Skip to main content
Bank Rate 3.75%SONIA 3.73%

Mortgage FAQ

Common mortgage questions, answered.

Plain answers to the questions we hear most often — whether you are buying your first home, purchasing from abroad, navigating a visa, running your own business or building a portfolio. If your question is not here, speak to an adviser directly.

About Lockhart Murphy

Who are Lockhart Murphy?
Lockhart Murphy is a whole-of-market mortgage and protection advisory firm. We are a trading style of Mortgage Force (UK) Ltd, authorised and regulated by the Financial Conduct Authority (FCA Number: 843041). We have arranged over £250 million in lending for clients across residential, buy-to-let, specialist finance and international property markets, with access to over 90 lenders including specialist lenders not available directly to the public.
Are you regulated by the FCA?
Yes. Lockhart Murphy is a trading style of Mortgage Force (UK) Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA Number: 843041, Companies House Number: 09394027). You can verify this on the FCA's Financial Services Register at fca.org.uk.
What makes Lockhart Murphy different from a high-street bank or building society?
We are whole-of-market brokers, which means we can search and compare mortgage products from over 90 lenders — including specialist lenders that do not deal directly with the public — rather than being limited to one lender's own product range. For straightforward cases this can mean access to more competitive rates; for complex cases (overseas income, visa status, professional athlete contracts, self-employment) it means access to lenders whose criteria are specifically designed for those situations.
How much does it cost to use Lockhart Murphy?
We charge a broker fee for our advice. The exact fee depends on the complexity of your case and will be confirmed in writing before you commit to anything. We also receive a procuration fee from the lender on completion, which is disclosed to you as part of the advice process. There is no charge for an initial conversation or a Mortgage Passport assessment.
Where are you based and who can you help?
Our advisers are based across the UK and work with clients throughout England, Wales and Scotland. We also work with international clients — people based in the UAE, GCC region, Europe and other major markets — looking to purchase or refinance UK property. Our advisers hold relevant qualifications in mortgage and protection advice and several specialise in complex cases involving overseas income, visa status or professional sport contracts.
How do I get started?
The best starting point is our Mortgage Passport — a multi-step qualification tool that gives you a personalised borrowing estimate and highlights any complexity in your case before you speak to an adviser. Alternatively, you can contact us directly. There is no obligation at the initial stage.
What is the Mortgage Passport?
The Mortgage Passport is a digital qualification tool on our website. It asks about your income, employment type, visa status, deposit and the property you are looking to purchase, and produces a personalised borrowing estimate along with an assessment of your case complexity. It is not a credit check and does not leave a footprint on your credit file. The output helps both you and your adviser understand what is realistically available before any formal application is made.

Mortgage Eligibility

How much can I borrow?
Most lenders base their maximum lending on a multiple of your gross annual income — typically 4 to 4.5 times for standard applicants. Some specialist lenders will lend up to 5 or 5.5 times income for higher earners or specific professions. The actual amount also depends on your outgoings, existing debt commitments and the lender's affordability model. For accurate figures specific to your circumstances, use the Mortgage Passport or speak to an adviser directly.
What is the minimum deposit for a UK mortgage?
For most residential mortgages, the minimum deposit is 5% of the purchase price (95% LTV). However, the products available at 5% are limited and the interest rates are higher than at larger deposit tiers. A 10% deposit (90% LTV) opens a wider range of products. Some applicant types — foreign nationals without ILR, certain visa holders, non-UK-resident buyers — face higher minimum deposit requirements, typically 20–25%, depending on lender and circumstances.
Does my credit score affect my mortgage application?
Yes, but lenders do not all use the same scoring model — and no lender sees the score your credit reference agency shows you. What matters is the underlying data: payment history, missed payments, defaults, CCJs, bankruptcies, the length of your credit history in the UK and how recently any adverse events occurred. A poor credit score does not automatically prevent you from getting a mortgage, but it typically means fewer lender options and higher rates. Specialist lenders exist for applicants with adverse credit histories.
Can I get a mortgage if I have a county court judgement (CCJ)?
Yes — but the options depend on the age and size of the CCJ, whether it has been satisfied and your overall credit profile. Some specialist lenders will consider CCJs registered within the past 12 to 36 months; others require a longer clear period. In most cases a larger deposit improves the available options. We assess adverse credit cases individually to match them with the lenders most likely to proceed.
Can I get a mortgage if I am on a fixed-term contract?
Yes. Fixed-term contracts are considered by many lenders, though the assessment differs from permanent employment. Key factors are: how long the contract has been running, your track record of contract renewals or continuous employment in the same field, and how much time remains on the current contract relative to the mortgage term. Day-rate contractors and umbrella company workers have their own assessment approaches — see the self-employed section for more detail.
I was recently declined by my bank. What should I do?
Do not apply to another lender immediately. A credit search on a declined application leaves a footprint on your file; multiple searches in a short period can make your profile appear more risky to subsequent lenders. Instead, find out why the first lender declined — then speak to a whole-of-market broker who can identify lenders whose criteria fit your actual situation, rather than applying speculatively. Most declines from high-street lenders happen because the lender's criteria do not fit the case, not because the borrower is fundamentally unacceptable.

Foreign Nationals & Visa Holders

Can I get a UK mortgage without Indefinite Leave to Remain (ILR)?
Yes. A number of specialist lenders offer mortgages to applicants without ILR, provided certain criteria are met. The key variables are visa type, time remaining on the visa, income level, deposit size and UK credit history. Some visa types — Skilled Worker, Health and Care — can access up to 90% LTV (10% deposit) under the right conditions. Other visa types typically require a higher deposit, usually 20–25%.
What deposit do I need on a Skilled Worker visa?
The minimum deposit depends on your income and the specific lender. Higher earners — broadly, those earning above c.£75,000 — may be able to access up to 90% LTV (10% deposit) through specialist lenders, provided there is at least 12 months remaining on the visa at application. Lower income applicants on a Skilled Worker visa typically need a 25% deposit. The deposit requirement is one lever; there are also income and employment conditions attached.
Can I get a mortgage on a Graduate visa?
Yes — but the Graduate visa is assessed differently from the Skilled Worker visa. The Graduate visa is unsponsored, meaning there is no employer sponsor licence for lenders to use as a stability signal. As a result, the specialist lender panel is narrower and the deposit requirements are typically higher (15–25% in most cases). Strong, stable UK employment in a professional role and a clean UK credit history both improve the position. Some lenders will consider a 10% deposit for Graduate visa holders in specific circumstances, but this is not widely available.
Can I get a mortgage on a Spouse visa?
Yes. Sole applications where only the Spouse visa holder is named on the mortgage typically require a 25% deposit minimum, as the visa is seen as a more temporary status by lenders. Joint applications — where the other applicant is a British national or holds ILR — can often access standard deposit tiers, as the joint applicant's permanent status anchors the case. Both incomes can generally be included.
Is pre-settled status the same as ILR for mortgage purposes?
No — but specialist lenders assess pre-settled status applicants more generously than some applicants expect. Pre-settled status is a temporary status under the EU Settlement Scheme; settled status is the permanent equivalent and is treated similarly to ILR by most lenders. However, a number of specialist lenders will consider pre-settled status applicants with strong financial profiles and deposit levels from 5% upwards. The outcome depends heavily on overall financial strength and lender selection.
Can I get a mortgage on a Youth Mobility visa?
Yes — but the lender pool is narrow. The Youth Mobility visa is an unsponsored route with a maximum two-year term, and lenders cannot use an employer sponsor licence as a stability indicator. Most specialist lenders who consider Youth Mobility applications require at least a 20–25% deposit, permanent UK employment and a minimum of 12 months remaining on the visa at application. If you are in the process of switching to a Skilled Worker visa, timing the mortgage application after the switch typically produces better terms.
How does visa time remaining affect my mortgage?
Most specialist lenders who offer mortgages to visa holders without ILR require at least 12 months remaining on the visa at the point of application. The more time remaining, the stronger the application — a visa expiring within 12 months of your application date will severely limit the available lender pool. Importantly, the mortgage term can extend beyond the current visa expiry date; lenders assess the pathway to continued residence, not just the current expiry.
I have no UK credit history. Can I still get a mortgage?
Yes. A number of specialist lenders work with applicants who have limited or no UK credit history — particularly those who have recently arrived in the UK. The approach varies by lender: some will accept overseas credit references, some will consider the absence of UK credit history as contextually neutral (rather than adverse) for recently arrived applicants, and some will require a larger deposit to compensate for the thinner credit profile. The most important step is to start building a UK credit footprint as soon as you arrive — a credit card used lightly and cleared monthly each month is the most straightforward way.

Self-Employed & Complex Income

Can self-employed people get mortgages on the same terms as employed applicants?
Broadly yes, though the documentation requirements are more extensive and the lender pool is smaller than for straightforward PAYE employment. Most lenders require a minimum of two years' accounts or SA302 tax calculations and corresponding tax year overviews from HMRC. A small number of specialist lenders will consider one year's accounts in certain circumstances. The income figure used for affordability depends on the business structure.
What income do lenders use for self-employed applicants?
For sole traders, most lenders use net profit as shown on the SA302 or tax calculation. For limited company directors, lenders typically use salary plus dividends — the same income the director draws personally. Some lenders will also consider retained profit within the company for higher earners, though this is less common and requires a specialist approach. For umbrella company workers, lenders generally use contract day rate or PAYE payslip income. Each business structure has different evidence requirements.
My profit has fluctuated year to year. How do lenders treat this?
Most lenders average the last two years' income. If year two is lower than year one, some lenders will use the lower figure rather than the average. If income has genuinely recovered and year two is higher, the average can work in your favour. Where there is a clear, explainable reason for a dip — a parental leave period, a one-off business cost, a pandemic year — this can sometimes be presented to lenders who use manual underwriting rather than automated scoring. Documentation of the reason matters.
Can I get a mortgage as a contractor?
Yes — but the treatment varies significantly by lender. Day-rate contractors are assessed by some lenders using gross contract day rate multiplied by a working-days-per-year assumption (typically 46–48 weeks), which often produces a higher income figure than SA302 income. This approach requires: a contract in place at the time of application, typically at least 12 months of contracting history and a contract with at least several months remaining. Umbrella company workers and those on fixed-term contracts through an agency are assessed differently — speak to an adviser about the specific treatment for your contract structure.
I have recently gone self-employed. Can I get a mortgage?
Most lenders require a minimum of two years' self-employment history before they will lend. However, if you moved from PAYE to self-employment in the same profession — for example, from employed accountant to self-employed accountant — some specialist lenders will consider applications with one year of accounts, particularly if the prior PAYE income was at a similar level. New businesses in their first year are generally not acceptable to any lender.

International Buyers & Expats

Can I buy UK property while living abroad?
Yes. Non-resident buyers — those living outside the UK — can purchase UK residential or buy-to-let property, and a mortgage market exists for this type of transaction. However, it is a specialist area: mainstream UK lenders do not generally lend to non-residents, so the product range is narrower and the terms are typically more conservative (lower LTVs, more documentation). The specific conditions depend on where you live, your income currency and the type of purchase.
I live in the UAE. Can I get a mortgage to buy UK property?
Yes. The UAE is one of the most established markets for UK property finance from overseas, and a number of specialist lenders regularly lend to UAE-resident buyers. Typically: a 30–40% deposit is required (60–70% LTV), income must be evidenced through UAE payslips and employment contracts, and AED income is subject to a currency haircut when calculating affordability. UK credit history is not required, though lenders will conduct their own due diligence on the applicant profile. The source of the deposit must be clearly documented.
I earn in a foreign currency. How do lenders calculate my affordability?
Lenders apply a currency haircut — typically in the range of 5–20% depending on the currency — to account for exchange-rate risk when converting foreign income to sterling for affordability purposes. The haircut varies by currency and lender: major currencies such as USD, EUR and CHF attract smaller haircuts than less liquid currencies. Bonus and variable income components are often treated more conservatively than base salary. The evidence required depends on the currency, income type and the lender's specific documentation requirements.
I am a British expat returning to the UK. Can I get a mortgage?
Yes — but the key challenge is usually the gap in your UK credit history during the time spent abroad. Lenders generally require some UK credit activity; a gap of several years can make the credit file look thin or inactive. Some specialist lenders assess returning expats contextually, particularly where there is a confirmed employer, an offer letter or proof of imminent return. A UK bank account in active use and some registered UK addresses help establish credit history quickly on return.
What documentation do international buyers need to provide?
The documentation requirements for international buyers are more extensive than for UK-resident applicants. Typically required: passport and visa or residency documentation, three to six months of bank statements in the country of residence, evidence of income (payslips, employment contract, tax documentation translated if not in English), source-of-funds evidence for the deposit, and proof of address in the country of residence. Where income is paid by an international employer, the employer's verification letter is also required. Anti-money laundering (AML) checks are more thorough for international transactions.

Buy-to-Let

What is the minimum deposit for a buy-to-let mortgage?
Most buy-to-let lenders require a minimum deposit of 25% (75% LTV), though some specialist products are available at 20%. First-time buyers looking to purchase a buy-to-let property face additional restrictions: a small number of lenders will accept first-time buyers on buy-to-let, but most require you to own your residential home first. The maximum LTV you can access also depends on your rental income relative to the mortgage payment.
How is buy-to-let affordability assessed?
Buy-to-let affordability is primarily assessed on rental income rather than your personal income. Lenders require the projected rental income to cover the mortgage payment by a certain margin — the rental coverage ratio — which is typically 125–145% of the interest payment at a stressed interest rate (often 5–6%, regardless of the actual rate). This means the rent needs to be meaningfully higher than the mortgage payment to pass affordability. Your personal income may also be assessed, particularly for smaller portfolio landlords.
Should I hold my buy-to-let property in a limited company?
This is primarily a tax question rather than a mortgage one, and the right answer depends on your individual circumstances, tax position and investment intentions. Since Section 24 removed the ability for individual landlords to deduct mortgage interest costs from rental income for income tax purposes, limited company ownership has become more tax-efficient for many landlords — particularly higher-rate taxpayers with multiple properties. However, limited company buy-to-let mortgages have their own rate market and terms. We advise on the mortgage; for tax advice, speak to an accountant who specialises in property.
Can I let a property on a residential mortgage?
No — not without the lender's explicit consent. A residential mortgage is taken out on the basis that the property is your home. Letting it without consent is a breach of the mortgage conditions and can lead to the lender demanding immediate repayment. If you want to let a property temporarily — for example, while working away — you can request consent to let from your lender, which they may grant for a limited period. For a permanent letting arrangement, you need a buy-to-let mortgage.
What is an HMO mortgage?
An HMO (House in Multiple Occupation) mortgage is a specialist buy-to-let product for properties rented to multiple unrelated tenants sharing facilities. HMOs are subject to their own licensing requirements (mandatory licensing applies to properties with five or more tenants forming two or more households in England) and their mortgage market is a subset of the buy-to-let market. Not all buy-to-let lenders lend on HMOs; those that do often apply their own size and licensing requirements. Rental income assessment also differs.

Adverse Credit

What counts as adverse credit?
Adverse credit is any negative information on your credit file. This includes: missed or late payments on credit cards, loans or utilities; defaults; county court judgements (CCJs); debt management plans (DMPs); individual voluntary arrangements (IVAs); and bankruptcy. The severity of the impact on your mortgage options depends on the type of adverse event, how recent it is, whether it has been satisfied or is still outstanding, and the overall value involved.
Can I get a mortgage after a default?
Yes. Specialist lenders exist specifically for applicants with defaults on their record. The key factors are: when the default was registered, whether it has been satisfied, the value of the default and whether it is with a communications, utilities or financial provider (the latter is typically viewed more seriously). Defaults registered more than three years ago are generally considered more acceptable than recent ones. A larger deposit often broadens the available options.
How long after a bankruptcy can I get a mortgage?
Following discharge from bankruptcy — which typically occurs one year after the bankruptcy order — some specialist lenders will consider mortgage applications. The number of options increases significantly after three years from discharge, and more still after six years (when the bankruptcy is removed from your credit file). The deposit requirement is higher immediately after discharge, reducing as the discharge date recedes. Criteria vary significantly between lenders.
I have an IVA — can I get a mortgage?
It depends on the status of the IVA. An active IVA makes it very difficult to obtain a mortgage — lenders generally require the IVA to have been satisfied before they will lend. Once satisfied, some specialist lenders will consider applications, though the credit file will retain the IVA record for six years from the date of registration. As with other adverse credit situations, a larger deposit and clean payment history since the IVA are positive factors.

Sport & Professional Athletes

Why is it difficult for professional athletes to get a mortgage?
The income structure and career patterns of professional athletes fall outside the templates used by mainstream lenders. Fixed-term contracts (often one to three years), variable income components such as appearance fees, win bonuses and image rights, a career horizon that typically ends before retirement age — and in some cases very high income across a short period — are all characteristics that standard automated mortgage assessment is not designed to handle. The result is that many athletes with strong financials receive unexplained declines from high-street lenders. Specialist lenders who work regularly with this cohort have built their criteria around these income patterns.
How do lenders assess a footballer's income?
The approach varies by lender. The most favourable specialist approach uses the gross annual salary as stated in the playing contract, including any contracted bonuses. Image rights income — typically paid through a personal service company (PSC) — is assessed separately and requires the PSC accounts and evidence that the contracts are in the player's name. Signing-on fees are generally not included for affordability. The remaining term on the playing contract is a key factor; lenders will want evidence of the current contract and sometimes of any imminent renewal.
Can I get a large mortgage on a one or two year football contract?
Yes — some specialist lenders will lend significant sums against a current playing contract, even where that contract has only one to two years remaining. The logic is that an established professional with a track record of contract renewals and consistently high earnings has a demonstrably different risk profile from a standard short-term employee. Manual underwriting, which assesses the full picture rather than running automated eligibility scoring, is almost always required for these cases.
What about image rights — can that income be included?
Image rights income can be considered by specialist lenders, but it is assessed differently from base salary. Because image rights are typically paid through a PSC or partnership structure, lenders who consider it will require: the image rights contract, evidence that the contracts are with the player personally, the PSC accounts and a clear demonstration that the income is contractually guaranteed or at least historically consistent. Not all lenders who work with athletes include image rights; those that do may apply a haircut to the figure.
I play rugby — is my situation different from a footballer?
The fundamental challenges are similar — fixed-term contracts, bonus income, a career ceiling — but there are rugby-specific factors. Central contracts (for international players) alongside club contracts add income complexity. Benefit year payments are a common feature for senior players and require their own treatment. International tours and overseas stints can interrupt UK payroll records. We have experience with professional rugby players across club rugby, Premiership and international structures.

The Application Process

What is an Agreement in Principle (AIP)?
An Agreement in Principle — also called a Decision in Principle (DIP) or Mortgage in Principle — is a conditional indication from a lender that they would be willing to lend a specified amount, subject to full application and valuation. It is typically obtained before making an offer on a property, as many estate agents and vendors require evidence of it before accepting an offer. An AIP involves a credit search (either a soft search, which does not leave a footprint, or a hard search, which does — clarify which before proceeding).
How long does a mortgage application take?
The timeline varies significantly by lender and case complexity. A straightforward residential case with a mainstream lender might complete in two to four weeks from application to mortgage offer; a specialist or complex case — involving overseas income, manual underwriting, unusual employment or adverse credit — can take six to ten weeks or longer. Property valuation turnaround and solicitor progress are separate variables that affect the overall purchase timeline. We manage the lender relationship throughout the process and flag delays early.
What documents do I need for a mortgage application?
Standard documentation includes: passport or national ID, proof of current address (utility bill or bank statement dated within three months), three months' payslips and most recent P60 (for employed applicants), two to three years' SA302 or tax calculations and tax year overviews (for self-employed applicants), three to six months' bank statements and proof of deposit source. Additional documentation is required for foreign national, international and specialist cases — your adviser will provide a specific list based on your circumstances.
What is a mortgage valuation and do I need a full survey?
Every mortgage requires at minimum a basic valuation, which the lender commissions to confirm the property is worth what you are paying and is suitable security for the loan. This is not a survey — it does not inspect the condition of the property in detail and is carried out for the lender's benefit, not yours. You should commission a separate survey if you want an independent assessment of the property's condition. The level of survey (homebuyer report or full structural survey) depends on the property type and age.
Should I use a broker or go directly to a lender?
For straightforward cases with strong credit, stable employment and a standard deposit, going directly to a lender whose product you have found independently is entirely reasonable. For any case with complexity — self-employment, a visa, overseas income, adverse credit, a short-term contract, professional sport — a whole-of-market broker provides access to a wider lender panel, knowledge of which lenders' criteria fit your situation, and the ability to make a single well-placed application rather than several that leave a credit footprint.

Fees and Costs

What fees are involved in buying a property?
The main costs to budget for are: Stamp Duty Land Tax (SDLT) on purchases in England — the rate depends on the purchase price, buyer type and whether this is your first or subsequent property; solicitor or conveyancing fees (typically £1,500–3,000 plus disbursements); survey costs (£300–600 for a homebuyer report, more for a full structural survey); mortgage arrangement fees charged by the lender (some products have no fee; others carry fees of £500–2,000, sometimes added to the loan); and adviser broker fees. Moving costs, buildings insurance and any renovation costs are additional.
What is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax is a tax on property purchases in England charged at tiered rates above various threshold values. The rates differ depending on whether you are a first-time buyer, a home mover or purchasing an additional property. First-time buyers benefit from relief on properties up to £500,000. Purchasers of additional residential properties — including buy-to-let — pay a surcharge of 5 percentage points above the standard rates (as at current rates). Non-UK residents purchasing residential property in England also pay an additional 2% surcharge. Use our SDLT calculator for an exact figure based on your purchase price and buyer type.
Can I add the mortgage arrangement fee to my loan?
Yes — most lenders allow you to add their arrangement fee to the mortgage rather than paying it upfront. However, this means you pay interest on the fee amount for the life of the mortgage, which increases the total cost. Whether it is better to pay the fee upfront or add it to the loan depends on the fee size, your mortgage rate and how long you plan to stay in the property. Your adviser can compare both options on a total-cost basis.
What is an early repayment charge (ERC)?
An early repayment charge is a penalty for repaying your mortgage or switching product before the end of your current deal term. ERCs are common on fixed-rate mortgages during the fixed period — typically 1–5% of the outstanding balance in the early years, tapering toward the end of the deal. You can usually still make overpayments of up to 10% of the outstanding balance per year without triggering the ERC. Understanding your ERC position matters particularly if you plan to move or remortgage before the deal ends.

Still have a question?

These answers cover general principles. Your specific situation — visa type, income structure, credit history, purchase type — changes what is available and on what terms. Speak to an adviser for advice tailored to you.

Create My Mortgage PassportSpeak to an Adviser

Related guides

Lockhart Murphy is a trading style of Mortgage Force (UK) Ltd who is authorised and regulated by the Financial Conduct Authority. FCA Number: 843041. Registered in England and Wales, Companies House No: 09394027.