Buying your first property?
Read the First-time buyer guide for deposit, affordability and first mortgage questions.
Mortgages for buying a home
This page covers a new residential purchase, whether you are buying your first home or another property. For specialist guidance, see our First-time buyer or Home Mover pages.
Mortgages for buying a home
A purchase mortgage is borrowing used to buy a property. It is different from a remortgage, where a new mortgage replaces an existing loan. The right route depends on what you are buying and your wider circumstances.
Already own a home?
If you are selling and moving, see the Home Mover page. A property you intend to let may need a Buy to Let mortgage.
How much can you borrow to buy a house?
Mortgage affordability can depend on income, expenditure, loans, credit cards, childcare, deposit, mortgage term, credit profile, property type and the lender’s model. Joint income may be considered, but a salary multiple is not a guarantee.
What lenders may review
- Income and how it is earned
- Regular spending and committed expenditure
- Deposit and loan-to-value
- Credit history and existing borrowing
Buying within a sensible budget
Allow for mortgage payments, insurance, maintenance and purchase costs as well as the deposit. An initial estimate should be checked through a full affordability assessment.
Estimate how much you could borrow
Enter your total gross annual income to see two simple income-multiple illustrations. This is a starting point, not a lender affordability assessment.
Actual borrowing depends on income, expenditure, deposit, credit profile, term, property and lender criteria. The 5.5× illustration is not available from every lender and neither figure is a promise of borrowing or acceptance.
How much deposit might you need?
The deposit is the part of the purchase price you contribute yourself. A larger deposit generally reduces the mortgage LTV, but the property, lender and applicant criteria still determine what may be available. The source of the deposit, including a gifted deposit, may also need to be evidenced. Use our deposit calculator to estimate the deposit, then use our LTV calculator to explore an illustration.
This example is 90% LTV. It is an illustration only, not a promise of a particular mortgage.
Keep a separate allowance for legal work, surveys, fees, tax and moving costs rather than using every pound for the deposit.
Which mortgage types could you consider?
Mortgage types have different features and risks. The suitable option depends on your plans, affordability and the terms available at the time.
Fixed-rate mortgage
The interest rate is fixed for an agreed period, giving payment certainty during that period. Early repayment charges may apply.
Tracker mortgage
The rate usually follows a reference rate by a set margin, so payments can rise or fall.
Variable-rate mortgage
The lender’s variable rate can change according to its terms. Read how changes could affect payments.
Repayment mortgage
Monthly payments cover interest and part of the capital, subject to keeping to the mortgage terms.
Interest-only mortgage
Payments cover interest, so the capital remains due. An acceptable repayment strategy is required and this option is not suitable or available for everyone.
Where does an Agreement in Principle fit?
An Agreement in Principle, also called a Mortgage in Principle or Decision in Principle, is an initial indication based on information available at that point. Buyers often use one to set a realistic budget before making an offer, but it is not a formal mortgage offer and does not guarantee acceptance.
The property purchase mortgage process
Review affordability
Consider income, expenditure, deposit and all purchase costs.
Get an Agreement in Principle
Use it as a guide when looking at properties.
Find a property
Check the property type and price fit your plans.
Make an offer
Proceed subject to the legal and mortgage process.
Submit the application
Provide accurate documents for underwriting.
Valuation and survey
Understand that these serve different purposes.
Mortgage offer and legal work
Your conveyancer progresses the purchase.
Exchange and completion
Completion is when the purchase and mortgage complete.
Is a mortgage valuation the same as a property survey?
No. A lender’s mortgage valuation is primarily an assessment of the property as security for the loan. It should not automatically be treated as a detailed inspection of the property’s condition. A survey is a separate service you arrange if you want more information about defects or maintenance.
What are the costs of buying a property?
Budget for costs outside the deposit, including:
- Solicitor or conveyancer fees and searches
- Mortgage, product or broker fees where applicable
- Valuation and any survey you choose
- Property transaction tax where applicable
- Buildings insurance and other cover
- Moving costs and early repairs
Property tax varies by location: England and Northern Ireland use Stamp Duty Land Tax, Wales uses Land Transaction Tax and Scotland has a separate system.
What documents may be needed?
A lender may request identification, address history, proof of income, bank statements, deposit evidence, details of commitments and information about the property. Requirements vary, especially for self-employed applicants; see the Self-employed mortgages guide where relevant.
Purchase mortgage FAQs
What is a purchase mortgage?
A purchase mortgage is borrowing used to buy a property. It is different from remortgaging, which replaces an existing mortgage.
How much can I borrow to buy a house?
Lenders assess income, expenditure, credit commitments, deposit, term, property and their affordability model. Use our borrowing calculator for an initial illustration. No simple salary multiple guarantees the amount.
How much deposit do I need?
The deposit depends on the lender, property and your circumstances. Try our deposit calculator for an illustration. A larger deposit usually means a lower LTV, but it does not guarantee a particular product or rate.
What is LTV?
Loan-to-value is the mortgage balance divided by the property value, multiplied by 100. Use our LTV calculator for an illustration. For example, £180,000 on a £200,000 property is 90% LTV.
Should I get an Agreement in Principle before viewing houses?
It can help you set a realistic budget before making an offer, but it is an indication rather than a formal mortgage offer.
How long does a mortgage offer last?
The period varies by lender and product. Check the offer conditions and allow time for the purchase and legal process.
What happens after my offer on a house is accepted?
You normally submit the full mortgage application, arrange valuation and survey work, instruct a conveyancer and progress towards exchange and completion.
What’s the difference between a mortgage valuation and a survey?
A lender valuation is primarily for the lender’s security assessment. A survey is a separate inspection you arrange to understand the property’s condition.
Can I change lender before completion?
It may be possible, but a new application can affect timing, costs and affordability. Discuss the implications before changing course.
Can I buy a property jointly?
Yes, joint applications are possible, subject to lender criteria. Applicants should understand how ownership and liability will be recorded legally. See our joint borrower guidance for one specialist ownership route.
What documents are needed for a mortgage application?
Lenders may ask for identification, address history, income evidence, bank statements, deposit evidence and details of commitments. Requirements vary.
How long does buying a house take?
Timescales vary with the property, chain, lender, valuation, legal work and local process. There is no single timetable for every purchase.
Ready to explore your purchase mortgage options?
A mortgage advisor can review the property, deposit, income and circumstances with you and explain potentially suitable routes. Rates, products and lender criteria can change.