How to read a mortgage quote
Rate, discount margin, fees, insurance, term surcharge, and execution date.
A useful quote states the execution-month rate, the base rate and permanent discount margin, the origination and guarantee fees, insurance additions, any LTV and term surcharges, and the execution date and validity — read all of these, not just the rate.
Key points
- Check the execution-month rate and whether the discount margin is permanent.
- Read the origination and guarantee fees and insurance additions.
- Note any LTV and term surcharges and the execution date and validity.
- Ask for the fields the report flags as requiring a direct dated quotation.
The fields to read
Ask each lender for a dated document showing: the execution-month rate; the base/reference rate and the permanent discount margin; any LTV surcharge, term surcharge, and post-fixed-period margin; the rate-reset timing and five-year/125% treatment; the origination fee, guarantee fee, appraisal fee, registration estimate, and early-repayment fee; the standard life insurance and any cancer/critical-illness or pair-loan additions; and the process details — preapproval and final-approval documents, decision time, validity period, rate-lock rules, online or branch execution, English support, and any required bank/service bundles. These are exactly the fields to compare across lenders.
Fields that require a direct quotation
Some fields cannot be read off an advertisement and require a direct dated quotation: the effective all-fee APR, the real minimum income, the employment-history minimum, non-PR eligibility, the appraisal methodology, and the actual obtainable rate — which only final underwriting and execution determine. Treat these as "quotation required," not inferred, and do not rely on search snippets or old pages for a current rate.
Key points to carry away: Check the execution-month rate and whether the discount margin is permanent; Read the origination and guarantee fees and insurance additions; Note any LTV and term surcharges and the execution date and validity; Ask for the fields the report flags as requiring a direct dated quotation. Use the linked guides and calculators for the full decision, and confirm anything material with the lender, a licensed broker, a judicial scrivener, or a tax accountant before you act.
Who this is for
- Borrowers comparing quotes
- Anyone requesting a written illustration
What this is not
- A specific rate quote
- Do not rely on search snippets or old pages for a current rate; save the page on your application and execution dates.
Frequently asked questions
How do I compare lenders fairly?
Use the same execution date, LTV, term, insurance, fees, and holding period for every quote.
How do I find the cheapest mortgage?
Compare the all-in cost — execution rate, fees, insurance, and early-repayment costs — over your holding period, not the headline rate.
What is the total cost of borrowing?
Interest plus origination or guarantee fees, insurance, registration, appraisal, account conditions, and early-repayment costs over your holding period.