A mortgage illustration, formally known as a European Standardised Information Sheet (ESIS), is a document that lenders and brokers are required to provide before you commit to a mortgage product. It sets out the key details of the mortgage in a standard format, making it easier to compare different offers.
The illustration includes the interest rate, monthly repayments, the total amount payable over the full term, all associated fees, and what happens if you miss payments or want to leave the deal early. It also shows how your repayments would change if interest rates rose.
You should receive a mortgage illustration after an initial discussion with a broker or lender, well before you submit a full application. It is a useful tool for comparing products side by side and understanding the true cost of a mortgage beyond just the headline rate.
Your broker provides you with mortgage illustrations from three different lenders. By comparing the total cost over the deal period including fees, you discover that the product with the lowest interest rate is not actually the cheapest overall because of its high arrangement fee.
Key Points
- Legally required document provided before you commit to a mortgage
- Uses a standardised format (ESIS) so you can compare products easily
- Shows the interest rate, monthly repayments, total cost, and all fees
- Includes information about early repayment charges
- Not a binding offer from the lender or a commitment from you