Mortgages kept simple.

A mortgage is a loan used to buy a property, with that property as security. With a repayment mortgage, your monthly payments cover interest and gradually repay the amount borrowed. If you make all the required payments, the mortgage is repaid at the end of the agreed term. An interest-only mortgage works differently: you need an acceptable plan to repay the original loan separately.

Lenders look at your income, regular spending, debts, deposit and credit history. They also assess the property and whether the payments would be affordable. An income multiple on its own does not give the full picture. Your adviser can check the likely borrowing range for your circumstances, while helping you keep to a monthly budget you are comfortable with.

Many mortgages start with a deposit of 5% or 10% of the property price, but the requirement varies by lender, property and circumstances. A larger deposit can give you more choice and access to lower rates. If you are moving home, equity from your sale may form part of your deposit. Keep money aside for the other buying costs too.

A fixed rate stays the same for an agreed period, which gives you certainty over the payment during that time. A variable rate can rise or fall. Trackers usually follow a named rate, such as the Bank of England base rate, while a standard variable rate is set by the lender. Your adviser will explain the costs and flexibility of each, including any early repayment charges.

Look at the payments and fees over the same period, not just the headline rate. There may be product, broker, valuation and legal fees. A lower rate with a larger fee is not always cheaper overall. Your adviser will explain any charges before you decide and show whether they are payable upfront or can be added to the mortgage, where they would attract interest.

You may be able to transfer your existing mortgage deal to a new property. This is called porting. It still needs the lender’s approval and checks on your circumstances and the new home. If you need extra borrowing, that part may be on a different rate. Compare the full cost of porting with a new mortgage, including any early repayment charges.

Most lenders allow some overpayments without an extra charge, but the allowance varies by product. Going over the allowance or repaying in full during a charge period can trigger an early repayment charge. Once that period ends, the charge usually no longer applies, although exit or administration fees may remain. Your mortgage offer sets out the limits and dates.

It is an indication of what a lender might lend, based on an initial assessment. It can help you set a budget and show an estate agent you have checked your borrowing position. It is not a mortgage offer or a guarantee. The lender may use a soft or hard credit search, so check first. A full application normally includes a hard credit check, which is recorded on your credit file.

Yes, self-employed applicants can get mortgages, subject to the lender’s checks. The evidence needed depends on how you earn your income. It may include accounts, tax calculations, tax year overviews, contracts and bank statements. Lenders assess income differently, so tell your adviser about your business structure and any recent changes. They can check which lenders are a suitable match.

Past credit problems do not always rule out a mortgage. Lenders consider what happened, how recently it happened and your finances now. Your deposit and the property also matter. Tell your adviser about any missed payments, defaults or county court judgments before applying, so they can check the criteria. Choice may be narrower, costs may be higher and approval is not guaranteed.

Usually proof of identity, address, income and deposit, plus recent bank statements and details of your financial commitments. A gifted deposit normally needs evidence of the source and a letter confirming the gift. If you already have a mortgage, have its details available too. Your adviser will give you a checklist for your chosen lender, which may ask for additional documents.

A full mortgage offer often takes several weeks, depending on the lender, your documents and the property valuation. Completing the purchase is a separate stage and also depends on legal work, the seller and any property chain. An agreement in principle is usually quicker, but it is not approval for the purchase. Your adviser can explain the likely timings and keep you updated.