
Personal Mortgages
Buy, remortgage or release equity from your home with a personal mortgage

Personal Mortgages
Buy, remortgage or release equity from your home with a personal mortgage
Find a mortgage that's right for you
Getting a mortgage can seem confusing. There are lots of different things to consider and different types of mortgages to compare. This is why we recommend having a Personal Mortgage Advisor in your corner helping you at every stage of the journey.



How does a personal mortgage work?
A personal mortgage is a loan you take out to buy a property or land, and it can last anywhere between 2 to 40 years, depending on your lender and your circumstances.
You’ll need at least 5% of the property’s purchase price as a deposit. Then, you borrow the rest of the money (the mortgage) from a lender, like a bank or a building society.
The lender will charge interest on the money you borrow, which you’ll pay back in monthly installments. These payments go towards clearing your total loan amount.
Your mortgage is ‘secured’ against the value of your home until it’s fully paid off. That means if you can’t keep up with your payments, the lender can repossess your home and sell it to get their money back.
A Personal mortgage for every situation
1
First Home​
First time buying a home? It's a big deal but we're here to guide you through.
2
Remortgage
Coming to the end of your current deal? Let's review your options.
3
Moving Home
On the move? Let's understand what you need, your costs, deposit and more.
4
Buy To Let
Planning to rent your property out? Get an advisor in your corner to find you the right solution.
How much can I borrow on a mortgage?
Typically, you might be able to borrow somewhere between 4.5 and 5.5 times your salary for a mortgage. However, this can vary depending on the lender, and you’ll also need to pass the affordability checks. Some lenders may offer higher salary multiples if you work in certain professions.
When you’re figuring out how much personal mortgage you can get, lenders usually look at a few key factors:
Income: This includes all the money you receive from wages, pensions, investments, bonuses, commission, rental income, benefits, or maintenance payments.
Outgoings: Lenders consider your essential expenses like food, energy bills, travel, and childcare. They might also look at your spending on clothes, holidays, and leisure activities.
Debts: Payments you make on existing credit agreements, such as credit cards, overdrafts, or loans, will be taken into account.
Deposit: Having a bigger deposit can often make it easier to get the mortgage you need.
Employment Status: Whether you’re employed full-time, part-time, self-employed, unemployed, or retired, your employment status plays a role.
Credit History: Your credit score gives lenders an idea of how good you are at managing your finances.
Future: Lenders will consider whether you can still afford your mortgage in various scenarios, like losing your job, interest rate rises, or having children.
Understanding personal mortgage interest rates
A mortgage interest rate is the cost you pay to borrow money for a property, expressed as a percentage of the loan amount. Think of it as the ‘cost’ of borrowing, plus any other applicable fees. It’s important to understand your monthly mortgage repayments and how changes in interest rates could affect them when looking at different mortgage deals.
To calculate what a mortgage might cost each month try using a mortgage calculator.
Factors that affect your interest rate include:
Amount Borrowed: The total loan amount you need.
Deposit Amount: The size of your deposit can impact the interest rate.
Type of Mortgage: Different mortgages come with different rates.
Lender Offers or Deals: Various lenders have unique offers and deals.
Types of mortgage interest rate
Fixed Rate
A fixed-rate personal mortgage offers a set interest rate for a specified period (known as the ‘term’), such as 2 or 5 years. This means your monthly repayments will stay exactly the same for that period. This is great for you if you want certainty and don’t like the risk of rates changing.
Variable Rate
A variable interest rate means that the rate isn’t fixed and can rise and fall with the Bank of England’s base rate. If you think rates will fall and you want the potential to benefit from this then this could be the rate for you. However, rates can go up so you will need to be sure you could still afford the higher repayments.