Mortgage FAQs

Most lenders will let you borrow between 4 and 4.5 times your annual income, though some will stretch to 5 or even 5.5 times for professionals and higher earners. For example, if you earn £40,000 a year, you might be able to borrow between £160,000 and £200,000. Joint applicants can combine their incomes.

Lenders also consider your outgoings, existing debts, and credit history when deciding the final figure. Use our mortgage calculator for a quick estimate, or speak to one of our advisors to find out exactly what you can borrow from the best lenders for your circumstances.

The minimum deposit for most residential mortgages is 5% of the property value. So on a £250,000 home, you'd need at least £12,500. However, a larger deposit — ideally 10% or more — unlocks better interest rates and a wider choice of lenders.

First-time buyers can also use schemes like Shared Ownership or the Lifetime ISA (LISA) to boost their deposit. For buy-to-let mortgages, most lenders require a minimum 25% deposit.

Beyond the deposit, typical house-buying costs include:

• Stamp Duty Land Tax (SDLT) — first-time buyers pay 0% on the first £300,000 on homes costing up to £500,000 (thresholds change, so we always confirm the current position for your purchase)
• Conveyancing/legal fees — typically £800–£1,800
• Surveyor/valuation fees — £400–£1,500 depending on the type
• Mortgage broker fee — NexMoney's typical fee is £375
• Lender arrangement fee — often £0–£2,000 (can usually be added to the loan)
• Removal costs & buildings insurance

We always help clients budget for these at the outset.

A mortgage application typically takes 2 to 6 weeks from submission to receiving a formal mortgage offer. The speed depends on the lender, the complexity of your application, and how quickly you provide supporting documents.

NexMoney prepares your full application documents in advance to avoid delays and chases lenders proactively on your behalf throughout the process.

A Decision in Principle (also called an Agreement in Principle or mortgage in principle) is a written indication from a lender that they would be willing to lend you a certain amount, subject to full application and valuation.

Estate agents typically require one before accepting an offer. It usually involves a soft credit check (which doesn't affect your credit score) and is valid for 60–90 days. NexMoney can arrange a DIP for you quickly as part of our free initial advice.

You'll typically need:

• Proof of identity (passport or driving licence)
• Proof of address (utility bill or bank statement from the last 3 months)
• Last 3 months' payslips and most recent P60 (if employed)
• 2–3 years' SA302s/tax returns or accounts (if self-employed)
• Last 3–6 months' bank statements
• Proof of deposit (savings statements or gift letter)
• Details of any existing credit commitments

NexMoney provides a personalised document checklist and reviews your documents before submission to catch any issues early.

A fixed rate mortgage locks your interest rate — and therefore your monthly payments — for a set period, typically 2, 3, or 5 years. This gives you certainty and protection against rate rises.

A tracker mortgage has an interest rate that moves in line with the Bank of England base rate plus a set margin. If the base rate falls, your payments decrease; if it rises, they increase. Most borrowers in the UK opt for fixed rates for the peace of mind they provide.

Remortgaging means switching your existing mortgage — either to a new deal with your current lender (a product transfer) or to a different lender entirely. The most common trigger is when your fixed rate period is about to end, at which point you'd typically move onto your lender's Standard Variable Rate (SVR) — usually much higher.

You should start looking at your options 3–6 months before your current deal expires. You might also remortgage to raise capital, consolidate debt, or benefit from an increase in your property's value. Learn more about remortgaging →

A buy-to-let (BTL) mortgage is specifically designed for properties you intend to rent out rather than live in. Lenders assess affordability differently for BTL — they focus on the rental income, which typically needs to cover 125–145% of the mortgage payment at a stress-tested rate.

Most BTL mortgages require a minimum 25% deposit and are arranged on an interest-only basis. BTL lending has its own tax and legal implications, so we recommend taking both mortgage and financial advice. Learn more about buy-to-let mortgages →

Porting means taking your existing mortgage deal with you when you move, keeping the same interest rate and lender. Whether you can port depends on your lender's policy. Most lenders will allow it in principle, but you'll need to pass a fresh affordability assessment for the new property.

If you need to borrow more, the additional amount will usually be at a new rate. NexMoney can assess whether porting makes financial sense versus remortgaging to a new lender when you move.

A whole-of-market broker can search mortgages from a wide range of lenders — typically hundreds — rather than being tied to just one bank or a small approved panel. This means they can find the most competitive deal for your specific situation, including specialist lenders who don't advertise directly to the public.

NexMoney is a whole-of-market broker. We're not tied to any single lender, and our advice is always focused on what's best for you — not what earns us the most commission.

Mortgage brokers are paid in two main ways: a broker fee charged directly to you, and/or a procuration fee (commission) paid by the lender when your mortgage completes.

At NexMoney, our typical broker fee is £375, which we always disclose upfront. On many products — particularly some remortgages — there is no fee to you at all. We will always be fully transparent about how we are remunerated before you proceed.

Lenders don't legally require life insurance, but it is worth considering. A decreasing term life insurance policy (mortgage life cover) is designed so the sum assured reduces broadly in line with your outstanding mortgage, and pays out to your beneficiaries if you die during the policy term. The payout can usually be used however your beneficiaries choose.

Protection insurance can be more affordable than many people expect, although the cost will depend on your individual circumstances and the cover you choose. NexMoney can arrange mortgage protection insurance alongside your mortgage. Learn more about our protection services →

Yes, it is possible to get a mortgage with bad credit, though your options depend on the nature and severity of the credit issues. Minor issues like a missed payment or small default (especially if over 3 years old) may have little impact. More serious issues like CCJs, IVAs, or bankruptcy will require a specialist lender.

NexMoney has experience arranging mortgages for clients with adverse credit and can advise on which lenders may be able to consider your circumstances, what rates may be available and how you might improve your credit profile over time. Acceptance is always subject to the lender's criteria and assessment.

Yes. Self-employed mortgage applications are assessed slightly differently, but many lenders will consider them. Lenders typically want to see 2–3 years of accounts or SA302 tax returns and will base your income on net profit, salary and dividends, or a 2-year average.

Some specialist lenders will consider just one year of trading. NexMoney has arranged mortgages for many self-employed clients — including sole traders, contractors, and limited company directors — and knows which lenders are most flexible.

The Help to Buy: Equity Loan scheme closed to new applications in October 2022 and is no longer available. However, first-time buyers still have access to:

• Shared Ownership — Shared Ownership lets you buy a share of a home and pay rent on the remainder. Under the model introduced in 2021, and continued under current Homes England programmes, the minimum initial share can be as low as 10%. Older Shared Ownership properties, particularly resale homes on older leases, may still require an initial purchase of between 25% and 75%, so the minimum is not always 10%. 75% is generally the maximum initial share, although you can usually increase your ownership later through staircasing, often up to 100% (subject to the lease and any restrictions in designated protected areas).
• Lifetime ISA (LISA) — earn a 25% government bonus on savings of up to £4,000/year
• First Homes — First Homes offers new-build homes at a minimum 30% discount to eligible first-time buyers and other qualifying groups, with discounts potentially increased to 40% or 50% in some areas. Buyers usually need to have a local connection or meet other eligibility criteria.

NexMoney can help you navigate these options and find a route onto the property ladder that suits your circumstances, in Bournemouth, Dorset and across the UK. Learn more about first-time buyer mortgages →