UK Mortgage Guide 2026: How to Get Approved and Find the Best Rate
By Wealthvieu
·
Updated
UK mortgages let you borrow 4-4.5x your income with deposits from 5%. Here’s how to find the best deal and get approved.
How Much Can You Borrow?
Income Multiple
| Deposit |
Typical Multiple |
| 5% |
4x income |
| 10% |
4.25x income |
| 15% |
4.5x income |
| 20%+ |
Up to 5x income |
Borrowing Examples
| Salary |
4x Multiple |
4.5x Multiple |
| £30,000 |
£120,000 |
£135,000 |
| £40,000 |
£160,000 |
£180,000 |
| £50,000 |
£200,000 |
£225,000 |
| £60,000 |
£240,000 |
£270,000 |
| £80,000 |
£320,000 |
£360,000 |
Joint income counts if buying together.
Affordability Checks
Lenders also check:
- Monthly outgoings
- Credit commitments
- Childcare costs
- Essential spending
- Stress test at higher rates
Deposit Requirements
Loan-to-Value (LTV) vs Rate
| LTV |
Deposit |
Rate Impact |
| 95% |
5% |
Highest rates |
| 90% |
10% |
Better rates |
| 85% |
15% |
Good rates |
| 80% |
20% |
Much better |
| 75% |
25% |
Best rates |
| 60% |
40% |
Premium rates |
Deposit Examples
| Property Price |
5% |
10% |
20% |
| £200,000 |
£10,000 |
£20,000 |
£40,000 |
| £300,000 |
£15,000 |
£30,000 |
£60,000 |
| £400,000 |
£20,000 |
£40,000 |
£80,000 |
| £500,000 |
£25,000 |
£50,000 |
£100,000 |
Mortgage Types
Fixed Rate
| Term |
Feature |
| 2-year fixed |
Lower rates, flexibility |
| 5-year fixed |
Stability, slightly higher |
| 10-year fixed |
Long-term security |
Rate is locked for the fixed period.
Variable Rate
| Type |
How It Works |
| Standard Variable Rate (SVR) |
Lender can change anytime |
| Tracker |
Follows Bank of England rate |
| Discount |
% off SVR for set period |
Interest-Only vs Repayment
| Type |
Monthly Payment |
End Result |
| Repayment |
Higher |
Own home outright |
| Interest-only |
Lower |
Still owe full amount |
Interest-only requires a repayment plan.
Current Mortgage Rates (2026)
| LTV |
2-Year Fixed |
5-Year Fixed |
| 60% |
~4.00% |
~4.10% |
| 75% |
~4.20% |
~4.30% |
| 85% |
~4.50% |
~4.60% |
| 90% |
~4.80% |
~4.90% |
| 95% |
~5.20% |
~5.30% |
Rates change frequently — check current deals.
Monthly Payment Examples
£250,000 mortgage, 25-year term:
| Rate |
Monthly Payment |
| 4.0% |
£1,319 |
| 4.5% |
£1,390 |
| 5.0% |
£1,461 |
| 5.5% |
£1,535 |
| 6.0% |
£1,610 |
Mortgage Fees
| Fee |
Typical Amount |
| Arrangement fee |
£0-£2,000 |
| Booking fee |
£0-£250 |
| Valuation fee |
£0-£500 |
| Legal fees |
£1,000-£1,500 |
| Stamp duty |
Varies |
Some mortgages have “fee-free” but higher rates.
Getting Approved
What Lenders Check
| Factor |
What They Look At |
| Income |
Salary, bonus, overtime |
| Employment |
Stability, contract type |
| Credit history |
Missed payments, defaults |
| Existing debt |
Loans, credit cards |
| Spending |
Bank statements (3-6 months) |
| Deposit source |
Must be legitimate |
Improve Approval Chances
| Action |
Impact |
| Check credit report |
Fix errors |
| Pay down debt |
Lower commitments |
| Stay in job |
Employment stability |
| Save regularly |
Shows financial discipline |
| Reduce discretionary spending |
Before bank statement period |
First-Time Buyer Options
Lifetime ISA
| Feature |
Details |
| Save up to |
£4,000/year |
| Government bonus |
25% (£1,000/year) |
| Property limit |
£450,000 |
| Must be first home |
Yes |
Shared Ownership
| Feature |
Details |
| Buy |
25-75% of property |
| Pay rent on rest |
To housing association |
| Can ‘staircase’ |
Buy more over time |
| Who qualifies |
Income <£80K (£90K London) |
Help to Buy (Legacy)
Most schemes closed, but equity loan help may still apply if bought before closure.
Mortgage Process Timeline
| Stage |
Timeframe |
| Agreement in Principle |
1-2 days |
| Property search |
Varies |
| Offer accepted |
— |
| Full application |
1-2 weeks |
| Valuation |
1-2 weeks |
| Legal work |
4-8 weeks |
| Exchange |
— |
| Completion |
1-4 weeks after exchange |
| Total |
3-6 months |
Remortgaging
When to Remortgage
| Trigger |
Action |
| Fixed rate ending |
Look 3-6 months before |
| SVR too high |
Switch to save |
| Significant equity gain |
Access better LTV |
| Need to borrow more |
Remortgage with extra |
Remortgage Costs
| Cost |
Amount |
| Early repayment charge |
1-5% of outstanding |
| New arrangement fee |
£0-£2,000 |
| Legal fees |
£200-£500 (often free) |
| Valuation |
Often free |
Overpaying Your Mortgage
| Overpayment |
Typical Allowance |
| Without penalty |
10% of balance/year |
| Impact |
Reduces term and interest |
Example: £250,000 mortgage at 4.5%, 25 years:
- Normal: £1,390/month, £166,900 interest
- £100 extra/month: Pay off 4 years early, save £29,000
Mortgage Brokers vs Direct
| Option |
Pros |
Cons |
| Broker |
Access to many lenders, advice |
May charge fee |
| Direct |
Exclusive deals |
Miss other options |
| Comparison sites |
Quick overview |
Not comprehensive |
Many borrowers use whole-of-market brokers.
Bottom Line
| Step |
Action |
| 1 |
Check credit score |
| 2 |
Save biggest deposit possible |
| 3 |
Get Agreement in Principle |
| 4 |
Research current rates |
| 5 |
Consider broker |
| 6 |
Compare total cost (rate + fees) |
Key tips:
- Bigger deposit = better rate
- Fix for stability in uncertain times
- 4-4.5x income is typical max
- Shop around — rates vary significantly
- Remortgage before falling to SVR
- Overpay if you can (up to 10% penalty-free)