How does a whole-of-market mortgage broker help me?
A whole-of-market broker compares mortgages across the UK lending market rather than a single lender, then recommends the deals that fit your circumstances — including intermediary-only products that lenders do not offer directly to borrowers. You deal with one adviser who handles the application from decision in principle through to completion.
Will comparing mortgages affect my credit score?
No. Comparing deals and getting an initial assessment leaves no footprint on your credit file. A credit search is only carried out when you formally apply for a decision in principle, and your adviser will always tell you before that happens.
What is a broker-only or intermediary-exclusive mortgage?
Many UK lenders release some products only through mortgage brokers and will not offer them to you if you approach them directly. These intermediary-exclusive deals are often more competitive than the same lender’s direct range, which is one reason it pays to compare the whole market rather than your own bank.
How much can I borrow for a mortgage?
As a rough guide, lenders often lend around 4 to 4.5 times your annual income, but the real figure depends on your income type, outgoings, credit commitments, the deposit and the lender’s own affordability model — which vary widely. An adviser can give you a realistic borrowing figure once they understand your situation.
How much deposit do I need to buy a home?
Most lenders want a deposit of at least 5% of the property value, though rates improve significantly at 10%, 15% and 25%. A larger deposit lowers your loan-to-value, which is the single biggest factor in the interest rate you are offered.
Can I get a mortgage if I am self-employed?
Yes. Lenders assess self-employed income differently — some work from one year of accounts, others average two or three years, and some use retained profit for company directors. Because criteria vary so much, a broker can match you to the lenders most likely to accept how your income is structured.
Can I get a mortgage with bad credit?
Often, yes. Defaults, CCJs, missed payments and even discharged bankruptcies do not automatically rule out a mortgage. Specialist lenders price according to how recent and how severe the adverse credit is, so the right lender for an applicant with a clean file is rarely the right one for someone with past issues.
What does a mortgage broker charge?
Any fee is set out in writing and disclosed in full before any work begins. Depending on the case, advice may be paid for by a fixed fee, by commission the lender pays on completion, or a combination — whichever applies is confirmed to you up front so there are no surprises.
Are buy-to-let and commercial mortgages regulated?
Most are not. The Financial Conduct Authority regulates residential mortgages and a narrow band of consumer buy-to-let and regulated bridging. Most buy-to-let, all commercial mortgages and development finance fall outside FCA regulation, which means the Financial Ombudsman Service may not be available for those products.
How long does a mortgage application take?
A decision in principle can often be issued within a day, while a full application through to a formal mortgage offer typically takes two to six weeks depending on the lender, the valuation and how quickly documents are supplied. Specialist and commercial cases can take longer.
What is loan-to-value (LTV) and why does it matter?
Loan-to-value is the size of your mortgage as a percentage of the property value — a £150,000 mortgage on a £200,000 home is 75% LTV. It is the biggest single driver of your interest rate: the lower your LTV, the lower the rate lenders will offer, with the best deals usually appearing at 60% and below.
Should I use a mortgage broker or go direct to my bank?
Your bank can only offer you its own products. A whole-of-market broker compares the entire market and can access intermediary-exclusive deals that lenders never publish to the public, then matches you to the lender most likely to accept your circumstances — which is particularly valuable if your situation is not completely standard.
Can I remortgage before my current deal ends?
Usually yes, but leaving a fixed or discounted deal early often triggers an early repayment charge. Many people line up a remortgage in the last three to six months of their deal so the new rate starts the day the old one ends, avoiding both the charge and a spell on the lender’s higher standard variable rate.
What is the difference between a fixed and a tracker rate?
A fixed rate stays the same for a set period, so your payments are predictable regardless of what the Bank of England does. A tracker moves up and down in line with the Bank of England base rate, so payments can fall but can also rise. Which suits you depends on your appetite for that uncertainty.
Can I get a mortgage as a first-time landlord?
Yes. Some lenders require you to already own a home, or to have prior landlord experience, but others accept genuine first-time landlords at standard rates. Buy-to-let lending is assessed largely on the expected rental income rather than your salary, so the rent the property can achieve is central to how much you can borrow.
Is a limited company better for buy-to-let?
It can be, particularly for higher-rate taxpayers, because a company can treat mortgage interest as a business expense whereas individual landlords cannot fully offset it. Company mortgage rates are usually higher, so whether it works out cheaper depends on your tax position and how long you hold the property — a question for an accountant alongside your broker.
What is a commercial mortgage and how much deposit do I need?
A commercial mortgage funds premises your business trades from or holds as an investment. Deposits are typically 25% to 30% of the value, though strong trading businesses can borrow more. Lenders assess the strength of the business and, for investments, the tenant and lease as much as the property itself.
What is bridging finance used for?
Bridging is short-term finance for situations a standard mortgage cannot cover in time — buying at auction, breaking a chain, or funding a refurbishment before refinancing. It is faster and more flexible than a term mortgage but more expensive, and lenders will only proceed where there is a clear, credible way to repay it.
Do I need a mortgage in principle before I make an offer?
It is strongly advised. A decision in principle shows estate agents and sellers that a lender is willing to lend you the amount you are offering, which makes your offer far more credible. It involves only a soft check, so it does not affect your credit score.
What documents will I need for a mortgage application?
Typically proof of identity and address, the last three months of payslips and bank statements, and your latest P60 if you are employed. Self-employed applicants usually need one to three years of accounts or SA302 tax calculations. Your adviser will give you an exact checklist for the lender you apply to before you start.