What mortgage can I get?

When you’re considering purchasing a property or refinancing an existing mortgage, one of the most common questions is: what mortgages can I get? Understanding the types of mortgages available and how different circumstances affect your eligibility can help you feel more prepared when beginning your mortgage journey. In this guide, we’ll walk through everything you need to know about the different types of mortgages, how lenders assess your application, and how a mortgage broker can help you explore suitable options.

Understanding Your Mortgage Options

The UK mortgage market offers a variety of products designed to meet different needs and financial situations. From first-time buyers to those looking to remortgage or invest in property, each mortgage type comes with unique features and requirements. Below is an overview of the main mortgage types you may come across when exploring what mortgages you can get.

Repayment vs Interest-Only Mortgages

Repayment mortgage: With this standard option, your monthly payment covers both the interest and a portion of the capital. At the end of the mortgage term (typically 25 to 35 years), the loan is fully paid off.

Interest-only mortgage: Your monthly payments cover only the interest on the loan. You’ll need a plan in place to repay the full loan amount at the end of the term. This type is less common for residential buyers but may be available under certain circumstances.

Fixed-Rate Mortgages

A fixed-rate mortgage offers the certainty of a consistent interest rate for a set period, often 2, 3, 5 or sometimes 10 years. This can help with budgeting, especially if you’re concerned about potential interest rate rises.

Variable-Rate Mortgages

With a variable-rate mortgage, your interest rate can change over time, which means your monthly repayments could go up or down. These come in several types:

Standard Variable Rate (SVR): The default rate set by your lender after your initial deal ends.
Tracker Mortgage: A rate that follows the Bank of England base rate plus a set percentage.
Discount Mortgage: A discounted rate from the lender’s SVR for a fixed period.

Offset Mortgages

An offset mortgage links your savings account to your mortgage. Instead of earning interest on your savings, the balance is used to reduce the amount of mortgage interest charged. This could help reduce your mortgage balance faster or lower your monthly payments.

Help to Buy and Government Schemes

Several government-backed schemes are available in the UK, depending on where you live. These include:

Shared Ownership: You buy a portion of the property and pay rent on the remaining share to a housing association.
First Homes scheme: Offers homes at a discount for first-time buyers in England.
Scottish Government Shared Equity schemes and Welsh Help to Buy options may be available regionally.

Who Can Get a Mortgage?

When assessing what mortgages you can get, lenders will evaluate your personal and financial circumstances. Each mortgage loan is subject to affordability checks, credit assessments, and lending criteria which may include the following considerations:

Income and Employment Status

Lenders generally require proof of income to assess your ability to make monthly repayments. This may include:

PAYE payslips if you’re employed
Tax returns or SA302s if you’re self-employed
Evidence of additional income such as bonuses, rental income, or benefits

Credit History

Your credit report gives lenders insight into your borrowing history, existing commitments, and how reliably you’ve paid off previous debts. A stronger credit profile may help you access a wider selection of mortgage products at more competitive rates.

Deposit Size

The size of your deposit significantly affects the range of mortgages available. Mortgage products are often referred to by their Loan-to-Value (LTV) ratio. For example:

95% LTV: Requires a 5% deposit
90% LTV: Requires a 10% deposit
75% LTV: Requires a 25% deposit

A larger deposit can open up access to more favourable rates and a greater choice of lenders.

Different Types of Borrowers

What mortgages you can get may vary depending on your buyer profile. Let’s explore how different circumstances can impact your mortgage options.

First-Time Buyers

First-time buyers may benefit from mortgage deals meant to support those taking their first step onto the property ladder. Lenders may accept smaller deposits and offer products designed to reduce entry barriers.

Home Movers

If you’re selling your current home and buying a new one, you may be able to port your existing mortgage (transfer it to your new property) or apply for a new mortgage. Your affordability may be reassessed if borrowing more.

Buy-to-Let Investors

Buy-to-let mortgages are designed for purchasing property to rent out. These typically require a larger deposit (often at least 25%) and lenders assess expected rental income alongside your financial profile.

Self-Employed Applicants

Being self-employed can make proving your income more complex, especially if your earnings fluctuate. Lenders generally ask for two or more years of accounts or tax returns.

Remortgaging Borrowers

If you’re switching lenders or products once your existing mortgage deal ends, remortgaging could help you find a more suitable rate. The process is similar to applying for a new mortgage and will involve affordability checks.

Adverse Credit Applicants

If you’ve had credit issues in the past, such as missed payments, defaults or County Court Judgements (CCJs), your choice of mortgage products may be more limited. Some lenders specialise in working with applicants with less-than-perfect credit histories.

How Much Can I Borrow?

In addition to asking “what mortgages can I get,” many people want to understand how much they can borrow. Lenders typically use income multiples to calculate this. While these vary, as a rough guide, many lenders may offer between 4 to 4.5 times your annual income. However, this can depend on other factors, such as:

Existing commitments like loans or credit cards
Monthly outgoings (e.g. childcare, travel, subscriptions)
Number of financial dependents
Your credit rating
The deposit amount

Affordability assessments are required as part of responsible lending rules, ensuring you can reasonably manage repayments both now and if interest rates were to rise.

Mortgage Terms and Flexibility

Mortgage terms commonly range from 2 to 35 years. A longer term spreads the repayments across more years, which could lower your monthly payment. However, it usually means more interest overall. Shorter terms may save interest costs but come with higher monthly commitments.

Some mortgages offer additional features including:

Overpayment facilities: Allows you to pay more than the required monthly amount, helping to reduce interest and the loan term.
Payment holidays: Some lenders may allow temporary payment breaks, though this is usually subject to approval.
Portability: The ability to transfer your mortgage to a new property if you move home.

Fees and Charges

When considering what mortgages you can get, it’s important to factor in the associated costs. These can include:

Arrangement fees: Charged by the lender for setting up your mortgage.
Valuation fees: To assess the property’s value for lending purposes.
Legal fees: Required for conveyancing and legal work.
Broker fees: Some brokers may charge a fee for their services in helping you find mortgage solutions.

It’s also worth checking whether fees can be added to the loan or must be paid upfront, as this may affect your total borrowing amount and repayment cost.

How a Mortgage Broker Can Help

When navigating your mortgage journey, seeking guidance from a mortgage broker can help you understand which mortgage options align with your individual circumstances and preferences. Brokers have access to a wide panel of lenders and can help you compare different products and criteria from various providers.

A mortgage broker can help:

Identify mortgage products that suit your financial profile
Explain complex requirements or terminology
Help gather the necessary documents for an application
Help you understand the overall cost of borrowing

What Documents Will You Need?

Being prepared with the right paperwork can make the mortgage process as smooth as possible. Lenders typically ask for:

Proof of identity (passport or driving licence)
Proof of address (utility bill, council tax statement)
Payslips, bank statements, or tax returns depending on employment status
Details of existing credit commitments
Proof of deposit (savings statements or gifted deposit letter)

Frequently Asked Questions

Can I get a mortgage with a low income?

Mortgage availability depends not just on income but also on outgoings and credit profile. Some lenders may cater to applicants with lower incomes, particularly with a larger deposit or strong affordability case.

How long does a mortgage application take?

The full process can take between 2 to 8 weeks depending on circumstances and documentation. Having paperwork ready and responding to requests promptly can help reduce delays as much as possible.

Do I need a deposit to get a mortgage?

Most lenders require at least a 5% deposit, although some schemes may support smaller deposits under certain criteria. A larger deposit can expand the selection of mortgage costs and terms you can consider.

Can I get a mortgage with a bad credit history?

Some lenders specialise in helping those with previous credit issues. What mortgages you can get will depend on the nature of the credit history, how recent the issues are, and whether they’ve been resolved.

Conclusion

Answering the question “what mortgages can I get?” requires consideration of your financial situation, goals, and future plans. There’s no one-size-fits-all answer, but with the right guidance and preparation, you can explore the range of mortgage options that may be suitable for you. Understanding the types of mortgages, factors affecting eligibility, and the supporting documents needed can make the process more approachable as you work towards your property goals.