Trustpilot
Get in touch

Mortgage Questions Answered

Mortgage Questions Answered

  • Clear answers to the mortgage questions people actually ask
  • Written by qualified advisers, kept up to date for 2026
  • Fee-free, whole of market, with no obligation to go further
Trustpilot
0203 195 1982
Email us

Get In Touch

1 Step 1

By submitting this information you have given your agreement to receive verbal contact from us to discuss your mortgage requirements

reCaptcha v3
keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right
FormCraft - WordPress form builder

The mortgage questions people ask us most
Aidan Broom Written by Aidan Broom

First-time buyer Mortgage FAQs

How much deposit do I need to buy my first home?

Most first-time buyers need a deposit of at least 5% of the property's value, so £10,000 on a £200,000 home. A larger deposit usually means access to lower rates, but 5% deposit mortgages are widely available in 2026, and some lenders now offer options for buyers with smaller or no deposit. The right level depends on your income, the property, and the deals you qualify for. [link: first-time buyer guide]

Yes, 5% deposit mortgages (95% LTV) are available from a range of lenders in 2026. You'll need to meet the lender's affordability and credit criteria, and the rates are typically higher than for buyers with a larger deposit. A broker can tell you quickly which lenders are most likely to accept your circumstances.

Several schemes can help first-time buyers, including Shared Ownership, the Own New scheme on selected new builds, and various lender-led low-deposit and no-deposit products. Availability changes over time and depends on your situation and the property. It's worth checking which you actually qualify for before assuming a scheme is the right route.

As a starting point, most lenders will lend around 4.5 times your annual income, though some will stretch to 5 or 5.5 times in the right circumstances. Your actual borrowing depends on your income type, outgoings, credit profile, and deposit. Two people on the same salary can be offered very different amounts depending on the lender.

From application to mortgage offer typically takes two to six weeks, though it varies by lender and how complete your paperwork is. The full process through to completion usually takes a few months once you factor in conveyancing and the property chain. Having your documents ready and using a broker to package the application well can speed things up.

Self-employed and company director Mortgage FAQs

Can you get a mortgage if you're self-employed?

Yes, self-employed people can get mortgages, and there's no separate "self-employed mortgage product." You apply for the same mortgages as everyone else, but lenders assess your income differently, usually based on your accounts or tax calculations rather than payslips. The key is matching your situation to a lender that understands how you're paid.

Most lenders want two to three years of accounts, but it isn't a universal rule. A number of lenders will consider one year of finalised accounts, and a few will look at less in specific circumstances. The fewer years you have, the more it matters which lender you approach and how your income is evidenced.

Lenders usually assess a director's income in one of two ways: salary plus dividends, or salary plus a share of the company's net or retained profit. The second approach can result in much higher borrowing for directors who leave profit in the business for tax efficiency. Which lender you choose often matters more than the income multiple, because the income basis changes the figure dramatically.

Yes, you can get a mortgage with one year of accounts, even though most high street lenders ask for two or three. A smaller group of lenders, including some high street names, will assess a single year of finalised accounts if your income is evidenced clearly and the business looks stable. The challenge is knowing which lenders to approach, because applying to the wrong one usually means a decline.

Yes. Heron Financial works regularly with self-employed clients, sole traders, and limited company directors, including those with complex or recently changed income. As a fee-free, whole-of-market broker, Heron has access to lenders that assess director income on retained profit and specialist lenders that consider one year of accounts. This is one of the firm's core areas of expertise.

Speak To An Expert

Our key aims are to fully understand what you are looking to achieve, create a solution tailored to your needs, deliver results through an excellent service and build a relationship for life.

0203 195 1982
Email us

Complex income Mortgage FAQs

Can I use commission or bonus income for a mortgage?

Yes, most lenders will consider commission and bonus income, though how much of it they count varies. Some use 100% of it, others take an average over one to two years, and a few apply a discount or cap. If a large part of your income is variable, the lender you choose can significantly change how much you can borrow.

Many lenders will assess contractor income based on your day rate rather than your accounts, typically by multiplying your daily rate by the number of days you work in a week and then across the year. This often produces a higher assessable income than looking at salary and dividends alone. Not all lenders offer day-rate underwriting, so it's worth identifying the contractor-friendly ones before applying.

Yes, lenders can consider income from more than one source, such as an employed salary alongside self-employed or rental income. The challenge is that lenders treat secondary income inconsistently, with some using all of it and others discounting or ignoring it. Presenting the income clearly and choosing the right lender is where this becomes straightforward.

Complex income is any income that isn't a single, straightforward PAYE salary. This includes self-employment, company director income, commission, bonuses, day rate contracting, multiple jobs, rental income, and equity or stock-based pay. Most people have something slightly complex going on, and it usually just means your application needs more careful packaging.

Because lenders assess complex income very differently, and the wrong choice can mean a decline or a much lower offer. Heron Financial specialises in complex income cases and knows which lenders treat each income type favourably, from retained profit to day rates to commission. As a fee-free, whole-of-market broker, Heron packages the application so the income is presented in its strongest form.

Remortgaging FAQs

When should I start looking at remortgaging?

Start looking around six months before your current deal ends. Many lenders let you secure a new rate up to six months in advance, so you can lock in a deal and switch to a better one if rates fall before completion. Leaving it until your deal expires often means slipping onto your lender's higher standard variable rate.

A product transfer is when you take a new deal with your existing lender, while a remortgage is when you move your mortgage to a different lender. Product transfers are quicker and need less paperwork, but they only show you one lender's deals. A remortgage opens up the whole market, which is why it's worth comparing both before deciding.

Yes, you can often borrow more than your current balance when you remortgage and take the difference as cash, subject to affordability and the lender's criteria. People commonly do this for home improvements, debt consolidation, or other large costs. The amount available depends on your property value, your remaining balance, and what you can afford to repay.

In most cases, yes, because doing nothing usually means moving onto your lender's standard variable rate, which is typically higher than a new fixed or tracker deal. Whether you fix again, choose a tracker, or transfer with your current lender depends on your plans and the market at the time. Reviewing your options before the deal ends is almost always worthwhile.

Heron Financial reviews the whole market alongside your current lender's product transfer offer, so you can see whether staying or switching gives you the better deal. The advice is fee-free, and Heron handles the application and paperwork through to completion. You can also join the free Monthly Remortgage Drop-In Clinic to ask questions live.

New build Mortgage FAQs

How does a new build mortgage work?

A new build mortgage works much like any other, but lenders treat new builds with some extra caution, often requiring a larger deposit and applying stricter valuations. Mortgage offers also need to allow for longer build timelines, since completion can be months away. Using a lender experienced with new builds helps avoid delays.

Own New is a scheme that lets buyers of selected new build homes access a reduced mortgage rate, funded by a contribution from the house builder. The main product, Rate Reducer, lowers your monthly payments during the initial fixed period. It's available through participating builders and lenders, and whether it's right for you depends on the specific deal.

Yes, you can use a Joint Borrower Sole Proprietor (JBSP) mortgage on a new build, though not every lender allows it, so lender choice matters. A JBSP lets a family member support your application on income, helping you borrow more, without going on the property's title. This can be a useful route for first-time buyers purchasing a new build apartment.

New build mortgage offers are often valid for six months, and some lenders extend this to allow for construction delays. If your build completes after the offer expires, you may need to reapply, which can mean a new valuation and credit check. This is why timing and a new-build-friendly lender are important.

A down-valuation is when the lender's surveyor values the property below the agreed purchase price, which means the lender will lend against the lower figure. You then either make up the difference, renegotiate with the builder, or look at another lender whose valuation may differ. A broker can help by approaching lenders likely to value the property more favourably.

Buy-to-let and landlords FAQs

How much deposit do I need for a buy-to-let mortgage?

Most buy-to-let mortgages require a deposit of at least 25% of the property value, though some lenders accept 20% and others want more for certain property types. The rate you're offered usually improves with a larger deposit. Buy-to-let lending is also assessed on the expected rental income, not just your personal income.

Yes, many landlords now buy property through a limited company, often for tax reasons, and a growing number of lenders offer limited company buy-to-let mortgages. The criteria, rates, and fees can differ from personal buy-to-let, and the right structure depends on your circumstances. It's worth taking tax advice alongside mortgage advice before deciding.

Lenders assess buy-to-let affordability mainly on the rental income the property is expected to generate, using a calculation called the interest coverage ratio. The rent usually needs to cover a set percentage above the mortgage payment, often around 125% to 145% depending on your tax position. Some lenders also consider your personal income to top up affordability.

Landlords need to be aware of major changes that came into force in 2026, including the abolition of Section 21 no-fault evictions, the move to rolling periodic tenancies, and a requirement to issue the government's official information sheet to existing tenants. Compliance with safety certificates is now also tied to your ability to regain possession. Falling behind can carry significant penalties, so it's worth reviewing your obligations.

Yes. Heron Financial arranges buy-to-let mortgages for both individual landlords and limited companies, including portfolio landlords. As a fee-free, whole-of-market broker, Heron can compare specialist buy-to-let lenders that many landlords can't access directly.

If you’ve been declined

Why do banks decline mortgage applications?

Banks decline applications for many reasons, including credit history, affordability, income type, the property itself, or simply because your circumstances don't fit that lender's specific criteria. A decline from one lender doesn't mean every lender will say no, because criteria vary widely. Often the issue is lender choice rather than the applicant.

First, find out the reason for the decline if you can, then avoid immediately reapplying elsewhere, because multiple applications in a short time can harm your credit profile. A broker can review why it happened and identify lenders whose criteria actually fit your situation. In many cases a declined application can be placed successfully with the right lender.

Often, yes. Banks only assess you against their own criteria, whereas a whole-of-market broker can approach lenders across the market, including specialists who handle situations high street banks decline. A broker also knows how to present your application to the lenders most likely to accept it.

The decline itself isn't recorded on your credit file, but the credit search that came with the application is visible to other lenders. Several applications close together can count against you and signal difficulty to underwriters. This is why it's better to get the lender choice right first time rather than applying repeatedly.

Heron Financial regularly helps clients who have been turned down by their bank or another broker. The team reviews why the application was declined, then matches the case to lenders whose criteria fit, drawing on the whole market including specialist lenders. The advice is fee-free, so there's no cost to find out whether your situation can be placed.

Costs, fees and how Heron works

How much does a mortgage broker cost?

Mortgage broker fees vary widely, from no fee at all to several hundred or even over a thousand pounds, depending on the broker and the complexity of your case. Some brokers charge the client, some are paid only by the lender, and some charge both. Always check how a broker is paid before you start.

Yes, Heron Financial provides fee-free mortgage advice, meaning you don't pay a broker fee for the service. Heron is paid by the lender once your mortgage completes, which is standard practice and doesn't affect your rate. This keeps expert advice accessible without an upfront cost to you.

A mortgage broker reviews your circumstances, searches the market for suitable deals, recommends the most appropriate lender and product, and manages the application through to completion. A whole-of-market broker can access lenders and deals you may not find directly, including specialist options. Good brokers also handle the paperwork and liaise with the lender on your behalf to reduce stress.

Whole of market means a broker can consider mortgage products from across the lender market, rather than being tied to a limited panel or a single lender. This gives you a far broader range of options, which matters most for anything outside a straightforward case. Heron Financial is a whole-of-market broker.

Clients choose Heron Financial for fee-free, whole-of-market advice from a broker that specialises in self-employed, company director, complex income, and first-time buyer cases. Heron is a certified B Corporation and an Appointed Representative of Mortgage Advice Bureau, regulated by the FCA, and was named a finalist for Best Mortgage Broker and Best Ethical Financial Provider at the British Bank Awards 2026. The team is known for finding solutions in cases where others couldn't.

Trustpilot

Useful Links