Can I get a mortgage if I’m self-employed?
Yes. Lenders will typically want to see two to three years of accounts or SA302s and tax year overviews, though some specialist lenders will consider as little as one year’s trading history. We work with a panel of lenders who take different approaches to assessing self-employed income, so if one lender’s criteria don’t fit your circumstances, we can usually find one that does.
Can I get a mortgage with bad or adverse credit?
In many cases, yes. High-street lenders tend to decline applicants with missed payments, defaults, CCJs or historic bankruptcy, but a number of specialist lenders underwrite manually and will consider adverse credit depending on how recent and severe it was. Rates and maximum LTV are usually less favourable than standard products, and we will talk you through what is realistically available before you apply.
Can I overpay my mortgage without being charged?
Most mortgages let you overpay up to 10% of the outstanding balance each calendar year without triggering a charge, though this varies by lender and product. Overpaying beyond that limit during a fixed or tracker deal usually incurs an early repayment charge, so it is worth checking your specific offer terms before making a lump sum payment.
Can I port my mortgage to a new property?
Porting lets you transfer your existing mortgage rate to a new property when you move, avoiding an early repayment charge, provided the new property and your circumstances still meet the lender’s criteria. If you need to borrow more, the additional amount is usually arranged as a separate part of the mortgage, often at a different rate. Porting is not guaranteed, as it remains subject to a fresh affordability and property assessment.
Do I need a deposit, and how much will I need?
Most residential mortgages require a minimum deposit of 5% to 10% of the purchase price, with better rates generally available above 15-25% deposit. Buy-to-let and specialist lending typically require larger deposits, often from 20% to 40% depending on the lender and property type. We can advise on the loan-to-value bands that will get you the most competitive rate for your situation.
Do I need a mortgage broker, and what will it cost me?
You are not obliged to use a broker, but a broker gives you access to a wider range of products, including many not available direct to the public, and handles the process on your behalf. Many brokers, including Giles Finance, are remunerated through a procuration fee paid by the lender on completion, so advice can often be provided at no direct cost to you; where a fee does apply, we will always confirm it in writing before you proceed.
How does a bridging loan work, and how quickly can it be arranged?
A bridging loan is a short-term secured loan, typically used to complete a purchase before a related sale completes, to buy at auction, or to fund works before refinancing. It is usually arranged far more quickly than a standard mortgage, often within one to three weeks, because underwriting focuses on the security property and your exit strategy rather than lengthy income assessment. You will need a clear, credible exit route, such as sale of the property or refinancing onto a standard mortgage.
How does my credit score affect my mortgage application?
There is no single credit score that all lenders use; each has its own scoring model and some do not rely on scoring at all. What matters more is the detail behind the score, such as missed payments, defaults, CCJs, existing debt levels and how many recent credit applications you have made. A weaker credit history does not rule out a mortgage, but it may mean fewer lenders are available and rates may be higher.
How is a buy-to-let mortgage different from a residential mortgage?
Buy-to-let lending is assessed primarily on the property’s expected rental income rather than your personal income alone, using an interest cover ratio (ICR) set by the lender. Deposits, rates and fees are generally higher than for residential mortgages, and most buy-to-let mortgages are arranged on an interest-only basis. Many lenders also apply stricter criteria for portfolio landlords with four or more mortgaged properties.
How long does a mortgage application take from start to finish?
Timescales vary widely, but a straightforward residential application typically takes four to eight weeks from full application to completion, depending on valuation turnaround, conveyancing and the complexity of your circumstances. Specialist or complex cases, and bridging or development finance, can move faster or slower depending on the lender and the paperwork available upfront. Getting your documents ready in advance is the single biggest thing you can do to keep things moving.
How much can I borrow?
Most residential lenders will lend around 4 to 4.5 times your annual income, though some products allow higher multiples for certain professions or income levels. The final figure depends on your income, outgoings, existing debt, credit history and the lender’s affordability calculation, so two lenders can offer very different amounts for the same applicant. We will run an affordability check across our lender panel to identify your realistic borrowing range before you start viewing properties.
How much stamp duty will I pay?
Stamp Duty Land Tax, which applies in England and Northern Ireland, is charged on a sliding scale based on the purchase price, with different rates and reliefs for first-time buyers, additional properties and non-UK residents; Scotland and Wales apply their own equivalent taxes (LBTT and LTT) with different thresholds. Because rates and thresholds change periodically, we would always recommend checking the current position for your specific purchase before exchange.
What documents will I need for my mortgage application?
You will typically need proof of identity (passport or driving licence), proof of address, your last three months’ payslips or two to three years of accounts if you are self-employed, recent bank statements, and evidence of your deposit source. Lenders may ask for further detail depending on your circumstances, and having everything ready in advance can significantly speed up your application.
What first-time buyer schemes are available?
Current options include Shared Ownership, where you buy a share of a property and pay rent on the rest, Deposit Unlock and other new-build backed schemes, Right to Buy for eligible council tenants, and family-assisted routes such as guarantor or joint borrower sole proprietor mortgages. Availability and eligibility criteria change over time and can differ across England, Scotland, Wales and Northern Ireland, so we will confirm what currently applies to your situation.
What happens at the end of my fixed-rate deal?
If you do not arrange a new deal, your mortgage will usually move onto the lender’s standard variable rate (SVR), which is typically higher than your fixed rate and can increase your monthly payment significantly. Most lenders let you secure a new rate three to six months before your current deal ends, and it is worth reviewing your options in good time rather than defaulting onto the SVR.
What happens if I miss a mortgage payment?
Your lender will normally contact you soon after a missed payment to discuss the reason and agree a way forward; a single missed payment will not lead to repossession, but it will typically be recorded on your credit file if it is not resolved quickly. If you are struggling, contacting your lender early gives you access to more options, such as a temporary payment arrangement, than waiting until arrears build up.
What is a joint borrower sole proprietor mortgage?
This is a mortgage where a family member’s income is used to help support the affordability assessment, but only the buyer is registered as the legal owner of the property. It is a common way for first-time buyers to increase their borrowing capacity without giving the supporting party a stake in the property, though the supporting party remains jointly liable for the mortgage debt.
What is a mortgage in principle, and how does it differ from a full application?
A mortgage in principle, sometimes called a decision or agreement in principle, is an indicative statement from a lender of how much they might lend you, usually based on a soft credit check and self-declared income; it is useful for house-hunting but is not a guarantee. A full application involves verified income and identity documents, a hard credit check, and a property valuation, and only concludes with a formal mortgage offer once all checks are complete.
What is a mortgage valuation, and do I need my own survey as well?
A mortgage valuation is arranged by the lender to confirm the property is adequate security for the loan; it protects the lender’s interest, not yours, and is often quite brief. Because of this, we would generally recommend commissioning your own more detailed survey, such as a HomeBuyer Report or full structural survey depending on the property’s age and condition, to identify any issues before you commit.
What is an early repayment charge?
An early repayment charge (ERC) is a fee charged if you repay all or part of your mortgage beyond your allowed overpayment limit during a fixed, discounted or tracker deal period. It is usually expressed as a percentage of the amount repaid, often reducing the further you are into the deal, and exists to compensate the lender for the funding cost of the early exit.
What is an offset mortgage?
An offset mortgage links your savings to your mortgage balance, so you only pay interest on the difference between the two. It will not suit everyone, as you typically give up interest on the savings held in the offset account, but it can reduce the interest you pay and shorten your mortgage term for those with significant savings.
What is development finance, and how is it released?
Development finance funds the ground-up construction or substantial refurbishment of a property, sized against both the build cost and the projected Gross Development Value (GDV) of the completed scheme. Funds are released in stages as work progresses, usually verified by an independent monitoring surveyor, rather than paid out as a single lump sum, with the loan typically repaid on sale or refinance of the completed units.
What is loan-to-value (LTV), and why does it matter?
LTV is the mortgage amount expressed as a percentage of the property’s value; for example, a £180,000 mortgage on a £200,000 property is 90% LTV. Lower LTV bands generally unlock more competitive interest rates, because the lender is taking on proportionately less risk, so a larger deposit, or more equity on a remortgage, can materially reduce your rate.
What is the difference between a fixed rate and a tracker or variable rate?
A fixed rate stays the same for an agreed period, giving you certainty over your monthly payment regardless of what happens to interest rates generally. A tracker rate moves in line with a reference rate, usually the Bank of England base rate, plus a set margin, while a standard variable or discounted rate can move at the lender’s discretion; both offer less payment certainty but can work out cheaper if rates fall or stay low.
What is the difference between a repayment and an interest-only mortgage?
On a repayment mortgage, each monthly payment covers both interest and a portion of the capital, so the loan is fully repaid by the end of the term. On an interest-only mortgage, your payments cover interest alone and the capital remains outstanding, so you will need a credible repayment strategy, such as an investment plan or the sale of the property, to clear the balance at the end of the term.
What support is available if I’m struggling to pay my mortgage?
Lenders have a range of forbearance options, including temporary payment holidays, a switch to interest-only for a period, or extending the mortgage term to reduce monthly payments; many UK lenders also follow the Mortgage Charter, which sets out minimum standards of support. The earlier you speak to your lender, or to us, about difficulty paying, the more options are typically available.
Who can apply for a joint mortgage?
Most lenders allow up to four applicants on a joint mortgage application, and applicants do not need to be married or related, as friends, family members or business partners can apply together, subject to the lender’s criteria. All parties are usually jointly and severally liable for the full mortgage debt, meaning each person is individually responsible for the whole amount, not just their share, regardless of how ownership of the property is split.
