Let’s be honest the first time you say the word “mortgage” out loud, it feels like you need a finance degree just to understand the paperwork. You don’t. You just need someone to walk you through it in plain English. That’s what this guide is for.
The Moment Everyone Gets Stuck: Where Do I Even Start?
Most first-time buyers don’t get stuck on the big questions. They get stuck on the small, practical ones: How much deposit do I actually need? Will my job type work against me? What if my credit isn’t perfect? Let’s tackle those one at a time.
What Is a Mortgage?
A mortgage is a loan from a bank or lender that lets you buy a property, secured against that property itself. You put down a deposit upfront (usually a percentage of the price), borrow the rest, and repay it monthly with interest over a set term, typically 20 to 35 years. If repayments stop, the lender can repossess the property, which is why affordability checks matter so much.
How Much Deposit Do You Actually Need?
This is the number one question first-time buyers ask, and the honest answer is: it depends, but 5% is usually the floor. A £250,000 home with a 5% deposit means finding £12,500 upfront, with the remaining 95% borrowed. Some lenders offer stepped or guarantor products for buyers with an even smaller deposit, though rates tend to be higher the less you put down the loan to value (LTV) directly affects your interest rate.
Rule of thumb: the bigger your deposit, the lower your LTV, and the better the interest rates a mortgage broker can find for you.
How Do I Qualify for a Mortgage? (The Real Checklist)
Lenders aren’t just looking at your salary. They’re building a picture of whether you can comfortably afford repayments, even if interest rates rise. Here’s what typically goes into that picture:
- Income and employment history payslips, bank statements, and proof of address
- Existing debts and monthly outgoings credit cards, car finance, subscriptions
- Credit history not perfection, just a realistic pattern of managing money
- Deposit size proof of where it’s coming from (savings, gift, inheritance)
- Property type some homes are easier to mortgage than others
A mortgage advisor’s job is essentially to match your specific picture to the lenders most likely to say yes which is very different from just walking into one bank and hoping.
Fixed, Tracker, or Variable Which Rate Type Actually Suits You?
- Fixed rate mortgage your rate stays the same for an agreed period (say, 2 or 5 years). Payments don’t move, which is great if you like predictability.
- Tracker mortgage your rate follows the Bank of England base rate. If rates fall, so do your payments but they can rise too.
- Variable rate mortgage set by the lender rather than tracking the base rate directly, so it can change at their discretion.
There’s no universally “best” option here it comes down to how much risk you’re comfortable with and how long you plan to stay in the property.
Can I Get a Mortgage With Bad Credit?
Yes and this surprises a lot of people. A missed phone bill from two years ago, or one late credit card payment, isn’t automatically a dealbreaker. Specialist lenders exist specifically for borrowers with a less-than-perfect credit history, and a whole-of-market mortgage broker will know which ones are worth approaching, rather than letting you get rejected by a high-street bank that only wants pristine files.
What About Self Employed Buyers?
Self-employment used to be a real obstacle in mortgage applications and for some high-street banks, it still is. But plenty of lenders now work with:
- Contractors on day rates
- Company directors taking a small salary but higher dividends
- Freelancers with as little as one year of accounts
The key is presenting your income the right way, which is exactly where a broker who specialises in self-employed mortgage advice earns their keep.
The Mortgage Application Process, Step by Step
- Get a Decision in Principle (DIP) a quick indication of how much you could borrow
- Find your property and get an accepted offer
- Submit your full mortgage application with supporting documents
- Valuation and underwriting the lender checks the property and your finances properly
- Mortgage offer issued formal approval, usually within 2 4 weeks
- Legal work and completion solicitors handle the transfer, and you get the keys
Why Use a Whole of Market Mortgage Broker Instead of Going Direct?
Going straight to one bank means seeing exactly one bank’s products. A whole-of-market broker compares thousands of deals across the entire lending market including specialist lenders that don’t deal directly with the public and matches you to the one that actually fits your situation, not just the one you happened to walk into.
Frequently Asked Questions
What is a mortgage? A mortgage is a loan used to buy property, repaid monthly over a long term (typically 20–35 years), with the property itself used as security for the loan.
How do I qualify for a mortgage? Lenders assess your income, existing debts, credit history, deposit size, and the property type to decide affordability and eligibility.
How much deposit do I need? Most first-time buyers need a minimum of 5% of the property’s price, though a larger deposit typically unlocks better interest rates.
Can I get a mortgage with bad credit? Yes. Specialist lenders focus on your overall financial picture rather than rejecting you for a single past credit issue.
Can self-employed people get a mortgage? Yes. Many lenders accept self-employed applicants, contractors, and company directors even with as little as one year of trading accounts when the application is structured correctly.
Not sure where you stand? A quick chat with a mortgage advisor costs nothing and can tell you exactly how much you could borrow before you start house-hunting.