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Mortgages,
demystified
for UK borrowers.

Ten plain-English guides covering every UK mortgage situation we see — first-time buyers, portfolio landlords, self-employed and the jargon-bewildered. Skim what's relevant; bookmark the rest.

Explore the guides

Knowledge base

UK only

Topics covered

refreshed every quarter

FCA aligned

100%

Reading time

3 min

Updated for 2026 lender criteria

Jump to a topic

Mortgage broker Mortgages explained Remortgaging Types of mortgage First-time buyer Buy-to-let Self-employed Bad credit Moving home Sustainability

Guide 01 · Mortgage broker

Mortgage broker

What a UK mortgage broker actually does — and how an FCA-regulated whole-of-market broker can save you thousands.

A broker is your independent advocate — not tied to any single lender.
Whole-of-market brokers compare 90+ UK lenders including specialist ones high-street banks won't tell you about.
FCA regulation means every recommendation must be in your best interest — with written rationale and a Key Facts Illustration.
Procuration fees (typically 0.30–0.45% of the loan) are paid by the lender — we share a chunk back with you as cashback.

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Guide 02 · Mortgages explained

Mortgages explained

Loan-to-value, fixed vs tracker, ERCs, APRC — the jargon decoded in plain English.

LTV (loan-to-value) = mortgage ÷ property price. Sub-60% LTV unlocks the cheapest rates; 90–95% LTV is for low-deposit buyers.
Fixed-rate = locked rate for 2/3/5/10 years. Tracker = follows Bank of England base rate ± a margin.
ERCs (early-repayment charges) are penalties for switching before your fix ends — typically 5% in year one, tapering down.
APRC is the true annual cost over the full term — always compare APRC, not just headline rate.
SVR (Standard Variable Rate) is what you fall onto when a fix ends — usually 7–9% APR. Avoid it.

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Guide 03 · Remortgaging

Remortgaging

When (and when not) to remortgage — and the 6-month rule that lets you lock a deal today before rates move.

Start the remortgage process 6 months before your current fix ends — UK lenders let you lock a new rate today valid for up to 180 days.
Switching off SVR after a fix expires typically saves £100–£400/month on a £250k mortgage.
Free legals + free valuation are standard on most remortgage products — the upfront cost is usually £0.
You can capital-raise during a remortgage — for home improvements, debt consolidation or a BTL deposit (subject to affordability).
Stress-test: most lenders check you could afford the rate +1–3% — keep credit-card balances low in the 3 months before applying.

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Guide 04 · Types of mortgage

Types of mortgage

Repayment, interest-only, offset, joint borrower sole proprietor, shared ownership — the UK landscape mapped.

Capital repayment — you pay interest + a slice of the capital every month. You own the home outright at the end. The default UK choice.
Interest-only — you only pay interest; the capital is repaid in a lump sum at the end (typically via investments or property sale). Common on BTL.
Offset — your savings 'cancel out' part of the mortgage balance for interest purposes. Useful for higher earners with healthy savings.
Joint Borrower, Sole Proprietor (JBSP) — a parent's income supports the affordability but the property is owned solely by the child.
Shared ownership — you buy 25–75% of a property and pay rent on the rest. Lower deposit needed.

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Guide 05 · First-time buyer

First time buyer mortgages

Stamp duty relief, 5% deposits, Lifetime ISAs, gifted deposits — everything a first-time buyer should know.

Stamp Duty (SDLT) relief — first-time buyers pay 0% SDLT on the first £425,000 (England & NI) — saving up to £6,250.
5% deposit schemes — 95% LTV mortgages are widely available; the Mortgage Guarantee Scheme runs until June 2026.
Lifetime ISA (LISA) — save up to £4,000/year and the government adds a 25% bonus (£1,000) toward your first home.
Gifted deposits from family are accepted by all major lenders with a simple letter confirming it's a gift, not a loan.
Affordability — most lenders cap at 4.5× joint income; specialist lenders go to 5.5× for professionals (doctors, lawyers, accountants).

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Guide 06 · Buy-to-let

Buy-to-let mortgages

Personal name vs Ltd-company SPV, Section 24, HMO and holiday-let lenders — BTL strategy for 2026.

Ltd-company SPVs (Special Purpose Vehicles) sidestep Section 24 — mortgage interest is fully deductible at corporation tax rates instead of being capped at 20% personal relief.
Rental cover must usually meet 125–145% of mortgage interest stressed at 5.5–7%. Top-slicing lenders let you use other income to bridge a shortfall.
HMO (Houses in Multiple Occupation) and holiday lets require specialist lenders — fewer than 20 on the market, all on our panel.
Portfolio landlords (4+ mortgaged BTLs) face additional underwriting — we co-ordinate the full submission pack.
Additional 3% stamp duty surcharge applies on second properties — factor it into your gross-yield maths.

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Guide 07 · Self-employed

Self-employed mortgages

How to get the same rate as a PAYE applicant when your income is on a tax return.

Sole traders — most lenders need 2 years of SA302s (HMRC tax calculations) + tax-year overviews. Some accept 1 year with strong evidence.
Ltd-company directors — lenders typically use salary + dividends. Specialist lenders use salary + retained profit, which can dramatically increase borrowing.
Contractors — day-rate × 5 × 46 weeks is a common formula. CIS subcontractors have their own specialist panel.
Income averaging — some lenders average the last 2–3 years; others use the lower year. Choosing the right lender matters enormously.
Avoid SVR — being self-employed already narrows your options. A broker is critical to access specialist lenders that PAYE-only customers don't need.

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Guide 08 · Bad credit

Bad credit mortgages

Defaults, CCJs, IVAs, missed payments — what's actually possible and the specialist lenders that say yes.

Missed payments (1–2 over the last 2 years) — most high-street lenders still consider you. Specialist lenders accept more.
Defaults & CCJs — usually need to be satisfied 12+ months ago and small in value. Specialists like Pepper, Kensington and Bluestone serve this market.
IVAs & DMPs — typically need to be discharged 3 years for high-street, 1 year for specialists. Higher deposit (15–25%) often required.
Bankruptcy — discharged 3+ years opens specialist lender doors; 6 years brings you back to mainstream.
Rates are higher than prime — typically +1.5 to +3% — but a 2-year deal lets you 'rebuild' and remortgage to mainstream rates after.

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Guide 09 · Moving home

Moving home

Port vs new mortgage, simultaneous exchange/completion, chains — the moving-home playbook.

Porting your existing mortgage avoids ERCs but may not give you the best rate — always benchmark a fresh deal against porting.
Top-up — if the new property costs more, the additional borrowing is usually at the lender's current rate, blended with your ported rate.
Simultaneous exchange and completion is the UK norm — you become legally bound to buy and sell on the same day.
Chains — the average UK chain is 3 properties long; the average completion timeline is 12–16 weeks. We manage solicitor pace alongside you.
Bridging finance can rescue a broken chain — typically 0.45–0.75%/month for 6–12 months. Use sparingly and only with a clear exit.

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Guide 10 · Sustainability

Sustainability

Green mortgages, EPC ratings, retrofit-friendly lenders and what the 2030 EPC-C rules mean for your home.

Green mortgages offer rate discounts (typically 0.05–0.20%) when your property's EPC is A or B — Barclays, NatWest, Nationwide and Halifax all participate.
Energy-efficient retrofit borrowing — many lenders let you borrow an extra £15k–£25k specifically for solar, heat pumps or insulation as part of a remortgage.
EPC-C by 2030 — proposed regulations may require BTL properties to reach EPC-C before re-letting. Plan your retrofit now to avoid forced sales.
Heat pump grants (£7,500 via the Boiler Upgrade Scheme) can be combined with green-mortgage borrowing for an effective rate near 0%.
Solar PV with battery + green-mortgage discount can pay back in 6–9 years on a typical UK home.