Mortgage guide

A mortgage is a loan used to buy a home, secured against the property. You pay a deposit and the bank lends the remaining amount, which you repay in monthly instalments.

In England, the borrowing proportion is usually expressed as LTV (loan to value). For example, 75% LTV means a loan covering 75% of the purchase price and a 25% deposit.

Fixed-rate mortgage: the interest rate stays the same for a set period, keeping payments stable and making budgeting easier.

Tracker and variable-rate mortgages: interest changes with a benchmark or the lender's rate. Initial payments may be lower but could increase over time.

Early repayment charge: the lender may charge a fee if you repay or reduce the loan before the fixed period ends. Always ask about these terms before signing.

The monthly payment is determined by the loan amount, term and interest rate, and covers principal plus interest. Early payments are mostly interest; over time more goes towards the principal.

A longer term lowers the monthly payment but increases the total interest paid over the life of the loan. Use the calculator on this page to compare different terms and deposits.

When a fixed-rate period ends, the mortgage usually moves to the lender's standard variable rate and payments may rise.

It is worth planning a new deal or remortgage before the period ends. Our brokers remind you of the timing and compare suitable options.

For a home you will live in, deposits in England often range from 10% to 25% of the purchase price. Higher LTV borrowing may come with higher interest rates.

Some lenders may require a higher deposit (25%–40%) from buyers living in Turkey without UK income. Buy-to-let mortgages generally require a deposit starting at 25%.

The exact percentage depends on your nationality, income type and lender. Our brokers identify suitable lenders before an application.

Lenders often begin with an income multiple: around 4–4.5 times annual income is a commonly used upper limit. Joint buyers' incomes are considered together.

They then assess monthly expenses, credit cards, existing loans, credit history and living costs. Two people with the same income may therefore qualify for different amounts.

Some lenders accept documented income from Turkey, while others do not. Finding a suitable mortgage product is a key part of the process.

Buyers without a UK credit history are considered higher risk by some lenders; however, there are lenders and products focused on buyers living in Turkey.

These lenders can assess your Turkish income, assets and credit history with documentation. Identifying which lenders suit you is what our brokers do.

Purchase costs include Stamp Duty Land Tax (SDLT), solicitor and conveyancing fees, Land Registry fees, searches and, in some cases, a surcharge for non-resident buyers.

Mortgage-related costs include arrangement fees, valuation fees and, where needed, a property survey.

Rates and tax bands may change. Confirm exact amounts with your solicitor and our brokers before making an offer.

LTV: the loan as a share of the property value. Arrangement fee: the lender's fee for setting up the mortgage. Early repayment charge: a fee for repaying the loan before the fixed period ends.

Tie-in: a period that restricts switching early. Standard variable rate (SVR): the lender's standard variable rate applied when the fixed period ends.

Read the mortgage illustration / key facts document before signing; ask our brokers or your solicitor about any term you do not understand.

Mortgage offers are usually valid for 3–6 months; for new-build developments the period can be extended to match the completion date.

If the offer expires, the rate or terms may change. Check the validity period early for developments with distant completion dates.

Usually: passport, current proof of address, proof of income (payslips or accounts and tax returns if self-employed), bank statements and evidence of the source of your deposit.

Buyers applying from Turkey may also need translated documents, tax statements and declarations of assets. Preparing documents in advance can significantly shorten the process.

1) Agreement in Principle (AIP): an initial indication from a lender of how much you may be able to borrow, helping you clarify your budget.

2) Property selection and offer: you make an offer on your chosen home and appoint a solicitor if it is accepted.

3) Conveyancing: the solicitor arranges searches and prepares contracts while the formal mortgage offer is finalised.

4) Exchange and completion: contracts are exchanged, making the purchase binding. On completion day, the lender sends funds to the solicitor and ownership transfers to you.

Residential and buy-to-let mortgages follow different rules for deposits, interest rates, income assessment and tax.

A buy-to-let product is not suitable if you plan to live in the property, and a residential product is not suitable for a rental investment. Choosing the right product early saves time.

The borrower and the property owner usually have to be the same person; a mortgage cannot be granted for a minor.

If you are planning a purchase for your child, you can buy the property yourself or consider options such as joint ownership with our brokers and your solicitor. This requires individual legal assessment.