A British house from the street

Mortgages and later-life lending

Lenders are far pickier than their adverts suggest, and each is picky about something different.

You can spend six weeks on an application and find out at the end that you never fitted their rules, or that they will lend but at a worse rate. Every failed application also leaves a mark on your credit file. Knowing which lenders will say yes to someone like you is the whole job.

Deals also run out. When your fixed rate ends we look again, which sometimes means staying put and sometimes means moving. Do nothing and you drop onto the lender's standard variable rate, which is almost always the worst rate they offer.

Choosing the structure

Capital and interest
Monthly repayments pay off the amount borrowed as well as the interest. Provided every agreed payment is met, the loan is cleared at the end of the term.
Interest only
Repayments cover the interest alone. You need a separate savings or investment plan to build a lump sum large enough to repay the capital, and that responsibility is yours.
Offset
Balances in linked savings and current accounts are set against the loan, reducing the interest charged. You either pay less each month or clear the mortgage sooner.
Buy to let
Lenders usually want around a 25% deposit, income of roughly £25,000+ separate from the rent, expected rent covering about 125% of the repayments, and a maximum age near 75.
Adverse credit
A mortgage is possible with an imperfect credit history, though options are narrower and pricing less favourable. Knowing which lenders genuinely consider it avoids wasted applications.
Retirement interest-only
For older borrowers: you pay the interest monthly and the capital is repaid when the house is sold, you move into care, or you die.
A couple going through mortgage paperwork at their kitchen table

Equity release

Releasing capital from your home can clear debts, help children onto the property ladder or fund a more comfortable retirement, without selling or moving out. How much you can take depends on your age and the value of the property.

What you should understand first is how the interest rolls up over the years, what that leaves for the people who inherit, and what the alternatives are, including downsizing, a retirement interest-only mortgage, or doing nothing. You get all of it in writing with the numbers attached.

  • Equity release reduces the value of your estate and may affect entitlement to means-tested benefits.
  • A lifetime mortgage is a loan secured against your home.
  • It is not right for everybody, and it is advice we decline more often than we give.

How an application runs

  1. 1

    What you can borrow

    We look at income, commitments, deposit, credit history and your plans, and give you a realistic figure early, so nothing falls apart at underwriting.

  2. 2

    The search

    A detailed search of the suitable products available, then the options and a recommendation, comparing what each one actually costs over the deal period.

  3. 3

    The application

    We submit it, answer the lender's questions and keep you informed. A purchase involves a lender, a solicitor, a surveyor, an agent and often a chain, and somebody has to chase all of them.

  4. 4

    Protecting the borrowing

    A mortgage is usually the largest commitment you will take on. We will raise cover for it, and you are free to say no.

Your home may be repossessed if you do not keep up repayments on your mortgage. Some forms of buy-to-let and commercial mortgage are not regulated by the Financial Conduct Authority.

Questions people ask us

My fixed rate is ending. When should I start looking?

Around six months before. Most offers can be held for three to six months, so starting early lets you secure a rate and still take a better one if the market moves in your favour.

What will the advice cost me?

You will be told before you commit. Mortgage advice may be paid for by a fee, by commission from the lender, or a combination, and you get the figure in pounds either way along with what it buys.

How much can I borrow?

It depends on income, existing commitments, credit history, the deposit and the lender's own criteria, which vary considerably between lenders.

Can you help if I am self-employed?

Yes, and it is a common reason people come to us. Lenders treat self-employment very differently: some want two years of accounts, some three, some will use retained profits and some will not. Choosing the right lender first time is what the advice is for.

Do I have to have life insurance to get a mortgage?

No. UK lenders do not generally require it and a lender cannot insist you buy insurance from them. Buildings insurance usually is a genuine requirement, because it protects the property the loan is secured against.

Answered in full

Longer answers to the questions that come up most on this subject.

Is equity release a good idea?

For some people. What it costs over time, what it leaves behind, and the alternatives worth ruling out first.

Read the answer →

Start with a free conversation.

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. We will tell you honestly whether we can help.