Everything You Need to Know About Mortgages, First-Time Buyers, Moving Home and Remortgaging
Contents
- What Is a Mortgage?
- How Do Mortgages Work?
- How Much Can You Borrow?
- How Much Deposit Do You Need?
- The True Cost of Buying a Home
- Home Mover Mortgages
- Remortgaging Explained
- Self-Employed Mortgages
- The Mortgage Application Process
- Common Mortgage Mistakes
- Mortgage FAQs
What Is a Mortgage?
A mortgage is a loan secured against a property that allows you to spread the cost of purchasing it over a number of years.
Most people would find it difficult to buy a property outright. A mortgage enables buyers to borrow the majority of the purchase price from a lender while contributing a deposit of their own.
The mortgage is then repaid through monthly payments over an agreed term.
Mortgages are available for:
- First-time buyers
- Home movers
- Remortgaging homeowners
- Buy-to-let investors
- Self-employed applicants
Choosing the right mortgage can save thousands of pounds over the life of the loan.
How Do Mortgages Work?
When applying for a residential, home-owner mortgage, a lender assesses whether you can afford the repayments.
They will typically consider:
- Income
- Regular expenditure
- Existing debts
- Credit history
- Deposit size
- Employment status
If approved, the lender offers a mortgage based on what they believe you can afford.
You then make monthly repayments consisting of:
- Capital (the amount borrowed)
- Interest (the cost of borrowing)
As you repay the mortgage, your ownership of the property gradually increases.
Types of Mortgage Explained
Choosing the right mortgage product is one of the most important decisions you’ll make.
We have written a detailed blog on this which you can refer to here.
Fixed Rate Mortgages
A fixed-rate mortgage keeps the interest rate & payments the same for a set period.
Common fixed terms include:
- 2 years
- 3 years
- 5 years
- 10 years
Benefits:
- Predictable repayments
- Easier budgeting
- Protection against interest rate rises
Potential drawback:
- Early repayment charges may apply if you leave the deal early.
Tracker Mortgages
Tracker mortgages typically follow the Bank of England Base Rate plus a fixed percentage.
When the base rate falls, repayments may decrease.
When the base rate rises, repayments may increase.
Variable Rate Mortgages
Variable-rate mortgages can rise or fall at the lender’s discretion.
They can offer flexibility but may result in changing monthly repayments.
Discount Mortgages
A discount mortgage provides a discount from the lender’s Standard Variable Rate (SVR) for a specified period.
These can offer lower initial payments but may increase if the lender changes its underlying Standard Variable Rate.
Offset Mortgages
Offset mortgages link your savings account to your mortgage.
Savings reduce the amount of mortgage interest charged, potentially lowering overall borrowing costs.
How Much Can You Borrow?
One of the most common questions buyers ask is:
“How much can I borrow?”
The answer depends on several factors.
Lenders typically assess:
- Household income
- Monthly commitments
- Credit history
- Deposit size
- Number of dependants
Many lenders use an affordability model to calculate your maximum loan. The lender may also have an income multiple cap of between four and five times annual income as an upper limit.
A mortgage adviser can give you a more accurate assessment based on your specific situation.
How Much Deposit Do You Need?
The minimum deposit varies between lenders and mortgage products. The minimum deposit may also be driven by your individual circumstances such as credit score or poor credit conduct.
There are some low deposit schemes aimed at renters and first time buyers. We have written a separate blog on this subject which can be found here.
Larger deposits often provide access to a wider range of products and potentially better interest rates. This is because you are potentially less risk to a lender.
Advice is the key to discovering how much deposit you will need. At One Roof Financial, we can assess this over the telephone at one of our 30-minute mortgage consultations.
The True Cost of Buying a Home
Many buyers focus solely on the deposit.
However, additional costs should also be considered.
These may include:
Solicitor Fees
Legal work required when buying a property.
Survey Fees
Helps identify potential issues with the property.
Stamp Duty
May apply depending on the property value and your circumstances.
Removal Costs
Expenses associated with moving home such as van hire.
Mortgage Fees
Some lenders charge arrangement or product fees.
Budgeting for these costs can help avoid surprises later in the process.
First-Time Buyer Mortgages
Buying your first home can be exciting but also overwhelming.
Common first-time buyer concerns include:
- Saving for a deposit
- Understanding affordability
- Choosing the right mortgage
- Navigating the buying process
Professional advice can help simplify the process and ensure you understand all available options.
Many first-time buyers benefit from obtaining an Agreement in Principle before viewing properties.
This demonstrates to estate agents that you are a serious buyer.
Home Mover Mortgages
Moving home often involves different challenges compared to purchasing your first property.
You may need to consider:
- Porting your existing mortgage
- Borrowing additional funds
- Timing the sale and purchase
- Affordability assessments
Reviewing all available mortgage options before moving can help ensure you secure the most suitable deal.
Remortgaging Explained
Remortgaging involves replacing your current mortgage with a new one.
Many homeowners remortgage when:
- Their fixed rate or other promotional deal is ending
- They want to borrow additional funds for home improvements
- They need to buy out an owner or add an owner
Failing to review your mortgage when your deal ends could result in moving onto your lender’s Standard Variable Rate, which may be more expensive.
Regular mortgage reviews can help ensure your mortgage remains competitive.
Self-Employed Mortgages
Many self-employed people mistakenly believe obtaining a mortgage is difficult.
In reality, there are many lenders willing to consider:
- Sole traders
- Limited company directors
- Contractors
- Partnerships
Lenders may require:
- Tax calculations
- Tax year overviews
- Company accounts
- Business bank statements
Preparation and expert advice can significantly improve the application process.
Buy-to-Let Mortgages
Buy-to-let mortgages are designed for people purchasing property as an investment.
Lenders will often assess:
- Expected rental income
- Deposit size
- Existing property ownership
- Personal income
- Background property portfolio
Buy-to-let lending differs significantly from residential mortgages, making specialist advice particularly important.
The Mortgage Application Process
Understanding the process can help reduce stress and improve confidence. This is the process at One Roof Financial:
Step 1: Initial Consultation
Speak to a mortgage adviser about your needs and objectives.
Step 2: Fact Find
A detailed assessment of your circumstances.
Step 3: Agreement in Principle
Provides an indication of how much you may be able to borrow.
Step 4: Property Search
You find a suitable property within your budget & make an offer.
Step 5: Mortgage Application
When your offer is accepted, we can submit a full application with supporting documents.
Step 6: Valuation
The value of the property is assessed.
Step 7: Mortgage Offer
Formal approval is issued by the lender.
Step 8: Exchange of Contracts
The transaction becomes legally binding.
Step 9: Completion
You receive the keys and become the owner.
Five Common Mortgage Mistakes
1. Focusing Only on Interest Rates
The cheapest rate isn’t always the best overall deal.
2. Not Checking Credit Reports
Errors can cause delays or affect approval chances.
3. Changing Jobs During the Process
This can impact affordability assessments & lender criteria.
4. Taking on Additional Debt
New commitments may reduce borrowing capacity.
5. Waiting Too Long to Review a Mortgage
Failing to remortgage at the right time could lead to higher monthly payments.
Frequently Asked Questions
How much deposit do I need for a mortgage?
Many lenders offer mortgages requiring a 5% deposit, although larger deposits may provide access to better interest rates.
Can I get a mortgage if I’m self-employed?
Yes. Many lenders consider applications from self-employed individuals and company directors.
What is an Agreement in Principle?
An Agreement in Principle is an indication from a lender of how much they may be willing to lend. It is also a pre-agreement that your credit score is OK for the mortgage requested.
How long does a mortgage application take?
Timescales vary, but most applications take several weeks from submission to formal offer.
Should I use a mortgage broker?
A broker can help you understand your options and guide you through the application process.
Can I remortgage before my fixed rate ends?
Yes, although early repayment charges may apply.
How One Roof Financial Can Help
Choosing a mortgage can feel complicated, particularly with so many lenders and products available.
At One Roof Financial, we take the time to understand your circumstances and provide advice tailored to your needs.
We can help with:
- First-Time Buyer Mortgages
- Home Mover Mortgages
- Remortgages
- Self-Employed Mortgages
- Buy-to-Let Mortgages
- Mortgage Protection
Our goal is to help you find a mortgage that supports both your immediate needs and long-term financial goals.
Speak to One Roof Financial
If you’re looking for mortgage advice, we’d be delighted to help. You can book an appointment with a mortgage adviser, by getting in touch with us:
📞 Call: 01455 63 61 63
🌐 Visit: https://onerooffinancial.co.uk/contact/
Your home may be repossessed if you do not keep up repayments on your mortgage.
Blog written 25/08/2026
The information contained within this blog was correct at the time of publication (25/08/2026), and is subject to change.
