Mortgage FAQs

A first-time buyer is someone who has never owned a home, in the UK or abroad, either outright or with a mortgage. Inheriting a share of a property can also affect your status. Lenders and government schemes each apply their own definition, so the exact rules can vary.

Most lenders ask for a minimum deposit of 5% of the purchase price, and a small number offer mortgages with no deposit at all. A bigger deposit opens up more lenders and products, although what’s available depends on each lender’s criteria and your circumstances.

Yes. A small number of lenders offer 100% mortgages, sometimes called 0% deposit mortgages. Criteria are stricter, with affordability, credit history and sometimes rental history all checked closely. Certain products also rely on a family member’s savings or property as extra security.

A guarantor mortgage is where a family member agrees to cover the repayments if you can’t. Some versions use a relative’s savings or property as extra security instead. Not every lender offers them, and the guarantor takes on real financial risk.

This type of mortgage lets a family member join the loan to help with affordability without going on the property’s title deeds. Parents often use it to help children buy. Only some lenders offer it, and age and income limits for the extra borrower vary.

Yes. A Lifetime ISA can go towards buying a first home, with the government adding a bonus to what you save. Withdrawal rules, property price limits and conveyancer requirements all apply, and the current rules are set out on GOV.UK.

Shared ownership lets you buy a share of a home, typically between 10% and 75%, and pay rent on the rest to a housing association. You only need a mortgage for your share. Buying further shares later is known as staircasing.

Yes. Friends can buy together on a joint mortgage, with both incomes counted for affordability. Everyone named is responsible for the whole mortgage, not just their share. A declaration of trust can record how much each person has put in.

Lenders use the electoral roll to confirm your identity and address. Not being registered doesn’t rule out a mortgage, but it can cause problems with some lenders’ checks. Registering is free and can be done online through GOV.UK.

It varies a lot from purchase to purchase. The mortgage can often be agreed fairly quickly, while the overall timeline depends on the property, the solicitors, searches and whether there’s a chain. Chain-free and new build purchases can move at a different pace.

Lenders typically lend between 4 and 5.5 times your income, and some go up to 6 times for certain incomes or professions. The final figure comes from an affordability check of your income, outgoings, debts and credit history, so it varies between lenders.

Yes, some lenders go to 5 times income or more, usually with minimum income levels or for specific professions. Some also ask for a larger deposit. Whether it’s possible depends on each lender’s criteria and your circumstances.

Loan to value is the size of your mortgage as a percentage of the property’s value. A £180,000 mortgage on a £200,000 home, for example, is 90% LTV. Products are priced in LTV bands, so your LTV affects which deals are available.

Yes, many lenders accept a gifted deposit, usually from a close family member. Whoever gives it normally signs a gift letter confirming it isn’t a loan and doesn’t need repaying. Gifts from friends are accepted by some lenders too, but criteria vary.

Mainstream lenders don’t usually accept a deposit funded by a personal loan or credit card, because it adds to your debts and affects affordability. A small number of specialist lenders may consider it. Any borrowed deposit has to be declared on the application.

Deposits can come from savings, a gift, equity in a property you’re selling, an inheritance or a Lifetime ISA. Wherever the money comes from, lenders want evidence of its source, usually through bank statements, to meet anti-money laundering rules.

Yes. Anti-money laundering rules mean lenders and solicitors must confirm where your deposit came from. Bank statements showing the money building up are normally needed, along with paperwork for any gift, sale or inheritance.

An affordability check is how a lender works out whether the mortgage payments are manageable for you. It looks at income, regular spending, debts, dependants and credit commitments, then tests whether payments would still be affordable if interest rates rose.

Yes. Monthly payments on loans, car finance and credit cards reduce the amount left over for a mortgage, so they can lower how much a lender will offer. Student loan repayments are taken into account by most lenders as well.

Terms of up to 35 years are widely available, and some lenders go up to 40. A longer term lowers the monthly payment but increases the total interest paid. Your age at the end of the term also matters, and maximum ages vary by lender.

Yes, it's possible from the first day of a new job with some lenders, particularly if you’ve stayed in the same line of work. Others want you to have passed probation or completed a set period. Your employment history and each lender’s criteria decide which options are open.

Yes, being on probation doesn’t rule you out with some lenders, often if you have a history in the same industry. Others wait until probation ends. Your contract, notice terms and previous employment all play a part in which lenders are available.

Bonus, overtime and commission can be counted by many lenders, usually if it’s regular and you can show a track record. An average over one or two years is common, while other lenders only take a percentage. It varies from lender to lender.

Yes, zero-hours income can be used, usually with a track record of consistent earnings. Income is often averaged across that period. Fewer lenders offer this, so the choice of lender matters more than usual.

Yes. Lenders often assess your income based on what you’ll earn when you return to work, provided there’s a confirmed return date. Affordability during the leave period is usually checked too. Criteria vary between lenders.

Certain benefits can count as income with some lenders, such as Child Benefit, Universal Credit or disability benefits. Which benefits count, and how much of them, varies widely. Applications based on benefits alone are considered by a smaller number of lenders.

Yes. Income from a second job can be counted, usually if you’ve held it for a set period and it looks sustainable. Some take the full amount, others a percentage. Total working hours can also be considered.

Yes. Contractors are often assessed on their day rate, multiplied up to an annual figure, while agency workers may need a track record of earnings. Each lender sets its own rules on contract length and time in the industry.

Two years of accounts or tax calculations is a common requirement, and some lenders will consider one year. Applicants with less history may be considered by a small number of lenders, depending on their criteria and your circumstances, such as working in the same field beforehand.

An SA302 is a tax calculation from HMRC showing your income and the tax due for a tax year. Lenders usually ask for SA302s alongside the matching tax year overviews to verify self-employed income. Both can be downloaded from your HMRC online account.

For sole traders, lenders usually use net profit. Limited company directors are often assessed on salary plus dividends, though some lenders use salary plus share of net profit instead. Two-year averages are common, as is using the latest year when it’s lower.

Yes. Some lenders use your share of the company’s net profit, including profit left in the business, rather than just salary and dividends. This can increase the income used for affordability. Not all lenders offer it, and criteria vary.

Yes, it can still be possible, though many lenders will use the lower, latest figure. Why profit fell, and whether it has recovered, is considered by some lenders. Your options depend on each lender’s criteria and the reasons behind the drop.

Not always. Lenders mainly need your SA302s and tax year overviews, which come from HMRC. Accounts certified by a qualified accountant are requested by some lenders, so having one can widen the choice.

Yes. CIS workers are treated either as employed, using recent payslips, or as self-employed, using tax returns, depending on the lender. Being assessed as employed can mean less trading history is needed.

Yes. Sole traders are assessed on the net profit shown in their tax calculations. One or two years of figures are usually needed, and the trend in your profit matters. Criteria differ from lender to lender.

Yes. Defaults, CCJs, missed payments, debt management plans and IVAs are all considered by certain lenders. It all depends on what the issue was, when it happened, whether it’s settled and each lender’s criteria. Specialist lenders often have wider criteria than high street banks.

Yes, a default isn't an automatic no. They usually look at how many there are, the amounts, how recent they are and whether they’re satisfied. Your full credit profile and each lender’s criteria decide what’s possible.

Yes, a CCJ doesn’t automatically rule out a mortgage. Lenders look at the value, the date and whether it has been satisfied. Criteria differ between lenders, and some specialist lenders will consider recent or unsatisfied CCJs.

Yes, whether the debt management plan is still active or already completed, depending on the lender. A record of plan payments being kept up is often requested. Options depend on your credit profile and each lender’s criteria.

Yes, it may be possible, depending on whether the IVA is active or completed and on each lender’s criteria. Some specialist lenders will consider an active IVA, while others only look at applicants once it’s complete.

Yes, once a bankruptcy has been discharged, specialist lenders can consider you. When it happened and how your credit has been managed since are both taken into account. Depending on the lender, a bigger deposit may be needed.

Not necessarily. Lenders look at how many payments were missed, what they were for and how recent they are. Your full credit history and each lender’s criteria decide which options are available.

Defaults and CCJs stay on your credit file for six years from the date they were registered, even once paid. After six years they drop off automatically. Settling them still updates their status, which lenders can see.

No. Lenders don’t see the score shown by credit reference agencies like Experian, Equifax or TransUnion. Instead, they see the data in your credit report and run it through their own scoring, which is why one lender can decline an application another accepts.

A soft search lets a lender check your file without leaving a mark other lenders can see. Hard searches are recorded on your file and are usually done at full application. Several hard searches in a short time can affect future applications.

Yes, there are a smaller number of specialist lenders who consider applicants with a previous repossession. When it happened, the circumstances and how your finances have been managed since are all looked at. Expect a bigger deposit to be required in most cases.

Yes, and checking your statutory credit report with each of the three main agencies is free. Seeing all three matters, because lenders may use different agencies and the information held can differ between them.

An agreement in principle is a statement from a lender saying how much it may be willing to lend, based on initial checks. Estate agents often ask for one before accepting an offer. It isn’t a guarantee of a mortgage, and the full application comes later.

Most agreements in principle last between 30 and 90 days, depending on the lender. If yours expires before you find a property, a new one can usually be arranged. Lenders differ on whether they use a soft or hard credit search at this stage.

It depends on the lender. Some use a soft search, which other lenders can’t see, while others use a hard search that’s recorded on your file. A broker can find out which type of search a lender uses before applying.

Typical requirements are photo ID, proof of address, three months of payslips, three months of bank statements, your latest P60 and proof of deposit. Self-employed applicants usually provide SA302s and tax year overviews instead of payslips. Requirements vary by lender.

The time from full application to mortgage offer varies by lender, case complexity and how quickly documents and the valuation are completed. Complex cases, such as self-employed income or bad credit, can take longer than straightforward ones.

The lender instructs a valuer to confirm the property is worth what you’re paying and is suitable security for the loan. It’s for the lender’s benefit rather than yours, and isn’t a full survey. A low valuation can change how much the lender will offer.

A down valuation is when the lender’s valuer says the property is worth less than the agreed price. Lending is then based on the lower figure, so the gap has to be covered by a bigger deposit, a lower price or a different lender.

A survey isn’t required by lenders, but it tells you about the property’s condition, which a valuation doesn’t. RICS Home Surveys come in three levels, from a basic condition report to a detailed building survey for older or unusual homes.

A mortgage offer is the lender’s formal confirmation that it will lend, once underwriting and the valuation are complete. It sets out the loan amount, rate, term and conditions. Offers are usually valid for around three to six months, depending on the lender.

Underwriting is the lender’s detailed review of your application. An underwriter checks your income, outgoings, credit history and documents against the lender’s criteria, and may ask for more information before deciding whether to issue an offer.

Yes. A lender can withdraw an offer if your circumstances change, such as losing your job or taking on new debt, or if information on the application turns out to be wrong. Changes before completion need to be declared to the lender.

Exchange is when contracts are swapped and the purchase becomes legally binding, usually with your deposit paid. Completion is when the money transfers, the seller moves out and you get the keys. The gap between the two can be days or weeks.