Mortgages Made Simple. Mortgage Roadmap for Home Buyers and Homeowners

Liam Drummond
Apr 23, 2025
3 min read

Updated: Jan 1

Mortgages often feel complicated, not because they are impossible to understand, but because the information people find online is usually fragmented. You are given answers to individual questions, but rarely a clear picture of how everything fits together.

Whether you are buying your first home, moving house, remortgaging, or investing in property, understanding how mortgages work will help you make better decisions and avoid costly mistakes.

This guide is designed to be your starting point and reference page, giving you clarity on the mortgage process and directing you to more detailed guidance where it matters.

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How Mortgages Really Work

At its core, a mortgage is a long-term loan secured against a property. You repay it monthly over an agreed period, with interest added. While that sounds straightforward, lenders assess far more than just income.

When reviewing a mortgage application, lenders consider:• Sustainable affordability, not just headline earnings• Credit behaviour over time• Deposit size and source• Property type and location• Long term financial stability

This is why two people with similar incomes can receive very different mortgage outcomes.

Borrowing Power and Deposits Explained

One of the most common questions people ask is how much they can borrow. While income is important, it is only one part of the picture.

Many lenders will lend around four to four and a half times income, but this can vary depending on:

• Employment type• Bonus or variable income

• Existing financial commitments

• Credit history

• Mortgage term

Deposit size also plays a significant role. While smaller deposits are available, larger deposits often unlock better rates and more flexibility.

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Mortgage Agreements in Principle and Why They Matter

A Mortgage Agreement in Principle shows how much a lender may be willing to lend based on an initial review of your finances. It is not a full mortgage offer, but it plays an important role in the buying process.

Many estate agents expect buyers to have one in place before accepting offers. It also helps ensure you are viewing properties within a realistic budget.

If you want to understand the difference between an Agreement in Principle and a full mortgage offer, this guide explains it clearly.

👉 mortgage-in-principle-vs-full-offer

Different Mortgage Journeys and Where You Fit

Not everyone approaches a mortgage from the same position. Understanding where you sit helps ensure you receive the right advice from the start.

First-Time Buyers

First-time buyers often focus on affordability, deposit planning, and understanding the buying process. Clear guidance early on can remove much of the stress.

Our First Time Buyer Mortgage page explains the process step by step, from early planning through to completion.

👉 first-time-buyer-mortgages

Moving Home

Home movers often need to balance selling and buying while managing an existing mortgage. Timing, chains, and lender criteria all matter.

Mortgage advice at this stage focuses on affordability, flexibility, and planning for the next phase of life.

Remortgaging

Remortgaging is often about reducing monthly payments, fixing certainty, or releasing equity. It can also be an opportunity to review whether your current mortgage still suits your circumstances.

If your rate is ending or you want to review your options, our Remortgage page explains how this works.