If you already have a mortgage and you are planning to move home, you face a decision most first-time buyers do not: what to do with your existing mortgage. Can you take it with you? Should you? Would you be better off on a completely new deal? In this guide, I explain exactly how mortgage porting works, when it makes financial sense, what early repayment charges mean for your timing, and how to manage the complexities of buying and selling simultaneously.

Can I take my existing mortgage with me when I move house?

Potentially — if your mortgage is portable. Most standard residential mortgages include a portability feature, which means you can transfer the existing mortgage (with its current rate and remaining term) to a new property. However, portability is not guaranteed, and even if your mortgage is portable, porting it may not always be the right financial decision.

To port your mortgage, your lender will carry out a full reassessment of your financial situation — income, outgoings, credit profile — as if you were applying for a new mortgage. They will also conduct a valuation of the new property. Even with a portable mortgage, there is no guarantee the lender will approve the port if your circumstances have changed materially since you originally took it out.

What is porting a mortgage and how does it work?

Porting means transferring your existing mortgage deal to a new property, keeping the same interest rate, product type, and remaining term. You are, in effect, swapping the security from one property to another while keeping everything else the same.

The process typically works as follows:

1. You apply to your lender to port the mortgage to the new property
2. The lender reassesses your affordability based on your current circumstances
3. They conduct a valuation of the new property
4. If approved, you repay the existing mortgage on your sale (using sale proceeds) and simultaneously take out the ported mortgage on your new purchase

The timing of the simultaneous sale and purchase is critical, and any gap between completing on the sale and completing on the purchase needs to be managed carefully — particularly if you want to avoid a period where you technically have no mortgage and have repaid the original, potentially losing the opportunity to port.

Will I have to reapply for my mortgage if I move home?

Yes — even if you are porting. The lender is applying their current affordability assessment to your current financial situation, not relying on their original approval from several years ago. Your income, outgoings, and credit profile will all be reassessed against current underwriting criteria.

This matters if your circumstances have changed. If your income has increased substantially, you may be able to borrow significantly more than your original mortgage. If you have taken on significant additional commitments — car finance, higher mortgage payments on other properties, changes to credit utilisation — the lender may approve the port on the original amount but decline to increase it.

What happens if I need to borrow more when I move to a more expensive property?

This is very common — most people moving home are upsizing. If you want to borrow more than your existing mortgage balance, there are a few options:

Additional borrowing with the same lender: Many lenders will allow you to port the existing mortgage and take a top-up loan for the additional amount needed. The top-up is typically on a new product at the current market rate — so you end up with two separate loan parts running simultaneously: your original ported product and the new top-up product.

Full remortgage to a new lender: Sometimes it makes more financial sense to pay off the existing mortgage (potentially including an early repayment charge) and take an entirely new mortgage on the new property for the full amount needed. If current market rates are competitive against your existing rate and the additional borrowing is substantial, the ERC may be justified by the better overall deal available.

We calculate both options with actual numbers before recommending either. The right answer depends on: your current rate, the ERC, how much additional borrowing you need, and what rates are available for the full amount from across the market.

Will I face an early repayment charge if I move before my fixed rate ends?

If you are porting your mortgage to the new property, you should not face an ERC — you are continuing the same mortgage, not ending it. The product transfers from one property to the other.

However, ERCs can arise in moving scenarios in two situations: first, if you are unable to port and need to repay the mortgage early (breaking the fixed term before porting can be completed); and second, if you want to take a completely new mortgage rather than port, forcing an early repayment of the existing deal.

ERCs are typically a percentage of the outstanding loan balance, reducing year by year through the fixed period. On a £300,000 mortgage, a 2% ERC is £6,000. Whether paying this is justified depends entirely on what you gain by switching versus what you save by porting — a calculation we make with every home mover client.

How does the equity in my current home affect what I can borrow?

Equity is the difference between your property’s current value and the outstanding mortgage balance. When you sell, the equity is released as cash — which you can put towards the deposit on your next purchase.

The more equity you have, the lower the LTV on your next mortgage, which typically means access to better rates and a wider choice of lenders. For home movers who bought several years ago and have seen property values rise, the equity position is often significantly better than they realise — and this can transform the range of mortgage products available to them on the next purchase.

We always calculate the expected net equity from the sale (selling price minus outstanding mortgage, minus estate agent fees, minus solicitor costs) as part of mapping out the financial picture for a home move.

What if my new property is worth less than my outstanding mortgage?

This is known as negative equity — owing more on your mortgage than the property is worth. It is relatively uncommon for existing homeowners but can occur in areas where property values have fallen since purchase, or where significant additional borrowing was taken.

Moving home in negative equity is very difficult — most lenders will not allow you to port a mortgage to a new property if the existing security is in negative equity, because you have no equity to contribute to the new purchase. It typically requires either waiting for values to recover, making overpayments to reduce the balance, or negotiating with the lender on an individual basis.

If you are concerned you might be in or near negative equity, a conversation with a broker who can assess your position honestly is the right first step.

What if there is a gap between selling and buying?

In an ideal world, your sale and purchase complete on the same day and there is no gap. In practice, chains shift, legal delays happen, and the two transactions do not always align perfectly.

If your sale completes before your purchase does — and you need to repay your mortgage on the sale — you may need bridging finance to fund the purchase of the new property until the sale funds are available. This is one of the most common residential uses for bridging loans, and we arrange regulated bridging finance as part of our service*. See our Bridging Loans guide for full details.

*This service is offered by a trusted third-party.

Alternatively, some buyers complete the sale and move into rental temporarily while their purchase progresses — less expensive than bridging finance if the timeline is uncertain, but more disruptive.

How long does it take to get a mortgage when moving home?

A porting application — if straightforward and with a lender who holds your existing file — can move quickly, sometimes in two to three weeks. A new mortgage with a different lender follows the same timeline as a standard application: typically four to eight weeks from application to offer, then the legal process until completion.

The key practical message: do not leave this until your property is already under offer. Contact a broker as early as possible in the process — ideally while you are still preparing to put your home on the market. Knowing what you can borrow helps you search in the right price range, and having finance in place makes you a more credible buyer when you put in an offer on your next property.

Income protection is consistently cited by financial advisers as the most undervalued protection product on the market — and consistently bought by the fewest people. In this guide, I explain exactly what income protection does, why it is arguably more important than life insurance for most working-age adults, how it differs from critical illness cover and the largely discredited PPI, what a deferred period means, and whether it is worth the cost if you already have employer sick pay.

What does income protection insurance actually cover?

Income protection insurance pays you a regular monthly income — typically 50–70% of your pre-illness gross salary — if you are unable to work due to illness or injury. Crucially, unlike critical illness cover, it is not limited to a specific list of conditions. It pays if you cannot do your job, whatever the medical reason.

The policy continues paying until one of three things happens: you return to work, the policy term ends, or you reach a specified maximum claim period (some policies are limited to one or two years per claim; others pay until your selected retirement age). The difference between a "short-term" and "long-term" income protection policy is significant — short-term policies limit individual claims to a set period, while long-term policies pay indefinitely until you can return to work or retire.

For most people who want genuine financial protection against long-term illness, a long-term income protection policy with an "own occupation" definition (more on this below) is the gold standard.

How much of my salary will income protection pay out?

Insurers will typically allow you to protect up to 60–70% of your pre-illness gross income. The cap exists deliberately — the policy is designed to help you manage financially during illness, not to make illness financially preferable to working. Combined with any state benefits (Statutory Sick Pay, Employment and Support Allowance), most people can replace a meaningful proportion of their take-home pay during a period of illness.

The benefit you receive is usually tax-free (in most structures), which means 60% of gross income typically equates to a higher proportion of your actual take-home pay. For example, a basic rate taxpayer might receive 60% of gross, which may be 75–80% of their net take-home pay.

We calculate the benefit level you actually need based on your specific outgoings — mortgage, bills, family costs — rather than applying a generic percentage. The goal is not to replace your full lifestyle; it is to ensure the essentials are covered while you recover.

How long does income protection pay out for?

This depends entirely on the policy you take out, and it is one of the most important variables to understand when comparing policies.

Short-term income protection: pays for a limited period per claim — typically one or two years. After the claim ends, you are left without income from the policy even if you are still ill. These policies are cheaper, but they provide limited protection against long-term illness.

Long-term income protection: pays until you return to work, reach the end of your policy term, or die — whichever comes first. If you set your policy term to coincide with your intended retirement age, you are covered for the entirety of your working life. This is the type of policy I recommend to most clients, because the scenarios that are most financially damaging are precisely the long-term ones — a permanent or very long-duration inability to work.

The NHS statistic that most people find sobering: the average claim duration on income protection policies runs to several years, not weeks. This makes the "long-term vs short-term" distinction one of the most consequential decisions in choosing a policy.

What is a deferred period and how does it work?

The deferred period (also called the waiting period or excess period) is the length of time between when you stop working and when your income protection policy begins paying out. Common options are four weeks, eight weeks, thirteen weeks, twenty-six weeks, and fifty-two weeks.

Choosing a longer deferred period reduces your premium — because the insurer is covering a shorter period of your potential claim. The right deferred period depends on your situation:

• If your employer pays full sick pay for six months, a twenty-six week deferred period means the policy kicks in exactly when employer sick pay stops — you have no gap, and you pay a lower premium than a shorter deferred period
• If you are self-employed with no sick pay at all, a shorter deferred period — four or eight weeks — means you receive income from the policy almost immediately after illness strikes
• If you have savings sufficient to cover three months of expenses, a thirteen-week deferred period balances cost against protection

We always start a protection review by mapping out your existing income sources — employer sick pay, savings buffer, state benefits — and then design the deferred period to complement them, rather than applying a generic recommendation.

Is income protection worth it if I already have sick pay through work?

Yes — for most people — and here is why. Employer sick pay is finite. The most generous employer sick pay schemes typically cover six months at full pay and then six months at half pay. After that, statutory sick pay of £116.75 per week (as of 2026) is all that remains. For a mortgage holder, that sum covers a fraction of a typical monthly mortgage payment.

Income protection can be designed to complement your employer sick pay precisely. By setting a deferred period that matches the end of your employer sick pay, the policy starts the moment your employer's support ends — creating a seamless income stream. The premium for a policy with a twenty-six week deferred period is typically significantly lower than one with a four-week deferred period, making it cost-effective to design the policy around your existing benefits rather than ignoring them.

One important note: if you change jobs, your sick pay provision may change too. Policies should be reviewed whenever employment circumstances change significantly.

What is the difference between income protection and PPI?

Payment Protection Insurance (PPI) became notorious for being mis-sold on a massive scale in the UK — and its reputation coloured many people's view of income protection insurance, which is a completely different product.

PPI was typically sold alongside a specific loan or credit agreement to cover repayments if the borrower could not work. It covered specific repayments rather than income; it was often expensive relative to its benefits; it had restrictive terms and significant exclusions; and it was widely sold to people who did not need it or could not claim on it.

Proper income protection insurance covers a proportion of your total income — not just a specific debt repayment. It is underwritten individually at the point of application, so you know upfront what is and is not covered. It is regulated differently, with FCA consumer protections applying. And it is advised and recommended to you based on a genuine needs assessment rather than sold as an add-on to a credit product.

If you were put off income protection by the PPI scandal, it is worth revisiting the question with fresh eyes — the products are fundamentally different in purpose, structure, and regulation.

Can the insurer cancel my income protection policy?

No — not without cause, once your policy is in force. Most income protection policies are guaranteed renewable, meaning the insurer cannot cancel your policy, increase your premium (beyond any agreed indexation), or change your terms as long as you continue paying the premiums.

The risk that concerns most people — "what if I fall ill and the insurer refuses to cover me for that condition when I renew?" — does not apply to individual income protection policies, because they do not renew annually. Your policy is agreed once, at inception, and runs continuously until the end of its term.

What the insurer can do is decline to pay a specific claim if the illness relates to something that was excluded at the point of application (usually a pre-existing condition that was not disclosed or was specifically excluded). This is exactly why honest and complete disclosure at application time is essential — and why we review your medical history carefully before making any recommendation.

Do self-employed people need income protection?

More than anyone. If you are self-employed and you cannot work, your income stops — immediately, completely, and with no employer safety net. There is no statutory sick pay for the genuinely self-employed (Class 2 NI payers), and Employment and Support Allowance — the main state benefit for those who cannot work — is means-tested and modest.

Yet self-employed people are statistically among the least likely to have income protection in place. The combined facts of no safety net and lower uptake make self-employed workers highly financially exposed to illness or injury.

Insurers do assess self-employed income differently — typically looking at your net profit over the last one to three years, smoothed to account for variable income. For newly self-employed clients, some insurers require a minimum trading period before offering cover. We navigate these nuances and find insurers who are most appropriate for your employment structure.

Does income protection cover redundancy?

Standard income protection insurance does not cover redundancy — it covers inability to work due to illness or injury only. Redundancy cover is a different product (sometimes called Accident, Sickness and Unemployment or ASU insurance).

ASU policies that include unemployment cover typically have significant restrictions: a minimum employment period before a claim can be made, exclusions for voluntary resignation or self-imposed redundancy, and limited claim durations. They are useful for some clients but are not a substitute for long-term income protection against illness and injury.

For most clients, the most valuable protection is against long-term illness — the scenario where you are not made redundant but genuinely cannot work due to health. That is what income protection covers, and it is the risk that most people underestimate.

Mortgage lenders do not legally require you to take out life insurance — but for most people with dependants and a mortgage, some form of life cover is essential rather than optional. The question is not whether to have it, but what type, how much, and how to avoid paying more than you need to. In this guide, I cover the main types of life insurance relevant to mortgage holders, the difference between decreasing and level term policies, whether you need a joint or separate policy, and how pre-existing health conditions are handled.

Do I have to take out life insurance when I get a mortgage?

No — it is not a legal requirement, and lenders cannot insist that you purchase life insurance through them or from a specific provider. However, most lenders will ask whether you have life cover in place, and strongly encourage it.

The practical case for having it is compelling: if you have a mortgage and people who depend on your income, the mortgage does not disappear when you do. Without life insurance, your surviving family could face an impossible choice — find a way to keep paying a mortgage on a reduced income, or sell the home and deal with that disruption on top of bereavement. Life insurance eliminates that problem.

The good news is that for most healthy non-smokers in their thirties or forties, life cover for a mortgage balance is genuinely affordable — often less than the cost of a streaming subscription per month. The cost of not having it is potentially the family home.

What is the difference between decreasing and level term life insurance?

This is the most important life insurance question for mortgage holders, and the answer depends on what you are trying to protect.

Decreasing term life insurance (also called mortgage protection insurance when used for this purpose) has a payout that reduces over time, broadly in line with the outstanding balance on a repayment mortgage. Each year, as your mortgage balance falls, so does the potential payout. The premium is typically lower than level term because the insurer's liability reduces throughout the policy.

Level term life insurance pays the same fixed amount throughout the entire policy term — whether you claim in year one or year nineteen. The payout does not reduce. This costs a little more than decreasing term, but leaves your family with a fixed lump sum that they can use to clear the mortgage and have money left over — or to provide income for a period of time.

Which is right for you? If your only goal is to protect the mortgage balance, decreasing term is the most cost-effective option. If you want to protect both the mortgage and leave something additional for your family, level term makes more sense. Some people have both — a decreasing term policy to cover the mortgage, and a level term policy to provide additional family protection.

What is mortgage protection insurance?

Mortgage protection insurance is essentially decreasing term life insurance sold specifically in the context of a mortgage — the policy term matches the mortgage term, the sum assured starts at the mortgage balance, and it reduces in line with the mortgage. In most cases, the product is structurally identical to a standard decreasing term policy; the branding is just more specific to the mortgage context.

One thing to be aware of: when you take out a mortgage, some lenders or mortgage brokers will try to sell you life insurance at the same time. They are entitled to offer it, but you are not obliged to buy from them — and the policy they offer may not be the most competitive available. We always recommend comparing products from across the market before accepting any protection product offered as part of a mortgage package.

How much life insurance do I need for my mortgage?

At a minimum, your life insurance payout should be sufficient to clear your outstanding mortgage balance at the time of your death, across the entire term of the policy. For a £200,000 repayment mortgage over 25 years, a decreasing term policy starting at £200,000 over 25 years would cover this.

However, it is worth thinking beyond just the mortgage balance. Consider:

• How many years of income replacement would your family need?
• Do you have other significant debts that would need to be cleared?
• Are there children whose education or care costs you want to provide for?
• Would your partner be able to continue working full-time, or would they need to reduce hours to manage childcare?

The right level of cover depends on your circumstances — your income, your family's outgoings, and any employer death in service benefits already in place. We work through these numbers with every protection client rather than simply matching the mortgage balance.

What is the difference between life insurance and critical illness cover?

Life insurance pays out on death (and usually on terminal illness diagnosis, where life expectancy is less than 12 months). Critical illness cover pays out on the diagnosis of specific serious conditions listed in the policy — regardless of whether those conditions are fatal.

The key distinction: critical illness can pay out while you are still alive, at the point of diagnosis. This makes it particularly relevant for conditions like cancer, stroke, or heart attack — where you survive but your ability to work and earn is significantly affected. Life insurance will not pay out in these scenarios unless you have a terminal illness diagnosis.

Many people benefit from having both. Some policies combine life and critical illness in a single product. We compare combined and separate products based on total cost and the specific terms of each policy — some combined products have weaker critical illness definitions than equivalent standalone policies, which matters significantly if you ever need to claim.

How much does life insurance cost for a mortgage holder?

Cost depends on four primary factors: your age, your health (including smoking status), the amount of cover you want, and the policy term.

The factors you can control: stopping smoking (smokers pay roughly double the premium of non-smokers for the same cover — and if you have been non-smoking for 12 months, you qualify for non-smoker rates); maintaining a healthy weight; and applying sooner rather than later. Life insurance premiums increase with age, so the earlier you take out a policy, the lower the premium you lock in for the life of the policy.

The factors you cannot change: your age at application, your medical history, and certain occupational risks. We discuss health and lifestyle openly before approaching any insurer — it allows us to identify which insurer is most likely to offer standard terms for your specific situation, rather than discovering loadings or exclusions at the offer stage.

What happens to my mortgage if I die and have no life insurance?

The mortgage becomes the responsibility of whoever inherits the property — typically a surviving partner or spouse, or your estate if you are single. The lender's claim on the property does not disappear on death; it passes to the beneficiary alongside the asset.

If your partner cannot afford the repayments on their income alone, they will typically need to sell the property to repay the outstanding mortgage. In some cases this is manageable; in others it means selling the family home at an already difficult time.

If there is no surviving partner and the estate is distributed through probate, the mortgage will typically need to be repaid from the proceeds of the estate — often by selling the property.

Can I get life insurance with a pre-existing medical condition?

In many cases, yes — though the terms may vary from a standard policy. Insurers treat pre-existing conditions differently depending on: the nature and severity of the condition; whether it is treated, controlled, or resolved; how long ago it was diagnosed; and whether it has a significant impact on life expectancy.

Some conditions result in a loading (a higher premium than standard). Others result in a specific exclusion (the policy pays out for all causes of death except those related to the specific condition). Some conditions, depending on circumstances, have no impact on terms at all. And some very serious or poorly controlled conditions may mean that standard life insurance is not available, though specialist insurers exist for some categories.

The most important thing with pre-existing conditions is not to give up without proper advice. Different insurers rate the same condition very differently — the insurer who declines one applicant may offer standard terms to another with the same condition, simply based on different underwriting guidelines. We know which insurers are most lenient on which conditions, and we advise before any application is made.

Should I take out joint or separate life insurance policies?

For couples, this is a genuine decision with different implications depending on your situation.

Joint life insurance covers two people on a single policy. It typically pays out on the first death and then ceases. It is usually cheaper than two single policies for the same initial cover.

Two separate single policies cover each person independently. If one person dies, their policy pays out — and the other person's policy continues in force, providing continued protection. This is typically more expensive in total but provides twice the protection over a lifetime.

For most mortgage-holding couples, I tend to favour two separate single policies over a joint policy, for this reason: with a joint policy, after the first death payout (which hopefully covers the mortgage), the surviving partner is left without cover — and at that point, they are older, potentially with health changes that make new cover more expensive or harder to obtain. Two separate policies avoid this gap.

The right answer depends on your circumstances, budget, and the specific policies available. We model both options and present the comparison clearly.

Does life insurance pay out for terminal illness?

Most standard life insurance policies include a terminal illness benefit — a provision that pays out the sum assured early if you are diagnosed with a terminal illness and have a life expectancy of 12 months or less (some policies use 24 months). This allows the funds to be used while you are still alive — to pay off the mortgage, make arrangements for your family, or fund the care you need.

Terminal illness benefit is different from critical illness cover — it requires a prognosis that death is expected within the specified timeframe, whereas critical illness cover pays on diagnosis of a listed condition regardless of life expectancy.

Bridging loans are one of the most misunderstood financial products in the property market. They are not a last resort for desperate buyers — they are a legitimate, fast, flexible financing tool used by homebuyers, property investors, and developers every day to solve timing problems that a standard mortgage simply cannot address. In this guide, I explain exactly what a bridging loan is, how it works, what it costs, and when it is and is not the right solution.

What is a bridging loan and how does it work?

A bridging loan is a short-term, secured loan — typically lasting between one and twenty-four months — designed to "bridge" a gap between two financial positions. It is secured against property (either the property you are buying, a property you already own, or both), and it is designed to be repaid quickly — usually when a property is sold or when longer-term finance is arranged.

The fundamental structure is simple: you borrow a sum of money against a property asset, pay interest on it (usually monthly or rolled up until repayment), and then repay the full amount at the end — either through sale or refinance. The speed of arrangement and the short-term nature of the product are what differentiate it from a standard mortgage.

Bridging loans fall into two regulatory categories:

• Regulated bridging loans: where you or a close family member will live in the property used as security. These are regulated by the FCA, providing consumer protections and access to the Financial Ombudsman Service.
• Unregulated bridging loans: for investment, commercial, or development purposes. These fall outside FCA regulation.

We always establish at the outset which category applies — it affects both the lender pool and the protections available to you.

How much does a bridging loan cost?

This is where bridging loans get a reputation for being expensive — and the reputation is not entirely undeserved, though it needs context. Bridging finance is short-term, fast, and flexible. The cost reflects that.

Bridging loans are priced in monthly interest rates rather than annual rates. Rates vary significantly based on LTV, security quality, exit strength, and lender — but as a guide, you should understand all of the following cost components:

• Monthly interest rate: applied to the outstanding loan balance. This compounds if rolled up (added to the loan rather than paid monthly)
• Arrangement fee: typically 1–2% of the loan amount, payable at the start or added to the loan
• Exit fee: some lenders charge a fee when the loan is repaid; others do not. Worth checking upfront
• Valuation fee: the lender will instruct an independent valuation of the security property
• Legal fees: you will typically pay both your own solicitor and the lender's solicitor

The total cost of a bridging loan should always be calculated as a single all-in figure — not just the monthly rate. A loan with a lower monthly rate but high fees may be more expensive overall than one with a slightly higher rate and no fees. We always present total cost comparisons, not headline rates.

How quickly can I get a bridging loan?

Speed is one of the primary reasons people use bridging finance. In straightforward cases — standard residential security, clean title, cooperative solicitors — funds can sometimes be released in 5 to 10 working days. Two to four weeks is a more typical timeline for standard residential bridging.

Several factors can extend timelines: complex or unusual security (multiple titles, non-standard construction, commercial elements); title issues requiring legal resolution; slow solicitors; and lenders with higher demand and longer processing times. We always identify the fastest lenders for time-critical situations and tell you honestly whether your timeline is achievable before you commit to it.

The fastest bridging cases I have seen completed in under a week. The slowest, involving complex title issues, have taken six weeks. The difference is usually the property's legal position and the solicitors involved, not the lender.

What can a bridging loan be used for?

The most common uses in residential and investment property:

• Chain break: buying your new home before your existing sale completes. This is one of the most common residential uses — you avoid being forced into rental between properties or losing your next purchase
• Auction purchase: auction purchases typically complete within 28 days. Standard mortgages cannot move that fast; bridging can
• Uninhabitable property: mainstream mortgage lenders will not lend on properties without a working kitchen, bathroom, or structural issues. Bridging lenders will — allowing you to purchase, renovate, and then refinance onto a standard mortgage
• Property development: light refurbishment, heavy refurbishment, and conversion projects are commonly funded with bridging or development finance
• Downsizing before selling: buying the smaller property first, then selling the larger one at leisure rather than being forced into a quick sale
• Business cash flow: using property equity to inject cash into a business while waiting for a longer-term refinance
• Divorce settlement: releasing equity quickly when a matrimonial home needs to be dealt with before a sale is possible

What is an exit strategy and why do lenders need one?

Your exit strategy is your plan for repaying the bridging loan at the end of the term. Lenders require a credible, realistic exit before they will approve a bridging application — because the exit is what determines whether they get their money back.

The two most common exits are:

• Sale: you are selling the security property (or another property) and the proceeds will repay the bridge. This is a straightforward exit that lenders understand well.
• Refinance: you will refinance the bridging loan onto a longer-term mortgage once the property is suitable security for mainstream lending (i.e., after renovation, or once you have obtained planning permission, or once your circumstances have stabilised). This exit requires more lender scrutiny — they want to know you are mortgageable on a normal product at the end of the term.

A weak exit — "I think I might sell" or "I assume I can remortgage" without specifics — will either result in a declined application or a higher rate. A strong exit — a property already under offer, or evidence of mortgageability for the refinance — gives lenders confidence and typically results in better terms.

What is the difference between an open and closed bridging loan?

A closed bridging loan has a fixed repayment date — typically because exchange of contracts has already taken place on the sale that will fund repayment. The certainty of the exit allows lenders to offer more competitive terms.

An open bridging loan has no fixed repayment date — it runs for a maximum term, with the borrower repaying whenever their exit event occurs (sale completes, refinance proceeds). Open bridging is more flexible but typically priced slightly higher than closed, reflecting the additional uncertainty for the lender.

In practice, most residential chain-break and auction bridging is open, with repayment happening when the sale completes. Most development and refurbishment bridging is also open, with repayment on refinance.

Can I get a bridging loan with bad credit?

Yes, in many cases — more so than with standard mortgages. Bridging lenders are primarily asset-based lenders: they are primarily concerned with the value of the security property and the strength of the exit, rather than the borrower's credit history. If the asset is strong and the exit is credible, many bridging lenders will overlook credit issues that would disqualify a borrower from mainstream mortgage finance.

That said, the most severe adverse credit (undischarged bankruptcy, very recent repossession) will still limit the lender pool significantly. And some specialist bridging lenders do conduct credit checks and adjust their pricing based on credit profile even if they do not decline on that basis alone.

Do I need a solicitor to take out a bridging loan?

Yes — and you will typically need both your own solicitor and a lender's solicitor. Some lenders use a single firm acting for both parties (dual representation), which can speed things up. The legal process involves: checking the title of the security property; registering the lender's charge; and carrying out the standard property searches.

The quality and speed of your solicitor is often the single biggest factor in whether a bridging loan completes to your timeline. We regularly recommend solicitors we know can move quickly on bridging transactions — this is not the time to use a conveyancer who primarily handles slow-moving residential sales.

A difficult credit history does not automatically mean no mortgage. The specialist mortgage market exists specifically for borrowers who do not meet mainstream lender criteria — and the difference between getting an application declined and getting it approved often comes down to which lender you approach and how you present your case. In this guide, I cover the types of adverse credit that affect mortgage applications, how long they stay on your file, how specialist lenders differ from high street banks, and what you can do to improve your position over time.

Can I get a mortgage with bad credit in the UK?

Yes — in many cases. This is the most important thing to understand. The mortgage market is not binary (good credit = mortgage, bad credit = no mortgage). It is a spectrum of lenders with varying risk appetites, and the specialist end of that market exists specifically to serve people whose credit history does not meet mainstream criteria.

What the specialist market cannot do is make bad credit irrelevant. It will affect the rates available to you (typically higher than mainstream) and usually requires a larger deposit. But in many cases, a mortgage is possible when people have been told — or assumed — that it is not.

The critical first step is a proper assessment of exactly what is on your credit file, how long ago it occurred, and whether it has been satisfied. That determines which part of the specialist market is relevant for you, and which lenders are most likely to consider your application.

Can I get a mortgage with a CCJ or default?

CCJs (County Court Judgements) and defaults are among the most common forms of adverse credit we deal with — and the answer is nuanced.

Key factors that affect whether a lender will consider a CCJ or default:

• Age: How long ago was it registered? Older issues are viewed more favourably. Many specialist lenders become significantly more flexible once an issue is over two or three years old.
• Amount: A CCJ for £200 is treated very differently from one for £20,000
• Status: Satisfied (paid off) CCJs and defaults are viewed much more favourably than unsatisfied ones. If you have an outstanding CCJ, paying it off before applying strengthens your position considerably
• Number: A single default four years ago is very different from multiple recent defaults

Some specialist lenders will consider applications with CCJs or defaults registered in the last 12 months. Others require a minimum of two or three years. We match your specific situation to the right lender rather than applying broadly.

How long does a CCJ or default stay on my credit file?

Both CCJs and defaults remain on your credit file for six years from the date they were registered — regardless of whether you pay them off. Paying off a CCJ or default changes its status from "unsatisfied" to "satisfied," which improves how lenders view it, but does not remove it from your file before the six-year mark.

After six years, the entry drops off your file automatically. This is why the date matters so much in adverse credit mortgage applications — a default that is approaching its six-year anniversary has a very different impact than one that was registered six months ago.

One nuance: some defaults are "re-registered" or have their date updated when an account is sold to a debt collection agency. This can affect the six-year clock. If you have older debts you believe should have dropped off your file, it is worth checking all three credit reference agencies to confirm.

What counts as bad credit for a mortgage application?

The main categories of adverse credit that affect mortgage applications, roughly in order of severity:

• Late or missed payments — one or two missed payments from several years ago may have minimal impact with many lenders, particularly if the account is now closed and paid
• Defaults — registered when an account is closed due to non-payment, typically after three to six missed payments
• County Court Judgements (CCJs) — a formal court judgement that money is owed; more serious than a default
• Debt Management Plans (DMPs) — an informal arrangement with creditors to repay debt at a reduced rate; affects mortgage applications while active and for some time after completion
• Individual Voluntary Arrangements (IVAs) — a formal insolvency arrangement; significant adverse impact, though specialist lenders will consider applications after discharge and with sufficient time elapsed
• Bankruptcy — the most serious category; most specialist lenders require at least three years from discharge, and some require six
• Repossession — previous mortgage repossession is viewed very seriously by most lenders and requires significant time to have elapsed

Will a missed payment stop me getting a mortgage?

Not necessarily — and this is worth knowing because many people with a single missed payment from years ago assume they are ineligible for a mortgage. The impact of a missed payment depends on: how many payments were missed, on which accounts, how long ago, and whether the account was brought up to date and is now performing normally.

Many mainstream lenders will ignore a single missed payment from more than three years ago on a non-mortgage account. More recent misses, or misses on a mortgage account itself, are viewed more seriously. Multiple missed payments suggest a pattern of financial difficulty and carry more weight.

If you have had missed payments in recent years, do not assume the worst — have a proper credit review and find out where you actually stand before concluding that a mortgage is out of reach.

Can I get a mortgage after an IVA or bankruptcy?

Yes, in many cases — but time is the key variable.

For IVAs: some specialist lenders will consider applications while an IVA is still active (though rates and deposits will reflect the heightened risk). Most require the IVA to have been completed for at least one year, and ideally two or three, before considering an application. The larger your deposit, the more options open up.

For bankruptcy: most specialist lenders require a minimum of three years from the date of discharge before considering a mortgage application. Some require the full six years. Deposits of 25–35% are typically required, and rates reflect the risk.

These timelines may feel long, but they are not permanent barriers. I have helped clients get mortgages in situations that seemed impossible based on their credit history — the key is knowing which lender to approach and how to present the application effectively.

Which lenders accept bad credit mortgage applications?

The specialist adverse credit market includes lenders who do not appear on comparison websites and do not advertise directly to consumers. They work exclusively through intermediaries (mortgage brokers) and have their own specific criteria — which differ significantly from one another.

Some specialist lenders focus on defaults and CCJs; others specialise in IVA and bankruptcy discharge cases; others work with applicants who have recent missed payments but otherwise clean files. Knowing which lender suits which specific situation is a core part of what we do. Applying to the wrong specialist lender — or to a mainstream lender when you should be approaching the specialist market — risks an unnecessary declined application, which leaves a footprint on your credit file and makes subsequent applications harder.

How can I improve my credit score before applying for a mortgage?

The most impactful steps, in order of effect:

• Register on the electoral roll at your current address — this is one of the simplest and most impactful improvements
• Pay off or satisfy any outstanding CCJs or defaults — satisfied issues are always viewed more favourably
• Maintain all current credit accounts on time — a consistent recent payment history is the most powerful signal a lender can see
• Reduce credit utilisation — being consistently close to your credit card limit signals financial stress; keeping utilisation below 25–30% of available credit helps
• Avoid new credit applications in the period before applying for a mortgage — each hard search leaves a footprint
• Check for and correct errors on your credit file across all three agencies — errors are common and can be disputed
• Build a credit history if you have a thin file — a credit-builder card used for small purchases and paid in full each month creates a positive payment history

Credit improvement takes time — typically months rather than weeks to show meaningful change. If you are planning to buy in the next 6–12 months, now is the time to start.

Buy-to-let mortgage rules are fundamentally different from residential mortgage rules — and many first-time landlords discover this the hard way after making investment decisions based on incomplete information. In this guide, I cover how BTL mortgages are assessed, how much deposit you need, whether to buy through a limited company, what rental yield you need, and common mistakes that trip up both new and experienced landlords.

How is a buy-to-let mortgage different from a residential mortgage?

The differences are significant and affect almost every aspect of the product:

Deposit requirements: BTL lenders almost universally require a minimum 25% deposit, compared to 5% for residential mortgages. Some lenders accept 20% for standard properties with strong yields, but 25% is the baseline most buyers should plan for.

Affordability assessment: Where a residential mortgage is primarily assessed on your income, a BTL mortgage is primarily assessed on the expected rental income of the property. Lenders apply a rental stress test — typically requiring the rent to cover 125–145% of the mortgage interest payment, calculated at a notional stress rate (often 5.5% or higher, regardless of the actual rate). Your personal income may still be relevant, particularly for first-time landlords or where the property yield is borderline.

Interest rates: BTL mortgages typically carry higher interest rates than equivalent residential products, reflecting the greater risk the lender takes on investment property.

Interest-only availability: Interest-only BTL mortgages are far more widely available than interest-only residential products. Many landlords use interest-only to maximise monthly cash flow, relying on property value appreciation and eventual sale to repay the capital.

Tax treatment: BTL mortgage interest is no longer fully tax-deductible for individual landlords in the way it once was. Since the phased withdrawal of mortgage interest relief, individual landlords receive a basic rate tax credit rather than full deductibility. This has significantly changed the economics of BTL for higher and additional rate taxpayers — and is one reason many landlords now purchase through limited companies.

How much deposit do I need for a buy-to-let mortgage?

As a baseline, plan for 25% of the purchase price. On a £150,000 investment property, that is £37,500.

The deposit you put down affects both which lenders will consider your application and what rate you can access. At 75% LTV (25% deposit), you have access to a wide range of mainstream BTL lenders and competitive rates. At 80% LTV (20% deposit), the range of lenders narrows and rates are typically less competitive. Above 80%, BTL options become very limited.

For HMOs (houses in multiple occupation), multi-unit freehold blocks, or properties in non-standard construction, some lenders will require higher deposits — typically 30–35%. We always check lender criteria against the specific property before recommending a product.

How do lenders calculate how much I can borrow on a buy-to-let?

The key calculation is the Interest Coverage Ratio (ICR) stress test. Lenders take the expected monthly rental income and test whether it covers the mortgage interest at a notional stressed rate — typically 5.5% per annum or higher. The required coverage ratio is usually 125% for lower-rate taxpayers and 145% for higher or additional rate taxpayers (or for applications via limited companies, depending on the lender).

Here is a simplified example: if you want to borrow £120,000 interest-only at a stressed rate of 5.5%, the annual interest would be £6,600 — or £550 per month. At a 125% ICR, you would need £687.50 per month in rent to pass the stress test. At 145%, you would need £797.50.

This is why rental yield matters so much in BTL lending decisions — and why we always run these calculations before you make an offer on an investment property. A property that looks affordable on paper may not pass a lender's stress test, or may only work with a specific lender who uses a lower stress rate.

Do I need to already own a home to get a buy-to-let mortgage?

Most mainstream BTL lenders require you to be a homeowner — either owning outright or with a residential mortgage. They view homeownership as evidence of financial responsibility and property management experience. A smaller number of specialist lenders will consider first-time buyer BTL applications (sometimes called "first-time landlord" mortgages), but the rates and deposit requirements are typically less favourable, and the range of lenders is narrower.

If you are a first-time buyer who wants to invest in property rather than live in it, we can advise on what is available — but it is worth being realistic about the limitations upfront.

Can I get a buy-to-let mortgage through a limited company?

Yes, and this has become increasingly common following the reduction in mortgage interest tax relief for individual landlords. A limited company (specifically a Special Purpose Vehicle or SPV — a company set up specifically to hold property) can still deduct mortgage interest as a business expense, which makes the maths more attractive for higher and additional rate taxpayers.

The mortgage side of limited company BTL is straightforward — many lenders actively offer SPV mortgages. However, rates and arrangement fees are typically slightly higher than for personal ownership, and there are additional costs: company formation and annual filing, accountancy fees, and potential complexities when extracting profits from the company.

The decision between personal and limited company ownership is primarily a tax decision, and I always recommend clients speak to an accountant before making it. The mortgage implications are straightforward; the tax implications require professional advice tailored to your specific situation.

What rental yield do I need to qualify for a buy-to-let mortgage?

There is no single universal minimum yield — it depends on the lender's specific stress test, your tax status, and the LTV. However, as a rough guide:

• At 75% LTV with a 125% ICR at a 5.5% stress rate, you typically need a gross rental yield of around 5.5–6% to pass most lenders' tests
• At 75% LTV with a 145% ICR, you typically need closer to 6.5–7%
• Higher LTVs require higher yields to compensate for the larger loan size

Different lenders use different stress rates, which is one reason why the same property can pass one lender's criteria but fail another's. Knowing which lenders use more generous stress rates for certain property types or tax statuses is part of the broker value — we match your property's yield to the right lender rather than simply applying to the cheapest available rate.

Can I live in a property with a buy-to-let mortgage?

No. This is one of the most important points in BTL mortgage law. A buy-to-let mortgage is specifically for properties you do not intend to live in. If you live in a property with a BTL mortgage, you are in breach of your mortgage terms, and the lender can call in the debt.

The reverse also applies: a residential mortgage does not permit you to let out the property without the lender's consent. If you want to let your residential property, you need to either get the lender's permission (known as consent to let) or switch to a BTL mortgage. Letting a property without the lender's knowledge is mortgage fraud and carries serious consequences.

What happens to my BTL mortgage when my fixed rate ends?

Exactly the same as a residential mortgage — your lender will move you onto their Standard Variable Rate unless you act. BTL SVRs are typically even higher relative to market rates than residential SVRs, making it all the more important to remortgage before your fixed rate expires.

The BTL remortgage market is also an opportunity to release equity as your property value increases — which many landlords use to fund deposits for further purchases, to refurbish and revalue properties, or simply to extract capital from their portfolio.

Can I remortgage a buy-to-let property to release equity?

Yes, provided the rental income still passes the lender's stress test at the new, higher loan amount. This is a common strategy for portfolio landlords who want to grow their portfolios without selling existing properties — releasing equity from one property to use as a deposit on the next.

The calculations need to be run carefully — releasing equity increases your loan amount, which may push you into a higher ICR requirement at a higher stressed rate, potentially making it harder to pass the affordability test. We model these scenarios for landlord clients before any application is made.

Every mortgage has an end date — the point at which your fixed, tracker, or discounted rate expires and your lender moves you onto their Standard Variable Rate. That SVR is almost always higher, sometimes significantly so, than the deal you were on. In this guide, I explain exactly when to start looking to remortgage, what an early repayment charge is and when it applies, whether to stay with your existing lender or switch, and how to borrow more if you need to.

When should I start looking to remortgage?

The answer most people do not expect: four to six months before your current deal ends.

Most mortgage offers are valid for between three and six months from the date they are issued. This means you can often apply for and secure a new mortgage now, with it set to start the day your current deal expires. You lock in today's rates, avoid any gap on the Standard Variable Rate, and give yourself time to switch without rushing.

If you wait until your deal has already ended, you will be paying your lender's SVR while you search and apply — and that can add hundreds to your monthly outgoings for weeks or months. I see this happen regularly with clients who assumed they needed to wait until the last moment. They do not.

The practical calendar: if your deal ends in December, contact a broker in June or July. That gives time for a proper market search, an application, and processing — all without touching the SVR.

Can I remortgage before my fixed rate ends?

Yes — but in most cases, you will face an Early Repayment Charge (ERC) for doing so.

ERCs exist because when you take out a fixed-rate mortgage, the lender is also fixing their cost of funds for that period. If you leave early, they incur a cost. ERCs are typically expressed as a percentage of the outstanding loan balance — often 1–5%, declining year by year through the fixed period. On a £200,000 mortgage, a 3% ERC is £6,000.

That does not always mean it is wrong to leave early. If rates have fallen significantly or your circumstances have changed, the saving from switching to a lower rate can outweigh the ERC — sometimes substantially. We run this calculation for clients regularly and the answer is not always what they expect in either direction.

The critical point: never assume paying an ERC is always wrong, and never assume it is always right. It requires a proper cost-benefit analysis based on your actual numbers.

How long does a remortgage take?

A straightforward remortgage with a new lender typically takes 4 to 8 weeks from application to completion. A product transfer (staying with your existing lender on a new deal) is usually faster — sometimes just a few days, as the lender already holds your information and does not need to instruct a new valuation or conveyancer.

Timelines can extend if: your application is complex (self-employed income, significant changes since your last mortgage, high LTV); the lender's processing times are slower than average; or if you are also borrowing additional funds on top of the remortgage.

Because timelines vary, starting early is the single most important thing you can do to ensure a smooth remortgage. Running out of time often forces borrowers into a product transfer with their existing lender — which may not be the most suitable deal available.

Should I stay with my current lender or switch?

This is the most common question I get from remortgage clients — and the honest answer is: it depends, and you need to run the numbers before deciding.

Staying with your current lender via a product transfer has genuine advantages: it is fast, requires no legal work or new valuation (in most cases), and involves minimal paperwork. If your circumstances have changed since your last application — reduced income, new outgoings, a dip in credit score — your existing lender may also be more accommodating than a new one doing a full underwrite.

However, your existing lender's retention rates are not always their most competitive products, and they know many borrowers will stay out of inertia. A proper market search often finds materially better rates, products with more flexibility, or deals with cashback and free legals that offset the cost of switching.

We compare your existing lender's offer against a comprehensive range of lenders on every remortgage review. Sometimes the product transfer wins. Often it does not. Either way, you will know the answer based on actual figures rather than assumption.

Can I borrow more money when I remortgage?

Yes, subject to meeting the lender's affordability criteria and having sufficient equity in your property. This is called further advance borrowing or additional borrowing at remortgage, and it is one of the most common reasons people remortgage beyond simply chasing a better rate.

Common uses for additional borrowing include:

• Home improvements and extensions — which can also increase the property's value
• Paying off other debts at a lower interest rate
• Funding significant purchases
• Releasing equity to help family members with their own property purchases

Consolidating unsecured debts (credit cards, personal loans) into your mortgage reduces your monthly outgoings in the short term, but it is critical to understand that you are converting short-term debt into long-term secured debt. You may pay less each month, but more in total interest over the life of the mortgage. This requires careful consideration and proper advice before proceeding — it is not always the right decision despite appearing to save money on paper.

How much equity do I need to remortgage?

There is no absolute minimum equity required to remortgage, but your loan-to-value ratio significantly affects which lenders will consider your application and what rates are available.

Most mainstream lenders will remortgage up to 90% LTV (meaning you need at least 10% equity). Above 90% LTV, options become more limited. A small number of specialist lenders will consider 95% LTV remortgages, but rates are typically less competitive.

Importantly, the value your property is attributed at the point of the remortgage valuation can work in your favour or against you. If property values in your area have risen since you bought, your LTV may now be lower than when you originally took out the mortgage — potentially giving you access to a better LTV band and more competitive rates. If values have fallen, the reverse applies.

What documents do I need to remortgage?

For a standard remortgage application, you will typically need:

• Proof of identity (passport or driving licence)
• Proof of address (utility bill or bank statement, usually within the last three months)
• Last three months' payslips (employed) or two to three years' accounts or SA302s (self-employed)
• Last three months' bank statements
• Your most recent mortgage statement
• Details of any other credit commitments

We prepare clients for this document list in advance and review everything before submission — a complete, well-presented application is far less likely to stall in underwriting than an incomplete one.

Is now a good time to remortgage? Should I fix for 2 or 5 years?

I am going to give you the honest answer rather than the one that sounds reassuring: nobody knows for certain where interest rates will be in two, three, or five years — not economists, not banks, and not mortgage brokers. Anyone who tells you otherwise is speculating, not advising.

What I can help you think through is the personal trade-off between certainty and flexibility. A two-year fixed rate gives you certainty for two years, after which you review again. A five-year fix gives you five years of certainty, but typically at a marginally higher rate, and with potentially higher ERCs if your circumstances change. A tracker mortgage moves with the Bank of England base rate — potentially beneficial if rates fall, painful if they rise.

The right choice depends on your personal circumstances: how long you plan to stay in the property, whether you might need to make significant changes in the next few years (move, start a family, change employment), and your appetite for rate risk. We work through this with every client before recommending a product term — there is no single right answer that applies to everyone.

Buying your first home is one of the most significant financial decisions you will ever make — and one of the most confusing. Between deposits, mortgage types, government schemes, surveys, and solicitors, it can feel impossible to know where to start. In this guide, I answer the questions I hear most often from first-time buyers: what you need to save, how much you can borrow, what a Decision in Principle actually is, and what happens from the moment your offer is accepted through to getting your keys.

How much deposit do I need as a first-time buyer?

The minimum deposit most mortgage lenders will accept is 5% of the purchase price. On a £250,000 property, that is £12,500. However, the deposit you put down has a significant impact on the mortgage deals available to you — a concept called the loan-to-value (LTV) ratio.

The lower your LTV, the less risk you represent to the lender, and the more competitive the interest rates you can access. A buyer with a 10% deposit (90% LTV) will typically access better rates than one with 5% (95% LTV). A buyer with 25% (75% LTV) will have access to the most competitive deals of all.

This does not mean you need to wait until you have 25% saved. Thousands of first-time buyers buy successfully with 5–10% deposits every year. But it is worth understanding how your deposit size affects your monthly repayments and total cost — something we work through with every first-time buyer we advise.

How much can I borrow based on my salary?

Most lenders use an income multiple as a starting point — typically 4 to 4.5 times your gross annual income, though some will lend up to 5 or 5.5 times income in certain circumstances. For a joint application, they generally use a combined income multiple.

However, the income multiple is just the starting point. Lenders also run a detailed affordability assessment — looking at your committed expenditure (credit cards, car finance, student loans, subscriptions), your household costs, and whether you could still afford the mortgage if interest rates rose significantly above the current level. This stress test is called the affordability check, and it means two people earning identical salaries can receive very different mortgage offers depending on their outgoings.

Self-employed applicants, those on variable or commission-based income, contractors, and those with complex income structures may find the process more involved — lenders assess these applications differently, and working with a broker who understands how to present your income accurately to the right lender is particularly valuable.

The best way to know your real borrowing figure is to have a proper conversation with a mortgage adviser rather than relying on online calculators. The calculators give you a broad sense of scale, but they do not factor in your actual financial picture.

What is a Decision in Principle, and do I actually need one?

A Decision in Principle (DIP) — also called an Agreement in Principle (AIP) or Mortgage in Principle — is a written indication from a lender that they would, in principle, be prepared to lend you a specified amount. It involves a basic credit check and income assessment, but it is not a full mortgage application and does not guarantee you will be approved.

Yes, you need one. Most estate agents will not accept an offer on a property without one. It shows sellers and estate agents that you are a credible, financially prepared buyer rather than a time-waster. In competitive markets — particularly for desirable properties in the North West — having your DIP ready to present with an offer can genuinely make the difference.

It is worth noting that some lenders conduct a hard credit search for a DIP (which leaves a footprint on your credit file) while others use a soft search (which does not). We always aim to use soft search DIPs wherever possible, to protect your credit score during the searching and offering stage.

What government schemes are available to first-time buyers?

Several government-backed schemes exist specifically to help first-time buyers get onto the ladder. The landscape changes periodically, so it is always worth checking which are currently active — but here is an overview of the key schemes as of 2026:

Shared Ownership

Shared Ownership lets you buy a share of a new-build or resale property — typically between 10% and 75% — and pay rent on the remaining share (which is owned by a housing association). Over time, you can buy additional shares in a process called staircasing, until you own the property outright. The advantage is a significantly smaller deposit requirement (based on the share you are buying, not the full property value). The trade-off is that you will be paying both a mortgage and rent simultaneously, and there are restrictions on selling.

Lifetime ISA (LISA)

The Lifetime ISA allows you to save up to £4,000 per year, with the government adding a 25% bonus — up to £1,000 per year. Funds can be used towards a first home purchase (on properties up to £450,000) or for retirement from age 60. The LISA must have been open for at least 12 months before you use it for a property purchase. If you have one, the bonus can make a meaningful difference to your deposit — a couple each with a maxed-out LISA could accumulate over £30,000 in total government bonuses over several years.

First Homes Scheme

First Homes is a scheme that offers new-build homes to first-time buyers at a discount of at least 30% below market value. Local authorities can apply higher discounts for key workers or local buyers. The discount carries over when you sell, meaning the property remains affordable for future first-time buyers. Availability depends on whether your local area has participating developments.

Not every scheme suits every buyer. We always review your circumstances and advise on which, if any, of the available schemes work in your favour — sometimes the open market with a straightforward mortgage is the better route.

Repayment mortgage vs interest-only: what is the difference?

With a repayment mortgage, each monthly payment covers both the interest charged and a portion of the capital you borrowed. At the end of the term, the mortgage is fully paid off and you own the property outright. This is by far the most common mortgage type for residential buyers.

With an interest-only mortgage, your monthly payments cover only the interest — the capital balance stays the same throughout the term. At the end, you need a separate plan (called a repayment vehicle) to repay the full original loan. Interest-only mortgages are now very rarely available to residential buyers without significant equity or assets. They remain common in the buy-to-let market.

For first-time buyers, repayment is almost always the right choice — you are building equity in the property with every payment, and you will own it outright at the end of your term.

How does stamp duty work for first-time buyers?

Stamp Duty Land Tax (SDLT) thresholds change periodically, so always check the current rates at GOV.UK before budgeting. As of 2026, first-time buyers benefit from stamp duty relief on properties up to a certain value — this threshold has varied over time. For purchases above the relief threshold, stamp duty applies on the portion above it at the standard rates.

The key practical point: stamp duty is an upfront cost paid on completion, not added to your mortgage. It needs to be budgeted for separately from your deposit. Your solicitor will calculate the exact amount due for your specific purchase and advise you accordingly.

What credit score do I need to get a mortgage?

There is no universal minimum credit score required for a mortgage, because different lenders use different credit reference agencies and have different internal scoring models. What matters is not a specific number but the overall picture your credit history presents.

Lenders look at: payment history (missed or late payments); the level of existing debt relative to available credit; how long your credit history is; the number of recent credit applications (hard searches); and whether you have any county court judgements (CCJs), defaults, IVAs, or bankruptcy on record.

Before applying, it is worth checking your credit reports across all three main agencies — Experian, Equifax, and TransUnion. Errors on credit files are more common than most people realise, and correcting them before applying can make a significant difference. We review credit files with clients as part of our initial consultation.

How long does the mortgage and buying process take?

The process from having an offer accepted to completing a purchase typically takes 8 to 16 weeks, though it can be faster for straightforward transactions or slower for long chains. Here is a rough breakdown:

• Mortgage application to offer: 2–4 weeks, depending on the lender and the complexity of your application
• Survey and valuation: usually instructed by the lender as part of the application; typically completed within 1–2 weeks of instruction
• Legal conveyancing: the biggest variable; 6–12 weeks is common, but chains and complex titles can extend this significantly
• Exchange to completion: usually 1–4 weeks after exchange of contracts

The practical implication: do not book time off work, give notice on your rental, or make other arrangements based on an optimistic timeline. Keep in close contact with your solicitor and be ready to act quickly when they need information from you — delays from buyers are one of the most common causes of extended timelines.

Can I get a mortgage on my own with one income?

Absolutely. Solo mortgage applications are very common and are assessed on exactly the same criteria as joint applications — income, outgoings, deposit, and credit history. The main practical difference is that with one income, the maximum you can borrow will typically be lower than a joint application, which affects the price range of property you can access.

There are options that can help solo buyers access higher loan amounts, including joint borrower sole proprietor mortgages (where a parent or other family member is on the mortgage for affordability purposes but not on the title deeds). This is a specialist area and worth discussing if you feel your solo income is limiting your options.

What other costs do I need to budget for besides the deposit?

The deposit gets most of the attention, but there are several other costs first-time buyers need to budget for:

• Stamp Duty Land Tax — depends on purchase price and applicable relief (see above)
• Solicitor / conveyancer fees — typically £1,000–£2,000 plus disbursements (searches, land registry fees)
• Survey — ranges from a basic mortgage valuation (often included by the lender) to a full structural survey; a HomeBuyer Report typically costs £400–£700; a full Building Survey £600–£1,500 depending on property size
• Mortgage arrangement fee — some mortgage products carry an arrangement fee; others are fee-free. We always compare the total cost including fees, not just the headline rate
• Removal costs — often overlooked until it is too late to budget properly
• Buildings and contents insurance — lenders require buildings insurance to be in place from exchange of contracts, not just completion

As a rough guide, budget an additional 2–3% of the purchase price for these costs on top of your deposit.