lenderhive, you get clarity, control, and convenience. Explore your options, understand the process, and move forward with confidence.

Start your mortgage journey the modern way.