Mortgages
Choosing between different mortgages is one of the biggest financial decisions you’ll make, whether you’re buying your first home, moving to a new property, investing in property or reviewing your existing mortgage.
Finding the Right Mortgage for Your Circumstances
Different lenders have different affordability assessments, lending criteria and product requirements, so finding the right mortgage isn't always as simple as choosing the lowest advertised interest rate.
At Allisons Financial, we provide personalised mortgage advice designed around your circumstances. We’ll help you understand your borrowing options, consider affordability, compare suitable mortgages and guide you through the application process from beginning to end.
By understanding your finances, property plans and longer-term goals, we can help you make an informed decision and find a mortgage that’s appropriate for your needs.
Understanding Mortgages and How They Work
A mortgage is a loan used to purchase or refinance a property, with the property itself acting as security for the borrowing. You normally repay the mortgage over an agreed term, with the amount you pay each month influenced by factors including the amount borrowed, interest rate, repayment method and length of the mortgage. There are many different mortgages available, and the options you’re eligible for can depend on your income, deposit or existing equity, credit history, financial commitments and the type of property involved.
The mortgage that’s right for one person may not be suitable for another. That’s why looking beyond the headline rate is important. Product fees, early repayment charges, incentives, flexibility and the overall cost of borrowing can all affect which option is most appropriate. At Allisons Financial, we’ll explain these differences clearly and help you understand what they mean for your individual circumstances.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Which Mortgages Could Be Right for You?
The mortgage you need will largely depend on what you’re trying to achieve. Someone purchasing their first property will have very different priorities from a landlord buying an investment property or an existing homeowner approaching the end of a fixed-rate deal. Our advisers support clients across a wide range of mortgage circumstances.
First Time Buyer Mortgages – Buying your first property is exciting, but deposits, affordability calculations, A Mortgage in Principle and lender criteria can make the process feel unfamiliar. Our First Time Buyer Mortgages advice can help you understand how much you may be able to borrow, what deposit you might need and what happens throughout the home-buying process. Getting advice before you begin seriously viewing properties can also help you approach your search with a clearer understanding of your budget.
Moving Home Mortgages – Moving home is an opportunity to reassess your mortgage arrangements as well as your property needs. If you’re Moving Home, you may need to consider whether your existing mortgage can be transferred to your next property, whether additional borrowing is required or whether arranging a new mortgage could be more appropriate. We’ll help you understand the available options and how they fit alongside the sale of your current home and purchase of your next one.
Remortgages – If your existing mortgage deal is approaching its end, your circumstances have changed or you want to review your borrowing, it may be worth exploring your Remortgage options. Remortgaging involves replacing your current mortgage with another mortgage, potentially with your existing lender or a different one depending on your circumstances and objectives. There can be costs and early repayment charges to consider, so it’s important to look at the overall financial position rather than focusing on the interest rate alone.
Buy to Let Mortgages – Buying property to rent out generally requires a mortgage designed specifically for landlords. Buy to Let Mortgages are assessed differently from standard residential borrowing, with lenders typically considering factors such as the expected rental income, property, deposit and applicant circumstances. Whether you’re considering your first investment property or already have experience as a landlord, we can help you understand the mortgage options available.
What Types of Mortgages Are Available?
Mortgage products can work in different ways, and understanding the main differences can make comparing your options considerably easier.
A fixed-rate mortgage provides an agreed interest rate for a set period. During that fixed period, your mortgage payments relating to capital and interest will generally remain consistent, providing greater certainty when budgeting. Once the fixed period ends, the mortgage will usually move onto a rate specified by the lender unless you arrange another deal.
A tracker mortgage normally follows a specified external rate, such as the Bank of England Bank Rate, plus an agreed margin. This means your mortgage rate and monthly payments can rise or fall when the rate being tracked changes.
Other variable-rate mortgages can also change during the mortgage term in accordance with the conditions of the product, meaning payments may increase or decrease over time.
You will also need to consider how the mortgage itself is repaid. With a repayment mortgage, your monthly payments normally cover both interest and some of the amount originally borrowed, with the intention that the mortgage is repaid by the end of the agreed term if all required payments are made.
With an interest-only mortgage, monthly payments generally cover the interest rather than reducing the original loan balance. You therefore need a credible strategy for repaying the capital at the end of the mortgage term, and lenders apply specific eligibility requirements.
The most suitable option will depend on your individual circumstances, attitude to changing payments, plans for the property and wider financial position.
How Is Affordability Assessed for Mortgages?
One of the first questions many people ask is how much they can borrow.
There isn’t one calculation that applies to every mortgage applicant. Individual lenders assess affordability differently and consider your wider financial position before deciding how much they’re prepared to lend.
Your income is an important part of that assessment, but lenders may also consider regular expenditure, existing loans and credit commitments, dependants, credit history, mortgage term, deposit or equity and other aspects of your circumstances.
This means two applicants with the same salary could potentially receive different affordability outcomes.
Our Mortgage Affordability Advice can help you understand how your circumstances may be viewed by lenders before you begin an application. You can also use our Affordability Calculator for an initial indication of potential borrowing and our Repayment Calculator to explore how different mortgage amounts, terms and interest rates could affect monthly repayments.
It’s also worth remembering that the maximum amount a lender may be prepared to offer isn’t necessarily the amount you should borrow. Your mortgage needs to sit comfortably alongside household bills, other commitments and the lifestyle you want to maintain.
Mortgages for Different Financial Circumstances
Not every mortgage application fits neatly into a standard box.
The way you earn your income, how long you’ve been working, whether your earnings fluctuate and the number of income sources you have can all influence how different lenders assess your application.
If you run your own business, our Self Employed Mortgages advice can help you understand how lenders may assess income from self-employment and what financial information could be required.
For professionals working on fixed-term or ongoing contracts, Contractor Mortgages may require a lender that understands how your particular income is structured rather than relying solely on conventional employment criteria.
Some applicants receive salary, bonuses, overtime, commission, investment income or earnings from several different sources. Our guidance on Mortgages with Complex Income and Multiple Income Stream Mortgages can help where your overall financial picture requires a more detailed assessment.
We can also support borrowers whose needs change later in life. Later Life Mortgages can involve different affordability considerations and lending criteria, making personalised advice particularly important when assessing the available options.
Having circumstances that differ from a conventional salaried application doesn’t automatically mean obtaining a mortgage is impossible. It simply makes understanding individual lender criteria more important.
What Should You Compare When Choosing Between Mortgages?
It can be tempting to assume that the mortgage with the lowest advertised interest rate is automatically the best option. In reality, there’s much more to compare.
A mortgage may include a product or arrangement fee, and there may also be valuation costs, legal costs or other charges depending on the product and transaction. Some mortgages offer incentives, while others may have early repayment charges if you repay or change the mortgage during a particular period.
The length of the initial mortgage deal also matters. A lower rate available for a shorter period won’t necessarily be more suitable than a slightly different rate with features that better match your circumstances.
Your mortgage term can have a significant effect too. Extending the term may reduce monthly payments, but borrowing over a longer period will generally mean paying interest for longer.
When comparing mortgages, we’ll help you consider the complete picture rather than looking at one headline figure in isolation. That includes the rate, fees, product features, repayment structure and how well the mortgage fits your plans.
Why Use an Adviser When Comparing Mortgages?
The mortgage market can be difficult to navigate without professional guidance because every lender has its own lending criteria, affordability calculations and approach to different circumstances.
A mortgage adviser can look at your wider financial position before researching suitable borrowing options. This can be particularly valuable if you’re a first-time buyer, self-employed, moving home, investing in property or have income that doesn’t fit conventional lender criteria.
At Allisons Financial, we’ll explain the mortgage options available to you in straightforward terms, helping you understand both the benefits and important considerations before making a decision.
We’ll also support you with the mortgage application itself, helping to ensure the relevant information and documentation is provided and answering questions as your case progresses.
This means you don’t have to navigate lender criteria, mortgage terminology and the application process alone.
Why Choose Allisons Financial for Your Mortgage?
At Allisons Financial, we believe mortgage advice should start with understanding you.
Before making a recommendation, we’ll take time to understand your finances, property plans and longer-term objectives. That allows us to look beyond individual mortgage products and focus on finding an option that’s suitable for your circumstances.
Our advice is independent, meaning we’re not tied to one particular mortgage lender. We can consider options from across the mortgage market and explain why a particular solution may be appropriate for you.
You’ll also have support throughout the mortgage process. From your initial conversations and affordability assessment to the application and mortgage offer, our team will be available to keep you informed and help you understand the next step.
Frequently Asked Questions About Mortgages
How much deposit do I need for a mortgage?
The deposit required depends on the lender, mortgage product, property and your circumstances. Some residential mortgages may be available at higher loan-to-value levels, while providing a larger deposit can potentially give you access to different product options.
How much can I borrow on a mortgage?
The amount you may be able to borrow depends on the lender’s affordability assessment. Factors can include your income, expenditure, existing financial commitments, deposit or equity, credit history and mortgage term.
What type of mortgage should I choose?
The right mortgage depends on your circumstances and priorities. Fixed, tracker and other variable-rate mortgages all work differently, so it’s important to compare their costs, features and potential risks rather than choosing on interest rate alone.
What's the difference between a fixed and variable mortgage?
A fixed-rate mortgage provides an agreed interest rate for a defined period, whereas the rate on a variable mortgage can change. The most appropriate option depends on your circumstances and preferences.
How long does it take to get a mortgage?
Mortgage timescales vary depending on the lender, complexity of the application, property and how quickly requested information is provided. Purchases can also be affected by valuations, conveyancing and the wider property chain.
Can I get a mortgage if I'm self-employed?
Yes, being self-employed doesn’t automatically prevent you from obtaining a mortgage. Lenders have different requirements for demonstrating self-employed income, so the options available will depend on your business, accounts, income and wider circumstances.
When should I speak to a mortgage adviser?
It can be helpful to speak to a mortgage adviser early, particularly before viewing properties, making an offer or when an existing mortgage deal is approaching its end. This gives you time to understand your affordability, potential options and the next steps before making important financial decisions.
Let's Find the Right Mortgage for You
Whatever stage of the property journey you’re at, getting the right mortgage advice can help you understand your options and move forward with greater confidence. Whether you’re buying your first home, moving, remortgaging, investing in property or have circumstances that require a more personalised approach, Allisons Financial is here to help.
We’ll take the time to understand what you want to achieve, research suitable mortgages and guide you through the process from your first conversation through to completion. Get in touch with Allisons Financial today to discuss your mortgage options and take the next step with confidence.
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