Your home may be repossessed if you do not keep up repayments on a mortgage.
Quick answer
A mortgage is a long-term loan secured against a property. In the UK, most mortgages run for 25–35 years, with interest rates that may be fixed, variable, or tracking the Bank of England base rate. The type of mortgage, rate, and lender you choose can have a significant impact on your monthly payments and total cost - making comparison essential.
UK Mortgage Types - An Overview
There are several types of mortgage available to UK borrowers. The right choice depends on your risk appetite, how long you plan to stay in the property, and your financial circumstances. Below are the main categories.
First-Time Buyer Mortgages
Guidance on deposits, loan-to-value, and schemes available for first-time buyers.
Learn more →Fixed Rate Mortgages
Your interest rate is fixed for a set period. Monthly payments stay the same regardless of base rate changes.
Learn more →Tracker Mortgages
Rate tracks the Bank of England base rate, plus a fixed margin. Can rise or fall.
Learn more →Variable Rate Mortgages
Rate can change at the lender's discretion. Usually the standard variable rate (SVR).
Learn more →Mortgage Affordability
Understand how lenders calculate how much they will lend you.
Learn more →Mortgage Types Explained
A plain-English overview of all UK mortgage types in one place.
Learn more →What Affects Your Mortgage Rate?
Mortgage rates in the UK are influenced by several factors:
- Loan-to-Value (LTV): The lower your LTV (i.e. the bigger your deposit relative to the property value), the better the rates available
- Credit history: A strong credit profile opens more lender options and lower rates
- Income and affordability: Lenders assess your income, outgoings, and financial commitments
- Mortgage type: Fixed deals provide certainty; trackers and SVRs can move
- Lender criteria: Each lender has its own policies - some are more flexible on income types or employment status
Mortgages and Remortgages - Understanding the Difference
A mortgage is used to purchase a property. A remortgage replaces an existing mortgage deal - either with the same lender or a new provider. Most homeowners remortgage when their initial deal expires to avoid reverting to a higher Standard Variable Rate (SVR). Remortgaging can also release equity for home improvements or debt consolidation.
Is your current mortgage deal ending soon?
If your fixed or tracker deal ends in the next 3–6 months, this is a good time to start exploring remortgage options. See our remortgage guidance.
Important Regulatory Note
Mortgage advice in the UK is regulated by the Financial Conduct Authority (FCA). Fundslender provides information and guidance only - we do not provide regulated mortgage advice. If you are unsure which mortgage product is right for you, seek advice from an FCA-authorised mortgage adviser before applying.
Frequently Asked Questions
Most UK lenders require a minimum deposit of 5% of the property purchase price. However, a larger deposit (10–20% or more) typically gives you access to better interest rates and more lender options. The deposit required also depends on the lender's loan-to-value (LTV) criteria. First-time buyer mortgages are specifically designed to help those with smaller deposits.
A fixed-rate mortgage locks your interest rate for a set period (commonly 2 or 5 years). A tracker mortgage follows the Bank of England base rate, meaning your payments can go up or down. Fixed mortgages offer payment certainty; trackers can be cheaper when rates are low but carry the risk of rising payments if the base rate increases.
Most lenders will lend up to 4–4.5 times your annual income, though some specialist lenders go higher for certain professions. Affordability is assessed based on your income, existing debt, outgoings, and any dependants. Our mortgage affordability guide explains the full calculation.
You are not legally required to use a mortgage adviser, but mortgage advice is regulated in the UK and using an FCA-authorised adviser gives you access to regulated advice and certain protections. An adviser can search across a panel of lenders and may access deals not available directly. Fundslender does not provide mortgage advice - we explain options and guide you toward regulated advisers.
Most mortgage deals run for 2 or 5 years. When your initial deal ends, you typically move onto your lender's Standard Variable Rate (SVR), which is usually higher. It is worth starting to compare remortgage options around 3–6 months before your deal ends. Learn more about remortgaging.
Disclosure
Fundslender is a UK borrowing information and guidance website. We do not lend money directly. When you use this site, you may be connected with regulated lenders or brokers. We may receive a fee or commission if you proceed with a product found through our site. This does not affect our editorial independence or the information we provide. Rates, terms, and approval decisions are set by each individual lender and will vary based on your personal circumstances. Approval is not guaranteed. All borrowing involves risk. Always compare your options, read the full terms, and seek independent regulated financial advice if you are unsure whether a product is right for you. How we make money · Editorial policy