What Is a Mortgage Illustration?
When applying for a mortgage in the UK, your lender or broker will provide a Mortgage Illustration—also known as an ESIS (European Standardised Information Sheet). This document outlines all the key details of your mortgage offer in a clear, standard format.
It may not look exciting, but this document is absolutely critical. Here’s why.
1. Understand the True Cost of Your Mortgage
The illustration shows your monthly payments, interest rate, and total amount payable over the term. This helps you understand the full cost—not just the headline rate.
2. Know What Fees You’re Paying
Arrangement fees, valuation fees, and legal costs are all listed here. Some fees are added to the loan, others are paid upfront. Reading this section ensures you know exactly what you’re being charged.
3. Be Aware of Rate Changes
Many mortgage deals offer a fixed or discounted rate for a period, then revert to the Standard Variable Rate (SVR). Your illustration shows when that happens and how your monthly payments could change.
4. Check for Early Repayment Charges (ERCs)
Want to switch deals early or pay off your mortgage sooner? The illustration outlines any penalties for overpaying or exiting early. These charges can be significant if you’re not aware of them.
5. Confirm What You Agreed With Your Broker
The mortgage illustration is tailored to your circumstances. It confirms your loan amount, term, repayment type, and rate. It should reflect everything you discussed—reading it ensures there are no mistakes or surprises.
Why This Matters
Your mortgage is likely the biggest financial commitment you’ll ever make. Reading the mortgage illustration gives you clarity, control, and the opportunity to ask questions before it’s too late.
As a trusted mortgage broker, I always review the illustration with my clients and answer any questions. It’s part of making sure you feel confident and informed—not just approved.
Need help understanding your mortgage illustration?
Get in touch and I’ll talk you through it—no jargon, no pressure.
Your Home May Be Repossessed If You Do Not Keep Up With Your Repayments.
Emily's Mortgage Services LTD 