Frequently asked questions (mortgages)

Buying a home, remortgaging, or investing in property can feel complicated—especially when you’re trying to understand what lenders look at and how the process works. Below are clear answers to some of the most common mortgage questions.

What is a mortgage?

A mortgage is a loan used to buy property. You repay the loan over a set term and you pay interest on the amount borrowed.

If you do not keep up with repayments, the lender may take action to recover the property.

Will I be accepted for a mortgage?

Mortgage acceptance depends on each lender’s criteria and your personal circumstances. Lenders typically consider:

• The amount you want to borrow
• Your deposit (and the loan-to-value, or LTV)
• Your income and employment type
• Your monthly outgoings and existing debts
• Your credit history
• Your age and the mortgage term you’re asking for
• Whether you’re applying alone or jointly

Even where one lender declines, another may be willing to consider the application—particularly if the reasons for decline are specific (for example, affordability, deposit size, or credit file details).

How does the mortgage application process work?

While each case is different, the journey often looks like this:

1. Initial checks and affordability – your income, outgoings and deposit are assessed.
2. Decision in principle (or similar) – an early indication of how much a lender may be willing to lend.
3. Property stage – the lender will require a valuation and you’ll usually instruct a solicitor.
4. Full application and underwriting – the lender reviews the details and supporting documents.
5. Offer and completion – once conditions are met, the purchase or remortgage completes.

Timelines can vary depending on factors such as the speed of document gathering, the property type, and how quickly the solicitor and lender progress.

How much can I afford to borrow?

Most lenders assess affordability based on what you can realistically pay each month after your essential spending and existing commitments.

Rather than focusing only on income, lenders also look at:

• Your regular outgoings (including credit commitments)
• Any dependants and maintenance payments
• Your stability of income (especially if self-employed)
• The mortgage term and interest rate type

A mortgage offer is not just about the maximum loan amount—it’s also about whether the repayments are sustainable.

How much deposit will I need?

Many mortgages require at least a 5% deposit, but the exact deposit needed depends on the lender, the property, and your circumstances.

A larger deposit can improve the LTV position, which may affect the range of products available.

You may also be able to use:

• Equity from a property you already own (for example, when remortgaging or moving home)
• Right to Buy discount (where applicable) as part of the deposit picture

What are the associated costs when buying a house?

Buying a property usually involves more than just your deposit and mortgage. Common costs can include:

• Mortgage fees (product fees, booking fees, or arrangement fees)
• Valuation and survey fees (the lender’s valuation and any additional survey you choose)
• Legal fees (solicitor costs for conveyancing)
• Search fees (carried out by your solicitor)
• Stamp Duty Land Tax (SDLT) (where applicable)
• Moving costs (removals, storage, and related expenses)

The exact amounts vary depending on the property price, the mortgage product, and the level of survey and legal work required.

What type of mortgage do I need?

There are several mortgage types, and the “right” one depends on your plans and how you want your repayments to behave over time.

Common options include:

• Repayment mortgages – monthly payments cover interest and gradually reduce the balance.
• Interest-only mortgages – monthly payments cover interest only, with the capital repaid later.
• Fixed-rate mortgages – repayments are set for a period.
• Variable-rate mortgages – repayments can change over time.
• Tracker/discount/capped structures – interest linked to a reference rate or with limits.

Some mortgages also offer flexibility (for example, overpayments), but features vary by product.

How much does a mortgage cost?

Your mortgage cost is made up of:

• Interest (the cost of borrowing)
• Any product fees (some are paid upfront, others may be added to the loan)
• Potential additional charges (for example, valuation, legal, or lender-related fees)

Your monthly payment depends on the mortgage amount, term, and interest rate structure.

Can I get a mortgage with bad credit?

A poor credit history does not automatically prevent you from getting a mortgage, but it can affect:

• The lenders willing to consider your application
• The deposit you may need
• The interest rate and product options available

If you have adverse credit (such as defaults, CCJs, IVA/DMP arrangements, or bankruptcy history), it’s important to ensure the application is supported with accurate information and a clear explanation where appropriate.

How long does it take to get a mortgage?

Mortgage timelines depend on multiple parties and stages, including:

• How quickly documents are provided
• How complex the application is (income type, credit history, property type)
• The speed of the solicitor and searches
• The lender’s underwriting process

In practice, delays often come from missing information, slow responses, or property-related issues.

Are there government incentives for first-time buyers?

There are schemes designed to help some first-time buyers, such as shared equity and equity loan models (where available), plus savings-based incentives.

These schemes can change over time and may have specific conditions around property type, location, and eligibility. Understanding the rules that apply to your situation is key before relying on a scheme.

What insurance do I need when buying a home?

Lenders will typically require buildings insurance before exchange.

Other protection may be considered depending on your circumstances, such as:

• Life cover (to protect repayment if something happens)
• Income protection (to help with repayments if you can’t work)
• Critical illness cover (depending on policy terms)

What are the different types of survey?

A lender will usually require a valuation, but you may choose to commission an additional survey for peace of mind. Common survey types include:

• Home condition survey – a basic check of condition and risks.
• Homebuyer’s report – more detailed than a condition survey, often including valuation.
• Building survey – the most comprehensive option, commonly used for older or unusual properties.

The right level of survey depends on the property and how much detail you want.

Can I remortgage my home?

Many homeowners remortgage to:

• Change the interest rate or mortgage term
• Access a different repayment structure
• Release equity (where appropriate)
• Consolidate certain debts (where allowed by the lender and product)
• Fund home improvements

Whether remortgaging is suitable depends on the costs of switching and your longer-term goals.

How do I remortgage?

Remortgaging typically involves:

• Reviewing your current mortgage and any early repayment charges
• Checking affordability for the new product
• Gathering documents (income, expenditure, and property details)
• Completing the application and valuation steps
• Arranging legal work and completion

It’s also important to consider how any fees may affect the overall cost.

When should I remortgage?

A common approach is to start planning before your current deal ends, so there’s time to compare options and complete the process.

If you’re considering switching for reasons other than the end of a fixed term—such as reducing term length or changing repayment flexibility—timing can still matter because of potential exit costs.

How much does it cost to remortgage?

Remortgage costs can include:

• Arrangement or product fees
• Valuation and survey fees (where required)
• Legal fees
• Any early repayment charges on your existing mortgage

Some fees may be added to the new mortgage, but that can increase the total amount repaid over time.

What is a “bad credit mortgage” and how does it work?

A bad credit mortgage is still a mortgage secured against property. The difference is that it is designed for borrowers with a higher perceived risk.

As a result, lenders may:

• Offer a narrower range of products
• Require a higher deposit (lower LTV)
• Charge a higher interest rate

What happens to my mortgage when I move home?

When you move, you may be able to:

• Port your mortgage (where your lender allows it)
• Repay and take out a new mortgage for the new property

If you need to borrow more, the lender will reassess affordability and the new property will be valued.

Can I buy and sell at the same time?

It’s possible, but it depends on the chain and timing of your sale and purchase.

Some buyers consider alternatives if they’re struggling to sell quickly, such as temporary renting or structured “let to buy” approaches—where lenders and affordability checks allow.

Do I pay Stamp Duty Land Tax (SDLT) on a buy-to-let property?

In general, buying an additional property can trigger different SDLT treatment compared with buying your main home. The exact rate depends on the purchase price and whether it is your main residence.

Am I eligible for Right to Buy?

Right to Buy eligibility depends on factors such as how long you’ve been a tenant and the type of property. If you are eligible, the discount may be used as part of the deposit picture, but you still need to meet affordability and lender requirements.

What if I have a CCJ, default, or repossession history?

Adverse credit can affect mortgage options and may require a specialist approach.

Key points to understand:

• Adverse entries can remain on credit files for a period of time (often several years)
• Lenders may want evidence of stability since the issue
• Some lenders may consider applications sooner than others, depending on the circumstances

What are lifetime mortgages?

A lifetime mortgage is an equity release product secured against your home. It is typically designed for borrowers who want to access equity while retaining the right to live in the property.

Repayment usually happens when you die, move into long-term care, or sell the property, subject to the product terms.

Final notes: what helps your application go smoothly

Across all borrower types, mortgage applications tend to progress faster when you:

• Provide accurate information and supporting documents promptly
• Keep your credit file stable during the application process
• Budget for the full range of costs (not just the deposit)
• Understand the property and survey requirements early

If you’re unsure which questions are most relevant to your situation, it’s helpful to review your circumstances against the lender criteria and your affordability picture before submitting an application.