Welcome to your complete guide to mortgages and buying a home in the UK. Whether you’re a first-time buyer, moving home, or exploring investment properties, this hub will walk you through everything you need to know in simple, clear language.
How Mortgages Work in the UK
A mortgage is a loan secured against a property. Most lenders let you borrow between 4–5.5× your income depending on affordability checks, credit history, and deposit size.
Key factors lenders assess:
- Income and employment type
- Deposit amount (LTV)
- Credit history and existing debts
- Monthly outgoings
- Property type and valuation
Types of Mortgages Explained
A quick overview of the main mortgage products:
Fixed-Rate Mortgage
Your interest rate stays the same for 2, 3, 5, 7 or 10 years.
Variable-Rate Mortgage
Your payment changes based on lender or Bank of England decisions.
Tracker Mortgage
Follows the Bank of England base rate plus a set percentage.
Interest-Only Mortgage
You pay interest only, capital is paid later. Usually for landlords or high-income applicants.
How Much Can You Borrow?
Affordability depends on income, debts, credit score and household spending.
Most people can borrow around 4–5× annual income, but joint applicants and high earners may access higher multiples.
Use our tools:
- Mortgage Affordability Calculator
- Mortgage Calculator
Deposits, LTV & How Rates Work
Your deposit affects your LTV (Loan to Value). Lower LTV = cheaper rates.
Typical deposits:
- 5% – minimum for most lenders
- 10% – better rates
- 15–25% – strongest pricing
Interest rates are influenced by:
- Bank of England base rate
- SWAP rates
- Lender risk appetite
Costs of Buying a Home
Buying a property involves several costs beyond your deposit.
Upfront costs:
- Stamp Duty / LBTT / LTT
- Solicitor fees
- Valuation / survey
- Mortgage fees
- Moving costs
Ongoing costs:
- Mortgage payments
- Insurance
- Maintenance
Step-by-Step: Buying a Home
- Save your deposit
- Check your credit
- Get an Agreement in Principle
- Start viewing properties
- Make an offer
- Apply for your mortgage
- Conveyancing & surveys
- Exchange contracts
- Completion — collect your keys!
Tools & Calculators
Easily plan your home purchase using our calculators:
- Stamp Duty Calculator (ENG/NI, Scotland, Wales)
- Mortgage Calculator
- Affordability Calculator
- Mortgage Overpayment Calculator
First-Time Buyers
Buying your first home? Visit the First-Time Buyer Hub for guides on:
- Deposit savings
- Schemes (LISA, Shared Ownership, 5% Mortgage Scheme)
- Step-by-step buying process
- First-time buyer Stamp Duty rules
Remortgaging
Learn when it makes sense to switch your mortgage:
- Coming off a fixed-rate deal
- Increasing your borrowing
- Debt consolidation
- Product transfers
Buying to Let & Property Investment
Explore guides covering:
- Buy-to-let mortgages
- Rental yield calculations
- Tax considerations
- Pros & cons of property investment
