{"id":60631,"date":"2025-08-10T15:33:54","date_gmt":"2025-08-10T15:33:54","guid":{"rendered":"https:\/\/kede.com.br\/news\/what-is-a-mortgage-and-how-is-it-affected-by-interest-rates\/"},"modified":"2025-08-10T15:33:55","modified_gmt":"2025-08-10T15:33:55","slug":"what-is-a-mortgage-and-how-is-it-affected-by-interest-rates","status":"publish","type":"post","link":"https:\/\/kede.com.br\/news\/what-is-a-mortgage-and-how-is-it-affected-by-interest-rates\/","title":{"rendered":"What is a mortgage and how is it affected by interest rates?"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div data-component=\"text-block\">\n<p>You have to apply for a mortgage (more on who can help you do that later). A mortgage is offered by a lender, usually a bank or building society, and they decide whether to lend you the money based on a few key things.<\/p>\n<p><strong>How much you earn<\/strong><\/p>\n<p>First, the size of the mortgage you can have (which determines what price of house you can buy) will depend on how much you earn. A lender tends to let you borrow 2.5 times your <span data-testid=\"inline-glossary-term-wrapper\" class=\"ssrcss-1otbeo0-StyledGlossaryTerm e1k79ohp2\"><button aria-haspopup=\"dialog\" aria-label=\"salary glossary\" tabindex=\"0\" type=\"button\" aria-expanded=\"false\" class=\"ssrcss-1y9w8i6-StyledGlossaryTermButton e1k79ohp0\"><dfn>salary<\/dfn><span class=\"ssrcss-4l8rpx-IconWrapper e1k79ohp1\"><svg viewbox=\"0 0 32 32\" width=\"1em\" height=\"1em\" class=\"ssrcss-xi5oyi-StyledIcon e161cein1\" focusable=\"false\" aria-hidden=\"true\"><path d=\"M16 31c8.5 0 15-6.5 15-15S24.5 1 16 1 1 7.5 1 16s6.5 15 15 15m-2.2-5.5V12.7h4.4v12.9h-4.4zM16 10c-1.7 0-2.7-.9-2.7-2.4s1-2.4 2.7-2.4 2.7.9 2.7 2.4-1 2.4-2.7 2.4\"\/><\/svg><\/span><\/button><span hidden=\"\" role=\"definition\" data-right-aligned=\"false\" class=\"ssrcss-1tskfu2-PanelComponentWrapper e10dlypf0\"><span class=\"ssrcss-jb6c73-PanelContainer e10dlypf5\"><span class=\"ssrcss-1xwy5rn-CloseButtonWrapper e10dlypf2\"><button width=\"content-length\" type=\"button\" class=\"ssrcss-1mmmhqq-Button eoocusk1\"><span data-testid=\"actions:close\" class=\"ssrcss-1a1fy59-IconWrapper eoocusk0\"><svg viewbox=\"0 0 32 32\" width=\"1em\" height=\"1em\" class=\"ssrcss-xi5oyi-StyledIcon e161cein1\" focusable=\"false\" aria-hidden=\"true\"><path d=\"m30 4.6-2.8-2.8L2 27.4l2.8 2.8zM4.8 1.8 1.9 4.7l25.2 25.5 2.9-2.9z\"\/><\/svg><span class=\"visually-hidden ssrcss-1f39n02-VisuallyHidden e16en2lz0\">close<\/span><\/span><\/button><\/span><span class=\"ssrcss-hp2npr-PanelContentWrapper e10dlypf3\"><span aria-hidden=\"true\" class=\"ssrcss-1ef292g-TitleWrapper e10dlypf1\"><span class=\"ssrcss-1rofw2e-TitleText e10dlypf4\">Salary<\/span><\/span><span>A salary is a fixed, regular payment, typically paid by an employer on a monthly basis, to an employee for their work<\/span><\/span><\/span><\/span><\/span>.<\/p>\n<p>If you are buying a property with someone else, the size of the mortgage will be based on both your salaries. The lender normally uses the following calculation to work out how much to offer:<\/p>\n<p><strong>2.5 times the largest salary plus 1 times the smaller salary.<\/strong> This is called <a href=\"https:\/\/www.bbc.co.uk\/bitesize\/guides\/z8rhfrd\/revision\/2\" class=\"ssrcss-1w74xcy-InlineLink e1kn3p7n0\">the affordability calculator<\/a> and tells the lender whether you can afford to buy the house.<\/p>\n<p><strong>How much money you have saved up<\/strong><\/p>\n<p>When you apply for a mortgage, you\u2019ll have to put down a deposit, which is a chunk of money that you pay to the lender upfront. The size of your deposit is what determines the <strong>loan-to-value ratio<\/strong> of your mortgage. In simple terms, the bigger the deposit, the less money you need to borrow from a lender. This means your loan-to-value ratio will be lower because they don&#8217;t need to lend you as much money.<\/p>\n<p><em>Say the house you wanted to buy was worth <strong>\u00a3100,000<\/strong>, and you\u2019d saved up <strong>10%<\/strong> of the total house price.<\/em><\/p>\n<p><em>That means your deposit would be <strong>\u00a310,000<\/strong> and you\u2019d need a <strong>90%<\/strong> loan-to-value mortgage to make up the rest of the cost (\u00a390,000). Most lenders will require a borrower to have a deposit size of at least 5% of the property\u2019s value.<\/em><\/p>\n<p>Generally, the bigger the deposit, the less risky it is for the lender, so saving for a bigger deposit and a lower loan-to-value mortgage can mean better <strong>interest<\/strong> deals.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/bitesize\/articles\/zbn36rd?at_medium=RSS&#038;at_campaign=rss\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You have to apply for a mortgage (more on who can help you do that later). A mortgage is offered by a lender, usually a bank or building society, and they decide whether to lend you the money based on a few key things. How much you earn First, the size of the mortgage you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":60632,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[61],"tags":[3593,2448,3973,3105],"_links":{"self":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts\/60631"}],"collection":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/comments?post=60631"}],"version-history":[{"count":1,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts\/60631\/revisions"}],"predecessor-version":[{"id":60633,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/posts\/60631\/revisions\/60633"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/media\/60632"}],"wp:attachment":[{"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/media?parent=60631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/categories?post=60631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kede.com.br\/news\/wp-json\/wp\/v2\/tags?post=60631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}