THE ULTIMATE UK MORTGAGE GUIDE 2026
The Ultimate UK Mortgage Guide 2026
Everything you need to know about mortgages in plain English: how they work, the main types, how much you can borrow, what it costs and how the process runs. Then go deeper with our guide for your situation.
Written and reviewed by Davi Thakar, CeMAP · Last reviewed 16 October 2026
Guides for your situation
Each guide goes into full detail for one type of borrower, with worked examples, what lenders look for and the mistakes to avoid.
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What is a mortgage?
A mortgage is a loan to buy property, secured on that property. You repay it over a set term, often 25 to 35 years, with interest. If you do not keep up the payments, the lender can repossess the property to recover what it is owed. Most residential mortgages are regulated by the Financial Conduct Authority, which sets rules on how lenders check affordability and how advice is given. Most buy-to-let, commercial and bridging lending is not regulated.
What types of mortgage are there?
| Type | How it works | Suits you if |
|---|---|---|
| Fixed rate | Rate fixed for a set period, usually 2, 5 or 10 years | You want certainty on payments |
| Tracker | Follows Bank Rate plus a set margin | You can cope if payments rise and want to benefit if they fall |
| Standard variable rate | The lender's default rate after a deal ends. It can change at any time | Rarely the best choice for long |
| Discount | A set amount below the lender's standard variable rate | You want a variable rate and accept the lender sets it |
| Offset | Savings reduce the balance you pay interest on | You keep large savings and want flexibility |
You also choose how to repay. With a repayment mortgage, each payment covers interest and some of the loan, so it is cleared by the end of the term. With interest only, you only pay the interest and must repay the loan at the end from another source. Interest only is common for buy-to-let and harder to get on a home. See our interest only vs repayment calculator.
How much can you borrow?
Lenders start with an income multiple. Many cap most borrowing at around 4.5 times income, with some going higher for certain incomes and professions. Then they run a full affordability check on your outgoings, debts, dependants and credit, and test whether you could still pay if rates rose. The affordability check, not the multiple, decides the final figure. Try our affordability calculator for a quick estimate.
How much deposit do you need?
| Deposit | Loan-to-value | What to expect |
|---|---|---|
| 5% | 95% | The minimum for most home buyers. Fewer lenders and higher rates |
| 10% | 90% | More lenders and lower rates than at 95% |
| 15% to 25% | 85% to 75% | Rates usually improve at each step. 25% is the usual minimum for buy-to-let |
| 40% | 60% | Usually the lowest rates available |
First-time buyers can read more in our deposit guide.
How does the term change what you pay?
| Term | Monthly payment | Total interest |
|---|---|---|
| 15 years | About £1,677 | About £101,800 |
| 20 years | About £1,421 | About £141,100 |
| 25 years | About £1,276 | About £182,900 |
| 30 years | About £1,186 | About £227,100 |
| 35 years | About £1,127 | About £273,300 |
Illustration only: a £200,000 repayment mortgage at 5.9% for the whole term. In practice your rate will change when each deal ends. Stretching from 25 to 35 years cuts the payment by about £149 a month but adds about £90,400 of interest. See our repayment calculator.
How does the mortgage process work?
- Free consultation. Your plans, income, credit and deposit.
- Agreement in principle. A lender's indication of what it may lend, so your offer is taken seriously.
- Find a property and agree a price.
- Full application. With payslips or accounts, bank statements, ID and proof of deposit.
- Valuation and underwriting. The lender checks the property and your application.
- Mortgage offer. Usually valid for around six months.
- Exchange and completion. Your solicitor handles the legal work. The money is released and you get the keys.
What does getting a mortgage cost?
| Cost | What to know |
|---|---|
| Stamp Duty | Depends on the price and whether you are a first-time buyer, mover or buying an additional property. See our Stamp Duty guide |
| Lender fees | Product fees vary. A lower rate with a big fee is not always cheaper |
| Valuation and survey | Some deals include a free valuation. A survey is separate and recommended |
| Legal fees | Your solicitor or conveyancer |
| Broker fee | Ours is £499 for a straightforward case: £299 on application and £200 on offer. The £299 is refundable if your application is declined. The fee is £999 where income is complex or there are some credit problems, and £1,499 for heavy adverse credit such as a bankruptcy, as far more work is involved. These are paid the same way: part on application, refundable if the mortgage is declined, and the rest when the mortgage offer is issued. We confirm your fee before you proceed. |
How do you protect your mortgage?
Your mortgage is only useful if you can keep paying it. Buildings insurance is required by lenders. Life insurance, critical illness cover and income protection are optional but worth considering, especially if others rely on your income. We can talk you through protection alongside your mortgage. Our protection insurance guide explains decreasing term life insurance, critical illness cover and income protection insurance in detail.
What mistakes should you avoid?
- Only asking your bank. You only see its deals.
- Sitting on the standard variable rate. When a deal ends, review it straight away.
- Borrowing the maximum without a budget. Plan for rates being higher when your fix ends.
- Comparing rates, not total cost. Fees can wipe out a lower rate.
- Applying before checking criteria. A decline can leave a search on your credit file. Match the lender first.
UK Mortgage FAQs
How much can I borrow for a mortgage?
Many lenders cap most borrowing at around 4.5 times income, with some going higher for certain incomes and professions. The real limit comes from the lender's affordability check on your income, outgoings and credit.
How much deposit do I need?
Usually at least 5% for a home you will live in, 25% for buy-to-let and 30% to 40% for commercial property. A bigger deposit usually means a lower rate.
Should I fix my mortgage?
A fixed rate gives certainty on payments. A tracker can fall or rise with Bank Rate. Which suits you depends on your budget and how much risk you can live with.
What is the Bank Rate now?
Bank Rate was held at 3.75% on 17 September 2026. The next decision is due on 5 November 2026. See our live rate tables for current deals.
How long does a mortgage take?
An agreement in principle can take minutes. A full application to offer often takes 2 to 6 weeks, and the whole purchase usually takes a few months because of the legal work.
Do I need a mortgage broker?
You do not have to use one, but a whole-of-market broker compares lenders your bank cannot offer, including specialist lenders, and handles the application for you.
Can I get a mortgage with bad credit or if I am self-employed?
Often, yes. Specialist lenders consider past credit problems and complex income. Matching you to the right lender before you apply is what makes the difference.
Is the first consultation free?
Yes. For a straightforward case our fee is £499: £299 on application and £200 when your offer is issued. The £299 is refundable if your application is declined. The fee is £999 where income is complex or there are some credit problems, and £1,499 for heavy adverse credit such as a bankruptcy, as far more work is involved. These are paid the same way: part on application, refundable if the mortgage is declined, and the rest when the mortgage offer is issued. We confirm your fee before you proceed.
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Content written and reviewed by Davi Thakar. Last reviewed 16 October 2026. Market figures from the Bank of England and Moneyfacts as at 15 October 2026. Your home may be repossessed if you do not keep up repayments on your mortgage. This information is not a personal recommendation.