Fixed-Rate Mortgages

A fixed-rate mortgage offers predictable monthly repayments for a set period — typically two, five, or ten years. This means your interest rate won’t change, even if the Bank of England base rate does. Fixed-rate deals are ideal if you want financial stability and peace of mind, especially when budgeting for household costs. However, early repayment charges may apply if you switch deals before the term ends.

Fixed-Rate Mortgages

A fixed-rate mortgage offers predictable monthly repayments for a set period — typically two, five, or ten years. This means your interest rate won’t change, even if the Bank of England base rate does. Fixed-rate deals are ideal if you want financial stability and peace of mind, especially when budgeting for household costs. However, early repayment charges may apply if you switch deals before the term ends.

Tracker Mortgages

Tracker mortgages are linked to the Bank of England base rate, meaning your interest rate — and therefore your monthly repayments — can go up or down over time. While you could benefit from lower payments if the base rate falls, you also need to be prepared for increases. Tracker mortgages can suit those comfortable with a bit more risk and who want to potentially benefit from rate drops. Always check if there’s a minimum interest rate (a “collar”) or early exit fees.

Loan-to-Value (LTV)

Your loan-to-value ratio is the percentage of the property’s value you’re borrowing compared to the deposit you’re putting down. For example, if you have a 10% deposit, your LTV is 90%. The lower your LTV, the better the mortgage rate you’re likely to get. High LTV mortgages (like 90% or 95%) may be available but often come with higher interest rates and stricter lending criteria. Understanding your LTV is crucial when comparing deals and planning your budget.

Mortgage Eligibility

Mortgage lenders assess a range of factors to decide whether you qualify for a mortgage and how much you can borrow. These include your income, outgoings, credit history, employment status, and the size of your deposit. They also conduct affordability checks to ensure you can keep up with repayments, even if interest rates rise. Being prepared with the right documents and having a strong credit profile can improve your chances of approval and help you access better rates.

Stamp Duty

Stamp Duty Land Tax (SDLT) is a government tax payable when buying a property in England or Northern Ireland over a certain threshold. The amount you pay depends on the property price, whether you’re a first-time buyer, buying an additional property, or purchasing through a limited company. For residential buyers, no Stamp Duty is due on the first £250,000 (or £425,000 for first-time buyers), but different bands apply above this. It’s important to factor this cost into your overall budget as it can add thousands to the total cost of buying.

Mortgage Advice

With so many lenders and mortgage products on the market, it can be overwhelming to find the right one on your own. A qualified mortgage adviser or broker can assess your financial situation, explain your options, and help you access deals that suit your needs — including exclusive offers not available directly from lenders. Getting professional mortgage advice can save you time, money, and stress, especially if your situation is complex or you’re unsure where to begin.