Mortgage Guide: How to Secure a Home Loan That Fits Your Life

Looking for a mortgage that actually works for you? In the UK the market can feel like a maze, but the basics are simple. You need to know how much you can borrow, what lenders look at, and which loan type saves you money in the long run.

First step: check your credit score. Lenders use it to gauge risk, and a score above 700 usually lands you the best rates. If your score is lower, don’t panic – you can still get a mortgage, but expect a higher interest rate. Pull your report from Experian, Equifax or TransUnion, fix any errors, and pay down existing debts to give your score a boost.

Choosing the Right Mortgage Type

There are three common mortgage structures in the UK:

• Fixed‑rate – your interest stays the same for 2, 5 or 10 years. Great if you want predictable repayments.
• Variable (tracker) – the rate moves with the Bank of England base rate. Can be cheaper when rates fall, but you risk higher payments if they rise.
• Interest‑only – you pay only the interest each month and settle the principal later, usually with a savings plan. Only for confident borrowers who have a clear exit strategy.

Most first‑time buyers start with a 2‑ or 5‑year fixed deal because it protects them from sudden spikes while they settle into budgeting.

How Much Deposit Do You Need?

The classic rule of thumb is a 10% deposit, but you can put down as little as 5% with a Help to Buy equity loan or shared‑ownership scheme. A larger deposit lowers your loan‑to‑value (LTV) ratio, which usually gives you a better rate. If you’ve saved 20% or more, you’ll look like a low‑risk borrower to most banks.

Don’t forget additional costs: stamp duty, legal fees, survey fees, and moving expenses. Budget for at least 5% of the purchase price on top of your deposit to avoid surprise shortfalls.

When you’re ready to apply, gather these documents:

• Proof of identity (passport or driving licence)
• Proof of address (utility bill)
• Proof of income (payslips, tax returns if self‑employed)
• Bank statements for the last three months
• Details of any existing debts

Having everything at hand speeds up the decision and shows lenders you’re organized.

Once you’ve got your mortgage offer, double‑check the terms. Look for early repayment charges, flexibility to overpay, and what happens if you miss a payment. Some lenders let you overpay up to 10% a year without penalties – a handy tool to shave years off your loan.

Finally, shop around. Use a mortgage broker if you’re unsure; they can compare deals from several banks and sometimes unlock rates not advertised publicly. Remember, the lowest rate isn’t always the cheapest – factor in fees, arrangement costs, and any optional extras.

Securing a mortgage is a big step, but with a clear credit score, a realistic deposit plan, and the right loan type, you’ll be on solid ground. Keep the numbers in front of you, ask questions, and you’ll find a mortgage that matches your budget and future plans.