UK Mortgages Explained
Whether you’re stepping onto the property ladder, moving home, or looking for a better deal on your current mortgage.
What kind of mortgage do you need?
The main mortgage situations and what to think about for each.
First-Time Buyer
Getting on the ladder usually means a higher loan-to-value mortgage. Look for deals aimed at smaller deposits and check what income multiples lenders will offer.
- LTVs up to 95% are common
- Fixed terms help with budgeting
- Check scheme eligibility (e.g. shared ownership)
Remortgage
When your current deal ends you drop onto the lender's SVR — usually far higher. Start looking 3–6 months before your deal expires.
- Compare the new rate against your SVR
- Factor in arrangement and exit fees
- You can often lock a rate months ahead
Moving Home
You can usually either port your existing mortgage to the new property or take a new deal and pay any early repayment charge.
- Ask your lender if your deal is portable
- Compare porting vs switching costs
- Budget for stamp duty and moving fees
Buy-to-Let
BTL mortgages are assessed on expected rental income, not just your salary, and usually need a larger deposit.
- Typically 25%+ deposit required
- Rent must cover ~125–145% of payments
- Often interest-only rather than repayment
Want to see the impact of overpaying?
Making regular overpayments could shave years off your mortgage term and save you thousands of pounds in interest. Try our interactive visualiser to see the difference it makes.
Try the Overpayment Visualiser