Use this page as a clear, step-by-step path through mortgages. Each section builds on the last, so you can move from basics to specialist topics without getting lost.

Mortgage basics at a glance.

A mortgage is a loan secured against a property. You borrow money from a lender and pay it back with interest over an agreed term. If you keep up repayments, you keep the home. If you miss them, the lender can take the property to recover the debt. That’s the simple core.

Repayment vs interest-only.

With a repayment mortgage, each monthly payment clears some interest and some capital, so the balance falls over time. With interest-only, you pay only the interest each month and must have a plan to repay the original amount at the end of the term. Repayment gives certainty. Interest-only gives lower monthly outgoings but demands discipline and a credible payoff route.

Fixed, variable, and tracker rates.

A fixed rate gives a set interest for a period (often two to five years). It protects you from rate rises but can come with early repayment charges (ERCs) if you leave early. A variable or tracker rate moves with the lender’s standard variable rate (SVR) or a benchmark such as the Bank of England base rate. Variable deals can be cheaper at times, but can rise without notice.

Deposits, LTV, and affordability.

Your deposit is the cash you put down. The rest is the mortgage. Loan-to-value (LTV) shows how much you borrow as a percentage of the property price. A 20% deposit is an 80% LTV mortgage. Lower LTV usually unlocks better rates. Lenders also test affordability by looking at your income, spending, and credit history to ensure the loan is sustainable.

Key fees you’ll meet.

Common costs include arrangement or product fees, valuation fees, legal fees, and possibly a booking fee. Some lenders add the product fee to the loan; this raises the total interest you’ll pay, so weigh any savings in the headline rate against the cost over the term.

Guides by goal

Different goals call for different playbooks. This section explains what to focus on for each goal and where to go next.

Buying your first home.

Start by building a deposit and tidying your credit file. Get an Agreement in Principle (AIP) to understand your budget. Weigh fixed vs variable options and compare the total cost over the fixed period (payments plus any fees), not just the rate. When viewing homes, check the EPC rating, lease length if it’s a flat, local transport, schools, and zoning.

Moving home.

First, check whether your current mortgage is portable. If porting is allowed, you can take your existing rate to the new property (subject to lender checks). If the numbers work better, consider a fresh deal. Align timelines: sale, purchase, and mortgage offer must all land cleanly to avoid chain stress.

Remortgaging.

Start about six months before your fixed deal ends. Compare new deals with a full cost view: rate, fees, ERCs if leaving early, and the new term length. Consider whether to keep the same term or shorten it to reduce the lifetime interest.

Buy-to-let.

Lenders assess expected rental income as well as your personal finances—budget for landlord insurance, maintenance, safety certificates, and void periods. Stress-test your rent against higher rates to keep the numbers robust.

Guides by borrower type

Borrowers don’t all fit the same mould. This section helps you read the criteria that matter to your situation and choose a path that works.

Employed vs self-employed.

If you’re employed, payslips and P60S are the backbone of checks. If self-employed, lenders look at SA302s, tax calculations, and accounts (often two to three years). A clear track record and sensible drawings bolster your case. Keep business and personal finances tidy to make underwriting smoother.

Limited or adverse credit.

Late payments, defaults, or CCJs don’t end the journey, but they can narrow your options. The older and smaller the issue, the better. Demonstrate stability: on-time bills, a stable address history, and a realistic deposit. A specialist lender may price in more risk; weigh the total cost and revisit mainstream options once your credit improves.

Joint applications and guarantors.

Two incomes can raise affordability, but both parties are fully liable. A guarantor or a joint borrower, a sole proprietor setup can help where one party supports affordability without owning the property. Understand the legal and tax implications before committing.

Contractors and variable income.

Day-rate contractors and gig workers may need extra evidence, such as contracts, invoices, and bank statements. Some lenders accept day-rate x number-of-days formulas; others prefer averaged income. Keep documentation complete and consistent.

Later-life borrowing and equity release.

Retirement Interest-Only (RIO) and lifetime mortgages serve older borrowers with specific goals. If you’re exploring equity release options, it helps to forecast how much you could release and the long-term cost. A smart way to frame your numbers is with a free reverse mortgage calculator so you can see how interest rolls up and what impact different rates may have over time. Use it to compare scenarios and discuss them with a qualified adviser before making decisions.

Mortgage products and features

Mortgages have features that can either save money or add flexibility. Learn how to match them to your goals.

Offset and flexible mortgages.

With an offset, your savings sit in linked accounts and “offset” your mortgage balance for interest calculations. You keep access to the cash but pay interest on a lower net figure, which can cut both interest and term. Flexible features such as penalty-free overpayments, payment holidays, or borrowing back can help fit a changing life.

Rate locks, incentives, and small print.

Some lenders let you lock a rate for a set window while your purchase progresses. New-builds may come with incentives; read how these affect the effective purchase price and LTV. Always check the product’s Key Facts for ERCs, portability, and what happens after the initial deal (reversion rate).

Overpayments and ERCs.

Overpaying even modest sums can erase years from the term and reduce interest. Many deals allow 10% of the balance per year without penalty during the fixed period. Go beyond that, and ERCs may kick in. If you expect lump sums, look for flexible overpayment allowances.

The application journey

A calm, organized process protects your budget and your nerves.

Agreement in Principle (AIP).

An AIP is a lender’s initial view of what they might lend, based on a soft credit check and your declared figures. Use it to set a realistic search range, not as a promise.

Documents and underwriting.

Gather ID, proof of address, payslips or accounts, bank statements, deposit evidence, and details of debts. Underwriters check stability, income, and whether the property is suitable security. Be ready to explain anomalies such as large transfers or new credit lines.

Valuation, survey, and conveyancing.

A lender’s valuation confirms the property is adequate security. It is not a detailed survey. Commission the survey that fits your property: a Home Survey Level 2 (RICS) for most homes, or a Building Survey for older or altered buildings. Your conveyancer handles searches, contracts, and the transfer of funds.

Offer, exchange, and completion.

The mortgage offer formalizes the deal. In exchange, contracts become legally binding, and you pay the deposit. Completion is when funds move, and you get the keys. Keep buildings insurance ready from exchange for houses, and understand responsibilities for leasehold flats (often the freeholder insures the building).

Costs and repayments

The sticker price is only part of the story. Understand the costs that shape long-term value.

Upfront costs.

Budget for deposit, valuation, legal work, searches, and possibly a product fee. If you add the product fee to the loan, calculate the extra interest over the fixed period to see if it still makes sense.

Ongoing costs.

Monthly payments are central, but plan for insurance (buildings is essential; contents is wise), service charges if you own a flat, ground rent on older leases, and ongoing maintenance. Keep a buffer for rate changes at the end of the fixed period.

How interest works.

Most mortgages use daily interest. Overpay early in the term if you can; the compounding effect is strongest then. Compare deals by APRC (a blended cost indicator) and by total paid during your initial fix, including fees.

Cutting lifetime interest.

Shorter terms raise monthly payments but slash total interest. Overpay within your allowance and review your deal ahead of expiry to avoid drifting onto an expensive SVR.

Property and scenario guides

The property you choose can change the mortgage you can get and the checks you must pass.

New-builds vs existing homes.

New-builds can have tighter lending criteria and require a careful timeline. Confirm what happens if build dates slip. Check warranties (e.g., NHBC) and snagging lists. For existing homes, focus on condition, roof, damp, electrics, and the EPC. Upgrades that lift the EPC can add value and lower running costs.

Flats, leasehold, and freehold.

Freehold means you own the building and land. Leasehold gives you the right to occupy for a set period. Lenders review lease length (often wanting 80+ years with a buffer), ground rent terms, and service charges. Ask for the management pack early to avoid delays.

Shared ownership and staircasing.

You buy a share and pay rent on the rest. Lenders assess both costs. Check how and when you can “staircase” to buy more shares and what fees apply at each step.

Second homes and investment properties.

For a second home, lenders look closely at affordability and your reason for purchase. For investment property, stress-testing of rental income is standard practice. Keep yields robust under higher rate assumptions.

Tools and calculators

Numbers tell the truth. Use calculators to sense-check affordability, compare products over the fixed period, model overpayments, and estimate stamp duty. Tools are most useful when you feed them realistic figures: stable income, honest spending, and emergency buffers. Save scenarios and revisit them when rates or plans change so your decisions stay current.

A–Z mortgage terms

An alphabet of key terms helps you decode lender language quickly.

• AIP (Agreement in Principle): A lender’s early view of what you may borrow.
• APRC: A single figure showing the overall cost of credit over time.
• Conveyancing: Legal work to transfer property.
• ERC (Early Repayment Charge): A fee for leaving a deal early.
• Equity: Property value minus mortgage balance.
• LTV (Loan-to-Value): Mortgage as a percentage of property value.
• Offset: Savings used to reduce interest on your mortgage.
• Product transfer: Switching to a new deal with the same lender.
• SVR (Standard Variable Rate): The lender’s default rate after your deal ends.

How to use this page for the best results

1. Read the basics to decide between repayment and interest-only, and fixed or variable.
2. Pick your goal (first home, move, remortgage, buy-to-let) and scan the key checks.
3. Match your borrower profile to lender expectations so your paperwork is spotless.
4. Choose product features that reflect how you use money: offset for healthy savings, higher overpayment allowances if you expect bonuses, and flexible terms if your income varies.
5. Follow the journey from AIP to completion, so no task slips through the net.
6. Run the numbers with calculators and double-check your plan against rate moves.
7. Look up terms in the A–Z whenever you need to translate jargon fast.

Conclusion

Strong mortgage decisions come from clear steps, realistic numbers, and well-matched products. Move through these sections in order, keep an eye on total cost rather than headline rates, and revisit your plan whenever your life or the market changes. The result is a mortgage that serves your goals, not the other way round.