Question 1

How much deposit do I need for a residential mortgage?

Accepted Answer

Most UK lenders require at least 5% deposit, though 10% gives access to a wider range of deals and 15–25% typically unlocks the most competitive rates. First-time buyer schemes can sometimes help if you have less, but a larger deposit always means lower monthly payments and better rate options.

Question 2

Fixed or tracker rate — which is better?

Accepted Answer

Fixed rates give you payment certainty for a set period (usually 2, 3, 5 or 10 years), so your monthly cost won't change even if Bank of England rates move. Trackers follow the base rate plus a margin, so you pay less when rates fall but more when they rise. Fixed deals dominate the UK market because most borrowers prefer certainty over the chance of small savings.

Question 3

How does loan-to-value (LTV) affect my mortgage rate?

Accepted Answer

LTV is the loan as a percentage of property value. Lower LTV means less risk for the lender, so rates improve as LTV drops. The main rate jumps are typically at 90%, 85%, 80%, 75% and 60% LTV — increasing your deposit to cross one of these thresholds can meaningfully reduce your rate.

Question 4

Can I get a mortgage with bad credit?

Accepted Answer

Yes, but choice is narrower and rates are higher. Specialist lenders consider applicants with defaults, CCJs, or missed payments — recency and severity matter more than the existence of issues. A larger deposit and stable income help significantly. Use our criteria search to see which lenders accept your specific situation.

Question 5

How long does a mortgage application take?

Accepted Answer

From application to formal offer is typically 2–4 weeks for a straightforward case, though complex cases (self-employed, adverse credit, non-standard property) can take longer. Decision in Principle takes minutes; the full offer requires valuation, income verification, and underwriting.

Question 6

What's the difference between repayment and interest-only?

Accepted Answer

Repayment pays down both interest and capital each month, so you own the property outright at the end of the term. Interest-only pays just the interest, with the capital due at the end — used mostly by buy-to-let landlords or borrowers with a clear repayment vehicle (investments, sale proceeds). Most residential lenders only offer repayment as standard.

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