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Mortgage questions, answered

Everything people ask us about getting a mortgage — from how much you can borrow to buy-to-let tax, commercial deposits and what happens on completion. If your question is not here, an adviser will answer it directly.

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Using a mortgage broker

What is a mortgage broker?
A mortgage broker is a qualified adviser who compares mortgages across the market on your behalf, recommends the deal that fits your circumstances and manages the application through to completion.
What does "whole of market" mean?
A whole-of-market broker can consider mortgages from across the UK lending market rather than a limited panel, which means more options and a better chance of matching you to a lender that will accept your circumstances.
Why use a broker instead of going direct to my bank?
Your bank can only offer its own products. A broker compares the whole market, including intermediary-exclusive deals that lenders never publish to the public, and knows which lenders are most likely to say yes to your situation.
What is a broker-only or intermediary-exclusive mortgage?
Many lenders release some products only through brokers and will not offer them if you apply directly. These deals are often more competitive than the same lender’s direct range.
Is the advice regulated?
Advice on residential mortgages is regulated by the Financial Conduct Authority. Most buy-to-let, commercial and development finance is not regulated, which we make clear on the relevant pages.
Will you recommend a specific mortgage?
Yes. After understanding your circumstances an adviser recommends the specific product and lender that best fits, and explains why, rather than simply handing you a list.
Do I have to take the mortgage you recommend?
No. A recommendation is advice, not an obligation. You are free to proceed, take time to think, or not go ahead at all.
How do I get started?
Use the enquiry form on any page or request a callback with just your name and number. An adviser will get in touch to understand what you are trying to do.
Do you cover the whole of the UK?
Yes. We arrange mortgages on property across England, Wales, Scotland and Northern Ireland.
Can you help if another broker or my bank has declined me?
Often, yes. A decline by one lender is not a decline by all — different lenders have very different criteria, and a broker’s job is to find the ones that fit.

How much you can borrow

How much can I borrow?
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 and the individual lender’s affordability model.
How do lenders assess affordability?
Lenders look at your income, regular commitments such as loans and childcare, and stress-test whether you could still afford the mortgage if rates rose. Each lender’s model is different.
Can I use bonus or commission income?
Usually yes, though lenders vary in how much they count — some take 100% of a regular bonus, others 50%, and some average it over two years.
Can I include a second applicant’s income?
Yes. A joint application combines both incomes, which typically increases how much you can borrow, though both parties’ credit and commitments are assessed.
Does having children reduce how much I can borrow?
It can. Dependants and childcare costs are treated as regular outgoings in the affordability calculation, which reduces the amount available for a mortgage.
Can I borrow more for home improvements?
Often yes, either as additional borrowing on a remortgage or through a further advance from your existing lender, subject to affordability and the equity in your home.
What is an income multiple?
It is the figure a lender multiplies your income by as a starting point for maximum lending — commonly 4 to 4.5 times, with some lenders going higher for certain professionals or higher earners.
Will existing debts affect my mortgage?
Yes. Loans, credit cards and car finance reduce the income a lender treats as available, so clearing or reducing debts before applying can increase how much you can borrow.
Can I get a mortgage on a low income?
It depends on the property price and your outgoings, but schemes such as shared ownership and lenders with flexible criteria can help lower-income applicants. An adviser can tell you what is realistic.
What is a decision in principle?
A decision in principle is a lender’s indication of how much it may lend you, based on a soft check. It shows sellers you are a serious buyer and does not affect your credit score.

Deposits and loan-to-value

How much deposit do I need?
Most lenders want at least 5% of the property value, but rates improve significantly at 10%, 15% and 25%. A bigger deposit means a lower rate.
What is loan-to-value (LTV)?
LTV is 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 the interest rate you are offered.
Can I use a gifted deposit?
Most lenders accept a deposit gifted by a close family member, provided it is a genuine gift with no repayment expected and the donor confirms they retain no stake in the property.
Can I buy with no deposit?
True no-deposit mortgages are rare and usually require a guarantor or family support such as a charge over their savings or property. Most buyers need at least 5%.
Does a bigger deposit get me a better rate?
Yes. Each time your deposit crosses a threshold — typically 10%, 15%, 25% and 40% — you unlock a lower band of interest rates.
Can I use equity from my current home as the deposit?
Yes. When you move, the equity left after repaying your existing mortgage becomes the deposit on your new property.
What is a 95% mortgage?
A 95% mortgage lets you buy with a 5% deposit. Rates are higher than at lower LTVs, and lenders apply stricter criteria, but it makes buying possible with less saved.
Do I need a bigger deposit for a new-build flat?
Sometimes. Some lenders cap the LTV on new-build flats, often requiring a 15% to 25% deposit, because of how they view the resale risk.

Credit and eligibility

Will comparing mortgages affect my credit score?
No. Comparing deals and getting an assessment leaves no footprint. A credit search only happens when you formally apply for a decision in principle, and we tell you before that point.
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 by how recent and how severe the issues are.
How long do I have to wait after a default?
It varies by lender. Some consider you soon after, at a higher rate, while mainstream lenders may want the default to be several years old or satisfied. A broker can find the ones that fit your timeline.
Can I get a mortgage after a bankruptcy?
Yes, once discharged, though the choice of lenders and rates depends on how long ago it was and your circumstances since. Specialist lenders operate in this space.
Does a low credit score mean I will be declined?
Not necessarily. Lenders weigh your whole profile, not one number, and different lenders score the same applicant differently. It is worth checking before assuming the worst.
How can I improve my chances of approval?
Register on the electoral roll, keep credit commitments up to date, avoid multiple credit applications shortly before applying, and reduce outstanding balances where you can.
Can I get a mortgage on a fixed-term contract?
Yes. Many lenders accept fixed-term or agency contracts, particularly with a track record of continuous work, and some assess contractors on their day rate.
Can I get a mortgage if I have only just started a new job?
Often yes. Some lenders accept a signed employment contract before you have started, and many are comfortable within the first few months, especially in the same field.
Do I need to be a UK citizen?
No. Many lenders accept applicants with settled or pre-settled status or certain visas, and specialist lenders cover expats and foreign nationals, though criteria vary.
Does being on a payday loan affect my mortgage?
Recent payday loan use can concern some lenders even if repaid on time, but not all, so it does not necessarily rule you out — it may narrow the lender choice.

Residential mortgages

What is a residential mortgage?
A residential mortgage is a loan secured against a home you will live in. These are regulated by the Financial Conduct Authority.
What is a first-time buyer mortgage?
It is a residential mortgage for someone buying their first home. Many lenders offer specific first-time buyer deals, and government schemes may also help.
What is the difference between a fixed and a tracker rate?
A fixed rate stays the same for a set period, giving predictable payments. A tracker follows the Bank of England base rate, so payments can fall but also rise.
What happens when my fixed rate ends?
You move onto the lender’s standard variable rate, which is usually higher. Most people remortgage or take a new deal before that happens to avoid the jump.
What is a standard variable rate (SVR)?
The SVR is the lender’s default rate that you revert to when a deal ends. It can change at the lender’s discretion and is typically more expensive than a new deal.
What is an offset mortgage?
An offset mortgage links your savings to your mortgage so you pay interest only on the difference, which can suit higher-rate taxpayers and people with variable income.
What term should I take my mortgage over?
A longer term lowers monthly payments but increases total interest; a shorter term costs more each month but less overall. The right balance depends on affordability and your plans.
Can I overpay my mortgage?
Most deals allow overpayments of up to 10% of the balance each year without penalty. Overpaying reduces the interest you pay and can shorten the term.
What is a joint borrower sole proprietor mortgage?
It lets a family member support the mortgage on their income without going on the property’s title, which can help affordability and may avoid an additional stamp duty charge.
Can I get a mortgage into retirement?
Yes. Later-life and retirement interest-only mortgages let older borrowers continue or take out lending, assessed on pension and other retirement income.
What is equity release?
Equity release lets homeowners, usually over 55, access cash tied up in their home. It is a specialist area with its own advice requirements and long-term implications.
What is shared ownership?
Shared ownership lets you buy a share of a property and pay rent on the rest, with a smaller deposit and mortgage. A smaller group of lenders operate in this market.

Remortgaging

What is a remortgage?
A remortgage is switching your existing mortgage to a new deal, either with your current lender or a different one, usually to get a better rate or borrow more.
When should I start looking to remortgage?
Around three to six months before your current deal ends, so a new rate can start the day the old one finishes and you avoid time on the standard variable rate.
Can I remortgage before my deal ends?
You can, but leaving a fixed or discounted deal early usually triggers an early repayment charge, so it is worth weighing the saving against the penalty.
What is an early repayment charge?
It is a fee for repaying or leaving a deal before the end of its fixed or discounted period, often a percentage of the balance that reduces over time.
Can I borrow more when I remortgage?
Yes, subject to affordability and equity. Capital raising on a remortgage is commonly used for home improvements, a deposit on another property or consolidating debt.
Is a product transfer the same as a remortgage?
No. A product transfer keeps you with your current lender on a new rate and is quicker with less paperwork, but it may not be the cheapest option — it is worth comparing the open market.
Will I need a new valuation to remortgage?
Usually the new lender values the property, often with a quick automated valuation, though sometimes a physical inspection is required.
Can I remortgage to consolidate debts?
It is possible, but securing previously unsecured debt against your home carries risk and may cost more overall despite lower monthly payments, so it needs careful advice.

Buy to let

What is a buy-to-let mortgage?
A buy-to-let mortgage is for a property you rent out rather than live in. Most are not regulated by the FCA and are assessed mainly on the rental income.
How is buy-to-let borrowing calculated?
Lenders use the expected rent, stress-tested against an interest rate, to decide how much they will lend. The rent usually needs to cover the mortgage interest by 125% to 145%.
What is an ICR or rental stress test?
The interest coverage ratio checks that the rent covers the mortgage interest by a required margin at a stressed rate, which is how buy-to-let affordability is judged.
Should I buy in my own name or a limited company?
A limited company can be more tax-efficient for higher-rate taxpayers because interest is a business expense, but company rates are usually higher. It is a decision for an accountant alongside your broker.
What is an SPV?
A special purpose vehicle is a limited company set up solely to hold property. Most buy-to-let lenders that lend to companies require an SPV rather than a trading business.
Can I get a buy-to-let mortgage as a first-time landlord?
Yes. Some lenders require you to already own a home or have landlord experience, but others accept genuine first-time landlords at standard rates.
What is an HMO mortgage?
An HMO mortgage funds a house in multiple occupation, let room by room. It generates higher yields and needs a specialist lender, with licensing and room counts affecting who will lend.
What is a portfolio landlord?
A landlord with four or more mortgaged buy-to-let properties. This triggers additional underwriting across the whole portfolio, not just the property being financed.
Can I get a holiday let mortgage?
Yes, through specialist lenders who assess projected seasonal income rather than a standard tenancy. The lender panel is smaller than for standard buy-to-let.
What is let to buy?
Let to buy is keeping your current home and letting it out while buying a new one to live in, arranged as a buy-to-let on the old property and a residential on the new.
Are buy-to-let mortgages regulated?
Most are not regulated by the FCA. A small category of consumer buy-to-let — for example letting a former home rather than an investment — is regulated.
How has tax changed for landlords?
Since Section 24, individual landlords can no longer deduct all mortgage interest from rental income before tax, which changed the maths for higher-rate taxpayers. Speak to an accountant about your position.

Commercial mortgages

What is a commercial mortgage?
A commercial mortgage funds property your business trades from, or commercial property held as an investment. These are not regulated by the FCA.
How much deposit do I need for a commercial mortgage?
Typically 25% to 30% of the value, though strong trading businesses can sometimes borrow more, and additional security can help.
What is an owner-occupier commercial mortgage?
It funds premises your own business will operate from. Lenders assess the strength and profitability of the business as much as the property.
What is a commercial investment mortgage?
It funds commercial property you let to a tenant. Underwriting focuses on the lease, the tenant’s covenant strength and the unexpired term.
What is a semi-commercial mortgage?
It covers mixed-use property such as a shop with flats above. These are often priced more keenly than pure commercial because of the residential element.
Can I buy commercial property through my pension?
Yes. A SIPP or SSAS can buy commercial property, with lending rules that differ from an ordinary commercial mortgage. Only commercial property qualifies.
What is a debt service cover ratio?
DSCR measures whether the business generates enough profit to cover the mortgage payments. Lenders commonly want to see at least 1.25 times cover.
Can a new business get a commercial mortgage?
It is harder without a trading history, but possible with a strong business plan, experience in the sector, or additional security. A broker can identify lenders open to it.

Bridging and development finance

What is a bridging loan?
Bridging is short-term finance secured on property, used when speed matters or a standard mortgage cannot complete in time. It is faster and more flexible but more expensive.
When is bridging regulated?
A bridging loan is regulated when it is secured against a property you or a family member lives in or intends to live in. Loans on investment property are unregulated.
What is auction finance?
Auction finance is arranged to meet the tight completion deadline after a property auction, usually 28 days, where a standard mortgage could not complete in time.
How much does a bridging loan cost?
Bridging is usually priced as a monthly interest rate plus arrangement fees, so the total cost depends heavily on how long you hold it. It is designed to be repaid quickly.
What is an exit strategy?
It is how you will repay the bridge — typically selling the property or refinancing onto a term mortgage. Lenders will not proceed without a clear, credible exit.
What is development finance?
Development finance funds building or major refurbishment, released in stages against a valuer’s assessment as the project progresses.
What is development exit finance?
It refinances a completed development onto a cheaper rate while the units are sold, replacing more expensive development debt and easing cash flow.
What is the difference between light and heavy refurbishment?
Light refurbishment covers cosmetic works needing no planning or building regulations; heavy refurbishment involves structural work, extensions or change of use.

The application process

How long does a mortgage application take?
A decision in principle can often be issued within a day, while a full application to a formal offer typically takes two to six weeks depending on the lender and the valuation.
What documents will I need?
Usually proof of identity and address, three months of payslips and bank statements, and your latest P60. Self-employed applicants typically need one to three years of accounts or SA302s.
What happens during a mortgage valuation?
The lender assesses whether the property is worth what you are paying and is suitable security. It may be an automated, desktop or physical valuation depending on the case.
Do I need a survey as well as a valuation?
A lender’s valuation is for its own purposes, not a survey of the property’s condition. A homebuyer or building survey is a separate, optional check we would generally recommend.
What is a mortgage offer?
A mortgage offer is the lender’s formal commitment to lend on specified terms once underwriting is complete. Offers are usually valid for a set period, commonly three to six months.
What is conveyancing?
Conveyancing is the legal work of transferring property ownership, handled by a solicitor or licensed conveyancer, running alongside your mortgage application.
Can my mortgage offer be withdrawn?
It can, if your circumstances change materially before completion — for example a change of job, new debt or a failed final check — so it is best to avoid big financial changes.
What happens on completion?
On completion the funds are released, ownership transfers and, for a purchase, you get the keys. Your first mortgage payment is usually the following month.
Can I port my mortgage to a new property?
Many deals are portable, letting you carry your rate to a new home, subject to the lender reassessing affordability and the property. It is not always the cheapest route.
What happens if my circumstances change during the application?
Tell your adviser straight away. Changes to income, employment or credit can affect the offer, and it is far better to address them early than at the last minute.

Costs, rates and protection

What does a mortgage broker charge?
Any fee is set out in writing and disclosed in full before any work begins. Advice may be paid by a fixed fee, by commission the lender pays on completion, or a combination — always confirmed up front.
What is a product or arrangement fee?
It is a fee some lenders charge to set up a mortgage, often added to the loan. A deal with a fee can still work out cheaper overall if the rate is low enough, which is why true cost matters more than the headline rate.
What is APRC?
The annual percentage rate of charge shows the overall cost of a mortgage over its full term, including fees, as a yearly percentage, to help compare deals on a like-for-like basis.
What other costs are involved in buying a home?
Beyond the deposit, budget for valuation and legal fees, searches, stamp duty where it applies, and moving costs. Your adviser can help you plan for these.
What is stamp duty?
Stamp Duty Land Tax is a tax on property purchases above certain thresholds in England and Northern Ireland, with different rules for first-time buyers and additional properties. Scotland and Wales have their own equivalents.
Do I need life insurance for a mortgage?
It is not a legal requirement, but life cover that would repay the mortgage is strongly advised so your home is protected if the worst happens. It is often arranged alongside the mortgage.
What is buildings insurance and do I need it?
Buildings insurance covers the structure of your home. Lenders require it to be in place from completion, and it is usually a condition of the mortgage.
What is income protection?
Income protection pays a regular benefit if you cannot work due to illness or injury, helping you keep up mortgage and other payments. It is optional but worth considering.
Should I fix my mortgage rate?
A fix gives certainty of payments, which many people value, while a variable rate can be cheaper but carries the risk of rises. The right choice depends on your budget and appetite for uncertainty.
What happens if I miss a mortgage payment?
Contact your lender immediately — they would rather help than repossess. Missed payments harm your credit file and, if they continue, your home may be at risk, so early action matters.

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