General mortgage questions
Essential information to understand before beginning a mortgage application.
⚙ How much can I borrow for a mortgage?
The amount you can borrow depends on more than a simple income multiple. Lenders may consider your income, expenditure, existing credit commitments, dependants, mortgage term, deposit and credit history.
Different lenders can reach different maximum loan figures using the same information. An individual affordability assessment can therefore be more useful than relying on a general calculation.
Tell us how much you need to borrow →⚙ How much deposit do I need to buy a property?
The deposit required depends on the mortgage products available and whether the property meets the lender’s criteria.
A larger deposit normally reduces the loan-to-value and may provide access to a broader range of products. Some applicants may qualify with a smaller deposit, subject to affordability and lender criteria.
⚙ What does loan-to-value or LTV mean?
Loan-to-value is the mortgage amount expressed as a percentage of the property value.
For example, a £180,000 mortgage on a property worth £200,000 represents 90% loan-to-value. Mortgage products are commonly arranged into different LTV bands.
⚙ What documents will I need for a mortgage?
The exact documents will depend on your employment and circumstances. Lenders may request:
- Proof of identity and address.
- Payslips or evidence of self-employed income.
- Personal or business bank statements.
- Evidence of the deposit.
- Details of loans and credit commitments.
- Property or existing mortgage information.
⚙ What is a mortgage agreement in principle?
An agreement in principle, sometimes called an AIP or decision in principle, is an initial indication that a lender may be prepared to lend a certain amount.
It is not a mortgage offer or guarantee. The lender must still assess the full application, supporting documents and property.
Not sure which mortgage route may suit you?
Give us the important details so our team can understand your circumstances rather than relying on general information alone.
Questions about buying a home
⚙ When should I speak to a mortgage adviser?
It is sensible to review your mortgage position before making an offer on a property.
This can help you understand your potential budget, deposit requirements and any issues that may need to be addressed before applying.
Discuss a property purchase →⚙ Can a first-time buyer get a mortgage with a small deposit?
Mortgages may be available to first-time buyers with a smaller deposit, subject to lender criteria, affordability, credit history and the property being purchased.
The rates and products available may differ from those offered with a larger deposit, so the overall cost should be considered.
⚙ Can I use a gifted deposit?
Many lenders will consider a gifted deposit, commonly from a close family member.
The person providing the gift may need to confirm that the money is not repayable and that they will not have an interest in the property.
⚙ Can I port my mortgage when moving home?
Some mortgage products are portable, meaning you may be able to apply to move the existing product to a new property.
Porting is not automatic. The lender will normally reassess your income, affordability, credit position and the new property.
Remortgage questions
⚙ When should I start looking for a new mortgage deal?
Many homeowners begin reviewing their options several months before their current mortgage deal ends.
The right timing depends on your existing deal, any early repayment charge, the product expiry date and how long a new mortgage offer will remain valid.
Review my remortgage options →⚙ Should I remortgage or take a product transfer?
A product transfer means choosing a new mortgage product with your current lender. A remortgage involves moving to another lender.
The rate, fees, affordability, flexibility and overall suitability should be compared.
⚙ Can I borrow additional money when remortgaging?
It may be possible to increase your mortgage for home improvements, buying out another owner, major expenses or consolidating existing borrowing.
The lender will assess affordability, credit history, the reason for the funds and the new loan-to-value.
⚙ Can I remortgage before my fixed rate ends?
You can review remortgage options before a fixed rate ends, but completing too early could result in an early repayment charge.
In some cases an application can be arranged in advance, with completion planned around the end of the current deal.
Mortgage income and credit questions
⚙ Can I get a mortgage if I am self-employed?
Self-employed applicants can obtain mortgages, although the way income is assessed varies between lenders.
A lender may consider salary and dividends, share of net profit, sole trader profit or another figure supported by accounts and tax documents.
Make a self-employed mortgage enquiry →⚙ Can overtime, commission or bonuses be used?
Some lenders will include regular overtime, commission, bonuses or other variable income.
They may use an average, include only a proportion or require a particular payment history.
⚙ Can benefit income be used for a mortgage?
Some lenders may include certain forms of benefit income, subject to their individual criteria.
They may consider the type of benefit, how long it is expected to continue and whether there is other earned income on the application.
⚙ Can I get a mortgage after starting a new job?
A recent job change does not automatically prevent you from obtaining a mortgage.
Some lenders may consider applicants during probation or before the first full payslip has been received.
⚙ Can I get a mortgage with bad credit?
A history of adverse credit does not always mean a mortgage is unavailable.
The outcome may depend on the type of issue, amount involved, when it occurred, whether it has been satisfied and how accounts have been managed since.
Explain my credit circumstances →⚙ Can I get a mortgage with a default or CCJ?
Some lenders may consider applications involving defaults or county court judgments.
Their criteria may depend on the registration date, value, number of entries, circumstances and whether the entry has been settled.
Protecting the mortgage is only part of the picture.
Tell us about your mortgage, income, family and existing cover so your protection requirements can be discussed properly.
Insurance and protection questions
Guidance about life insurance, critical illness cover, income protection and protecting your home and family.
⚙ Is life insurance compulsory when taking out a mortgage?
Life insurance is not generally a legal requirement for obtaining a mortgage.
It may, however, provide financial support for your family or help repay the mortgage if you die during the policy term.
Discuss protecting my mortgage →⚙ What is life insurance?
Life insurance is designed to pay a lump sum if the insured person dies during the policy term, provided the policy conditions are met.
The money could help repay a mortgage, replace lost household income or support dependants with ongoing living costs.
⚙ What is the difference between level and decreasing life insurance?
Level-term life insurance maintains the same insured amount throughout the policy term.
Decreasing-term insurance is designed so the insured amount reduces over time. It is commonly considered alongside a repayment mortgage.
⚙ What is critical illness cover?
Critical illness cover is designed to pay a lump sum following the diagnosis of a specified serious illness that meets the definition stated in the policy.
Conditions, definitions and exclusions vary between insurers.
⚙ What is income protection insurance?
Income protection is designed to pay a regular benefit if illness or injury prevents you from working and the claim meets the policy terms.
Policies may differ in the amount covered, waiting period, claim duration and definition used to assess whether you are unable to work.
Ask about income protection →⚙ Should couples have joint or separate life insurance?
A joint policy commonly covers two people but pays only once, following the first valid claim.
Separate policies may provide each person with individual cover and the potential for two separate claims.
⚙ Can I get life insurance with an existing medical condition?
An existing medical condition does not automatically mean protection is unavailable.
An insurer may request further medical information and could offer standard terms, increase the premium, apply an exclusion or decline cover.
⚙ How much life insurance or protection cover do I need?
The amount will depend on what you want the policy to achieve. Considerations may include:
- Your outstanding mortgage.
- Other debts or commitments.
- Household income requirements.
- Children or other dependants.
- Existing workplace benefits.
- Existing savings and policies.
⚙ Can I review or replace an existing protection policy?
Existing protection can be reviewed where your mortgage, family, employment or financial circumstances have changed.
You should not cancel existing cover until any replacement policy has been fully underwritten, accepted and placed on risk.
Review my existing protection →Debt consolidation mortgage questions
⚙ Can I remortgage to consolidate debts?
Some lenders allow additional mortgage borrowing to repay unsecured debts such as credit cards or personal loans.
Consolidating shorter-term borrowing into a mortgage may reduce monthly outgoings but could increase the total amount repaid if it is spread over a longer term.
Enquire about debt consolidation →⚙ How much debt can I consolidate into my mortgage?
There is no single limit that applies to every applicant.
The amount may be restricted by the property value, available equity, maximum loan-to-value, affordability and the lender’s criteria.
⚙ Is remortgaging always the best way to consolidate debt?
Not necessarily. Depending on your current mortgage rate, early repayment charge and circumstances, alternatives may include further borrowing from your current lender or a second charge mortgage.
The interest rate, fees, monthly payment, term and total amount repayable should all be compared.
Secured loan questions
⚙ What is a second charge mortgage?
A second charge mortgage is a loan secured against a property that sits behind the existing first mortgage.
The original mortgage remains in place and the second charge is repaid separately.
Ask about secured borrowing →⚙ What can a secured loan be used for?
Subject to lender criteria, secured borrowing may be used for home improvements, debt consolidation, major purchases or certain business-related purposes.
The intended use of the funds must be disclosed and may affect which lenders are available.
⚙ Why use a secured loan instead of remortgaging?
A second charge mortgage may allow the existing first mortgage to remain unchanged.
This may be relevant where replacing the current mortgage would involve an early repayment charge or losing a competitive existing rate.