Most Asked Mortgage Questions UK – Answered by a Mortgage Broker (2026 Guide)

These are the questions we get asked most often at Drummonds Finance Group. Some are from first-time buyers just starting out. Some are from landlords, people coming off fixed rates or borrowers who have hit a wall somewhere in the process. We have tried to answer each one properly rather than just giving you a vague two-line response. If your specific situation is not covered here, call us and we will give you a straight answer.

1. How much can I borrow?

Most lenders use a multiple of your annual income as the starting point, typically between four and four and a half times your gross income, though some will lend five times or more if your credit profile is strong and your deposit is healthy. Income multiples are not the whole story, though. Lenders also run an affordability assessment that looks at your committed outgoings, credit balances, childcare costs, student loans and regular spending patterns. Two people with the same salary can get significantly different mortgage offers depending on their monthly commitments. The best way to get an accurate figure is to speak to a broker who can run a proper assessment rather than relying on an online calculator, which will almost always give you an optimistic number.

2. What deposit do I need?

The minimum deposit for a residential mortgage is 5% of the purchase price, which gives you access to 95% loan-to-value products. However, a 10% deposit opens up a significantly wider range of lenders and usually comes with better rates. Once you get to 25% or above, you are accessing the most competitive products the market offers. For buy-to-let mortgages, lenders typically want 20% to 25% as a minimum, and some specialist buy-to-let products require more. If your deposit is coming from family, a gifted deposit is well established and widely accepted, provided it is properly documented.

3. What is the difference between a fixed rate and a tracker?

A fixed-rate mortgage locks your interest rate for an agreed period, typically two or five years, which means your monthly payment stays the same regardless of what happens to the Bank of England base rate. A tracker mortgage moves up and down in line with the base rate, so your payment can change. Trackers are sometimes cheaper when rates are falling or expected to fall, but they carry more risk. Most borrowers in the current climate are choosing fixed-rate deals for the predictability they offer, particularly with the uncertainty around rates following the Iran conflict in early 2026. Read our guide on whether to fix your mortgage right now for a more detailed breakdown.

4. Can I get a mortgage if I am self-employed?

Yes, absolutely. Being self-employed does not stop you from getting a mortgage; it just means the lender assesses your income differently. Most lenders ask for two years of accounts or SA302 tax calculations, though a growing number will accept one year. If you are a limited company director, some lenders use salary plus dividends, while others use salary plus net profit, which can make an enormous difference to how much you can borrow. Contractors are often assessed on their day rate rather than declared income. The key is using a broker who knows which lender's assessment method works best for your specific income structure, because getting this wrong can cost you tens of thousands of pounds in borrowing capacity.

5. Can I get a mortgage with bad credit?

Yes. Having adverse credit, missed payments, defaults, CCJs, or a low credit score does not automatically disqualify you from getting a mortgage. It does narrow the field of suitable lenders and will usually mean a higher rate than someone with a clean profile. The impact depends heavily on how recent the issue was and how large the amount involved. A single missed payment three years ago is treated very differently from a CCJ from last year. Some specialist lenders have very flexible criteria for adverse credit cases. We work in this area regularly and will tell you honestly what is achievable for your specific history rather than wasting your time.

6. How long does a mortgage application take?

From submitting a full application to receiving a formal mortgage offer typically takes one to three weeks with most mainstream lenders, though this varies considerably. The main variables are how quickly the lender processes applications, how long the valuation takes to be arranged and returned, and how promptly you provide any additional documents the lender requests. Some lenders are faster than others, and we factor this into our lender recommendations, particularly when clients have tight deadlines. Complex cases, specialist lenders or unusual properties can take longer. A product transfer with an existing lender, such as a BM Solutions rate switch or a TML product transfer, is usually completed in a matter of days.

7. What documents will I need?

For most standard applications, you will need photo ID, proof of address, three months of bank statements, three months of payslips, your most recent P60 and evidence of your deposit. If you are self-employed, you will typically need two years of accounts or SA302 tax calculations and tax year overviews from HMRC. If your deposit includes a gift from family, you will need a gifted deposit letter. For buy-to-let applications, the lender will also want details of the property and expected rental income. We go through the document requirements with every client before we submit anything, so there are no surprises mid-application.

8. What is a mortgage in principle?

A mortgage in principle, also called a decision in principle or an agreement in principle, is a preliminary assessment from a lender confirming they would likely lend you a specific amount based on your income and a soft credit check. It is not a full mortgage offer, and it does not guarantee lending, but it is very useful for two reasons. First, it gives you a realistic budget before you start viewing properties. Second, estate agents take offers from buyers with a mortgage in principle more seriously than those without one. In a competitive market like Bicester or Oxford, having one in place before you make an offer can make a genuine difference. We can arrange one quickly for most clients, often the same day.

9. How much are mortgage fees?

There are several different costs involved in getting a mortgage, and it is important to understand them all rather than just focusing on the interest rate. Lender fees include arrangement or product fees, which can range from nothing to £2,000 or more, depending on the product. Some products have no fee but a slightly higher rate, while others have a fee and a lower rate. We always compare the total cost rather than just the headline rate. On top of that, you will pay for a valuation, solicitor fees, stamp duty and a broker fee. Our standard fee is £899, up to £1,250 for more complex cases, and all fees are discussed and agreed before any work begins.

10. How does remortgaging work?

Remortgaging means switching your existing mortgage to a new deal. That can be with your current lender, which is called a product transfer, or with a new lender entirely. The most common reason to remortgage is that your current fixed-rate or tracker deal is ending and you want to avoid rolling onto your lender's Standard Variable Rate, which is almost always significantly more expensive. You can also remortgage to release equity, consolidate debt, extend or reduce your term, or simply because a better deal is available elsewhere. We compare both options for every client and give you an honest view of which saves you more money. Read our guide on remortgaging in 2026 for more details.

11. What happens when my fixed rate ends?

When your fixed-rate deal ends, your lender will move you onto their Standard Variable Rate unless you take action. The SVR is almost always considerably higher than any fixed-rate product the same lender offers, which means your monthly payment goes up, sometimes by a lot, without you doing anything. The solution is to start looking at your options three to six months before your deal ends. You can do a product transfer with your existing lender, which is fast and simple, or remortgage to a new lender to access the whole market. We compare both and tell you which is the better option for your situation.

12. Can I port my mortgage to a new property?

Most fixed-rate mortgages are portable, meaning you can transfer your existing rate to a new property when you move home rather than starting again with a new deal. However, porting is not automatic. Your lender will reassess your affordability, and the new property will need to meet their criteria. If you are moving to a more expensive property, you will likely need to borrow more on top, which may be at a different rate. If you are moving to a cheaper property, the lender may not allow partial redemption without an early repayment charge. We check your lender's porting terms early in the process so you know exactly where you stand. Visit our moving home page for more details.

13. Can family help me buy?

There are several well-established ways parents and family members can help someone buy a home. A gifted deposit is the most straightforward, where a family member gives you money toward your deposit with no expectation of repayment. A joint borrower sole proprietor mortgage lets a parent's income be included in the affordability assessment without them going on the property deeds, which avoids stamp duty complications. A guarantor arrangement is another option, where a family member agrees to cover payments if you cannot. Each structure has different tax, legal and financial implications, and the right one depends on your family's specific circumstances. We work through the options with every client to find the most suitable approach.

14. How long should I fix my mortgage for?

There is no single right answer, and it depends on your personal circumstances and view of where rates are heading. A two-year fix gives you flexibility to review sooner. A five-year fix gives you longer-term certainty and protection against rate rises, but you are locked in for longer. In the current market, with rates having risen sharply following the Iran conflict in early 2026 and further cuts looking uncertain, many borrowers are favouring five-year fixes to lock in certainty. Others are choosing two-year deals on the basis that rates may come down further once the situation stabilises. We talk through the options honestly and help you make the right call for your situation rather than just telling you what most people choose.

15. What is stamp duty, and how much will I pay?

Stamp duty is a tax paid to the government when you buy a property in England or Northern Ireland. The amount depends on who you are and what you are buying. First-time buyers pay no stamp duty on the first £300,000 and 5% on the portion between £300,001 and £500,000. If the property costs more than £500,000, first-time buyer relief is withdrawn entirely. Home movers pay no stamp duty on the first £125,000, 2% between £125,001 and £250,000, and 5% between £250,001 and £925,000. Buy-to-let investors and second home buyers pay a 5% surcharge on top of the standard rates at every band. Your solicitor will handle the actual payment, but we can calculate the figure for you during our initial conversation.

16. Can I buy a second home or investment property?

Yes. Buy-to-let mortgages are available for residential investment properties, and the affordability is primarily based on the expected rental income rather than your personal income, though lenders also look at your background financial position. If you own four or more mortgaged buy-to-let properties, you are classed as a portfolio landlord, and lenders assess the whole portfolio rather than just the individual property. If you want to hold properties in a limited company for tax efficiency reasons, we arrange these regularly. Bear in mind that second homes and investment properties attract the 5% additional stamp duty surcharge on top of standard rates.

17. What is an HMO mortgage?

An HMO, or House in Multiple Occupation, is a property rented to three or more unrelated people who share facilities such as a kitchen or bathroom. HMO mortgages are a specialist product, and not all lenders offer them. They typically offer higher rental yields than standard buy-to-let properties, which is why many experienced landlords focus on them. The application process involves licensing requirements, planning considerations and a more detailed assessment of the rental income. We deal with HMO mortgage applications regularly across Oxfordshire and the rest of the UK and know which lenders are most active in this space.

8. What is shared ownership?

Shared ownership is a scheme where you buy a percentage of a property, typically between 25% and 75%, and pay rent on the remaining share to a housing association. You get a mortgage on the share you are buying, which means the deposit and mortgage amount are both lower than for a full purchase. Over time, you can buy additional shares in a process called staircasing, until you own the property outright if you choose. It is a route onto the property ladder that works well for buyers who cannot quite afford to buy outright in their area. The mortgage side of shared ownership has some specific requirements, and not all lenders participate, so using a broker who understands the scheme is important.

19. Can I get a mortgage on a property above a shop?

Yes, but the options are more limited than for standard residential properties. Lenders are cautious about properties above commercial premises due to concerns about noise, access, business volatility, and resale value. The type of business below matters; a property above a quiet office is viewed differently from one above a takeaway. We have a dedicated page on mortgages above shops that explains which lenders will consider these and what affects their decision. The short version is that it is achievable, but it requires the right broker to find the right lender.

20. What is an early repayment charge?

An early repayment charge, often called an ERC, is a penalty charged by your lender if you repay your mortgage or switch to a new deal before your current fixed or discounted rate period ends. ERCs are typically between 1% and 5% of the outstanding balance and reduce the closer you get to the end of your deal period. In the final few months of most fixed-rate deals, the ERC is either very low or zero. If you are thinking about switching early, it is worth calculating whether the savings from a better rate outweigh the penalty. We do this calculation for clients regularly and will tell you honestly whether it is worth it or whether waiting a few more months makes more financial sense.

21. What is a product transfer?

A product transfer is when you switch to a new rate with your existing lender without moving to a different lender. It is faster and simpler than a full remortgage because it does not usually require a new affordability assessment, solicitor or valuation. For landlords with BM Solutions or TML mortgages, both of which are intermediary-only lenders, a BM Solutions product transfer or a TML product transfer must be arranged through a broker. We always compare the product transfer rate against the wider market before recommending it to make sure your existing lender is actually offering you competitive terms.

22. Can I get a mortgage on a non-standard construction property?

Yes, but your lender options are more limited. Properties built with concrete panels, timber frames, thatched roofs, steel frames or other non-standard materials have a smaller pool of lenders willing to accept them. The property is not unmortgageable, but it requires a broker who knows which lenders are comfortable with which construction types. Similarly, flats with cladding issues that do not have an EWS1 certificate are more complex, though the market for these has improved considerably. We deal with mortgages without an EWS1 form regularly and know the current lender position well.

23. Can I get a mortgage if I have no credit history?

Having no credit history is a different problem from having bad credit, but it can still cause issues. Lenders want to see evidence that you manage credit responsibly. If you have never had a credit card, loan or any form of credit, some lenders will be cautious because they have no evidence to assess. Building a thin credit file before applying, through a credit card used for small purchases and paid off in full each month, is one of the most effective ways to improve your position. If you are a foreign national or have recently moved to the UK and have limited UK credit history, there are specialist lenders who take a broader view of your financial background. We have a dedicated page on foreign national mortgages if this applies to you.

24. What is a whole-of-market broker and why does it matter?

A whole-of-market broker has access to products from across the entire lending market rather than being tied to a specific panel of lenders or a single bank. This matters because the right lender for your situation is often not the most obvious one. Different lenders have different criteria for self-employed income, adverse credit, unusual property types, portfolio landlords and dozens of other variables. A broker tied to a limited panel can only find you the best deal within that panel. A whole-of-market broker finds you the best deal from across the entire market. At Drummonds Finance Group, we are whole-of-market with access to over 100 lenders. Read more about our approach here.

25. How do I get started?

The simplest starting point is a phone call. We will ask you a few questions about your situation, give you an honest view of what is achievable and tell you what the next steps look like. There is no obligation and no pressure. We help clients in Oxford, Bicester, Banbury and across the UK. Call us on 0330 1330034 or visit our contact page to request a callback, and we will be in touch the same day.

Please note: The information in this post is correct at the time of writing but the mortgage market, lender criteria, interest rates and government schemes can change at any time. Always speak to a qualified mortgage adviser before making any decisions based on what you read here. Call us on 0330 1330034 or visit our contact page for up-to-date advice tailored to your circumstances.