Mortgages in the UK
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Choosing from the many mortgages in the UK can feel overwhelming. This page gives you a clear starting point: how a mortgage works, what lenders look at, and where to go next for guides on the type of mortgage you need.
Find the right mortgage for you
The right mortgage depends on your situation. Start with the guide that matches yours.
First-time buyer mortgages
Deposits, stamp duty, government schemes, and how to apply when you are buying your first home.
Read the guide →Mortgages explained
A plain-English guide to fixed, tracker, and other types of mortgages, and how repayment and interest-only differ.
Read the guide →Remortgage
What to know when your deal is ending, what it can cost, and how to switch to a new rate.
Read the guide →Remortgage calculator
Compare your current monthly payment with a new deal and see the effect of fees.
Try the calculator →Remortgage costs
Every fee explained, from product and legal fees to early repayment charges, with typical amounts.
Read the guide →Mortgage calculator
Estimate your monthly payments before you speak to a lender or adviser.
Use the calculator →Get a free quote
Tell us a little about your plans and we can help you compare your options.
Start your quote →How mortgages in the UK work
A mortgage is a loan used to buy a property, and it is secured against that property. You pay a deposit, borrow the rest from a lender, and repay it, plus interest, over a set term. Most terms are 25 to 35 years.
Getting a mortgage usually follows these steps:
- Work out your budget. Look at your income, regular costs, and how large a deposit you have.
- Check your credit report. Fix any errors and make sure you are on the electoral register.
- Get an agreement in principle. This gives you an idea of what a lender may offer.
- Compare mortgage deals. Look at the rate, fees, and how long the deal lasts, not just the headline rate.
- Apply, then complete. The lender values the property, your solicitor handles the legal work, and once contracts are exchanged you complete and get the keys.
What lenders look at
Before offering a mortgage, lenders check that you can afford the repayments. They usually consider:
- your income and how stable it is
- your regular outgoings, debts, and credit commitments
- your credit history
- the size of your deposit
- the property you want to buy
Most lenders ask for a deposit of at least 5%, though a larger deposit usually gives you access to lower rates. They often offer around four to four and a half times your annual income, and some go higher in certain cases.
Costs to plan for besides the deposit
- Stamp duty (or the equivalent tax in Scotland and Wales)
- Solicitor or conveyancer fees
- Valuation and survey costs
- Mortgage arrangement or product fees
- Moving costs
For current first-time buyer stamp duty rates, see our guide to first-time buyer mortgages.
How we can help
We help you understand your options and compare mortgages that may suit your circumstances, so you can decide with confidence. You can use our mortgage calculator to estimate your payments, then get a free quote when you are ready.
Mortgages: FAQs
How do mortgages work in the UK?
A mortgage is a loan secured against a property. You pay a deposit, borrow the rest from a lender, and repay it with interest over a set term, often 25 to 35 years. If you do not keep up repayments, the lender can take back the property.
How much deposit do I need for a mortgage?
Most lenders ask for at least 5% of the purchase price. A larger deposit usually gives you access to lower interest rates.
How much can I borrow for a mortgage?
Lenders often offer around four to four and a half times your annual income, and some go higher in certain cases. They also check your outgoings, debts, and credit history.
Do I need a mortgage adviser?
You do not have to use one, but an adviser can compare options across lenders and explain which suit your circumstances, which many people find helpful, especially if it is their first mortgage.