How to arrange a mortgage for your home

Determine Your Affordability

Understand how much you can afford by evaluating your income and expenses. Typically, you can borrow up to three times your annual salary but this will vary dependent on the lender. Factor in all monthly costs and consider how interest rate changes might impact your repayments.

Saving for a Deposit

You’ll need to cover part of the property’s price yourself, as banks generally lend up to 90% of the purchase price. A larger deposit can lead to better mortgage rates and helps prevent negative equity.

Types of Mortgages

Repayment Mortgages: Monthly payments cover both the loan and interest and the loan is fully repaid by the end of the term.

Interest-Only Mortgages: Payments cover only the interest, with the loan principal due at the end of the term. This option requires separate savings to repay the capital.

Applying for Your Mortgage

Apply early to secure a mortgage in principle. You’ll typically need to provide proof of income, bank statements and proof of address. A strong credit score is crucial to avoid rejections. If denied, address any issues or consult the Financial Ombudsman Service if necessary.

For tailored mortgage advice, our partner, Mortgage Advice Bureau, offers expert support to help you find the best mortgage options for your needs.