Mortgage questions
Buying a first home, remortgaging when a deal ends and buying a property to let each come with their own lending tests and their own property tax.
Buying a first home, remortgaging when a deal ends and buying a property to let each come with their own lending tests and their own property tax.
The property tax on a purchase depends on where the home is. England and Northern Ireland charge Stamp Duty Land Tax, Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, each with its own rates and reliefs.
The adviser for this subject: Mike Chan
gov.uk, Revenue Scotland and the Welsh Government, checked 26 October 2026. 2026/27 rates.
What do first-time buyers need to know about mortgages?
An overpayment reduces the balance the interest is charged on. Your lender sets how much you can overpay each year without an early repayment charge, so check that allowance before you pay anything extra.
See what an overpayment does to your term and interest with our mortgage overpayment calculator, and read should I overpay my mortgage? for how it compares with paying into a pension or keeping savings.
Interest on a lifetime mortgage rolls up unless you pay it. The debt reduces your estate and can affect means-tested benefits.
Read more →The 25% bonus can be withdrawn without charge for a first home costing £450,000 or less, or at 60. Other withdrawals carry a 25% charge.
Read more →MoneyHelper suggests starting to shop around at least six months before your fixed or discounted deal ends. When should I remortgage?
It depends on the rates and fees each lender offers you. A product transfer can avoid legal and valuation costs, and a remortgage opens up deals from other lenders. Compare the total cost of each over the deal period.
In England and Northern Ireland, nothing on the first £300,000 and 5% from £300,001 to £500,000, with no relief above £500,000. In Scotland the nil rate band rises to £175,000. Wales has no first-time buyers' relief.
MoneyHelper notes that interest-only is still offered on buy-to-let. The capital is owed in full at the end of the term. You need a plan to repay it, such as selling the property.
Yes, for a first home costing £450,000 or less, bought with a mortgage at least twelve months after your first payment in. Is a Lifetime ISA worth it?
Each lender decides from your income, commitments, credit history and deposit, and their criteria differ. We can work out a figure with you before you apply.
Your home may be repossessed if you do not keep up repayments on your mortgage. The Financial Conduct Authority does not regulate buy-to-let mortgages taken out for business purposes. Tax treatment depends on your circumstances and on current rules, both of which can change.
Look at your options before your fixed or discounted deal ends, and count any early repayment charge in the comparison.
Read the answer →The lender tests the rent against the payment, interest is relieved at 20% for individual landlords, and an additional home costs more in property tax.
Read the answer →Lenders assess your income, outgoings, credit history and deposit. First-time buyer relief differs between England and Northern Ireland, Scotland and Wales.
Read the answer →Overpaying cuts the interest you pay and can shorten the term. Check your lender's allowance and compare it with other debts, pension contributions and savings.
Read the answer →
Mortgage Adviser
Twenty statements about money that sort into four patterns, with a written report on the pattern your answers fit.
Your first call is with an Account Manager and is at no cost to you. Tell us what is on your mind: a pension you have lost track of, a fixed rate ending, a will you keep meaning to write.