Introduction

Let’s face it mortgages can be intimidating. Whether you’re a first-time buyer or looking to move up the ladder, the financial jargon, paperwork, and endless product options can quickly make you feel overwhelmed. But here’s the truth: understanding mortgages is one of the most powerful tools you can have when buying a home.

With the right knowledge, a strong strategy, and a reliable estate agent like Keating Estates, you can approach your property purchase with clarity and confidence. This guide covers everything you need to know about mortgages in the UK—from choosing the right product to preparing for approval and managing repayments long-term.

What is a Mortgage and Why It Matters

A mortgage is a loan you take out to buy property or land. It’s secured against your home, meaning if you don’t keep up with repayments, the lender could repossess the property. In the UK, most people need a mortgage to purchase a home, especially in competitive areas like South London.

Understanding how mortgages work can save you thousands over the life of the loan. From interest rates to repayment terms, knowing what you’re signing up for is essential to making informed decisions.

Types of Mortgages Available in the UK

There’s no one-size-fits-all mortgage. The type you choose will depend on your financial situation, long-term goals, and risk tolerance.

Fixed-rate mortgages lock your interest rate for a set period, giving you predictable monthly payments. These are popular among first-time buyers who prefer stability.

Variable-rate mortgages change as the lender’s interest rate moves. This can work in your favour when rates drop but may cost more when they rise.

Tracker mortgages follow the Bank of England’s base rate plus a set percentage. They offer transparency, but your payments will fluctuate with the market.

Interest-only mortgages allow you to pay only the interest each month, with the balance due at the end of the term. These are typically used by buy-to-let investors.

Buy-to-let mortgages are designed for rental properties and usually require a larger deposit, often 25% or more.

How to Choose the Right Mortgage

Choosing a mortgage is about balancing risk, affordability, and your long-term plans. Key factors to consider include:

• How long you plan to live in the property

• Whether you want payment stability

• Your income and job security

• Your appetite for financial risk

This is where a mortgage broker or advisor can make a huge difference. They’ll help you compare products across the market—not just from one lender—and offer advice tailored to your situation. Keating Estates works closely with trusted mortgage experts to guide clients through this decision-making process.

What You Need to Qualify for a Mortgage

Getting a mortgage isn’t just about what you want—it’s also about what lenders require. Here are the main factors they consider:

Credit score: A good credit history shows that you’re reliable with money. Late payments, defaults, or CCJs can reduce your chances of approval or lead to higher interest rates.

Deposit size: Most lenders require a deposit of at least 5–10%, though a 15–25% deposit will get you better deals and lower monthly payments.

Income and employment: Lenders will review your income and employment history to ensure you can afford the repayments. Self-employed applicants may need to show two or more years of accounts.

Debt-to-income ratio: If you have significant existing debt, this could impact how much you can borrow.

The Mortgage Application Process

Applying for a mortgage can seem complicated, but it’s manageable if you know the steps. Here’s what to expect:

1. Decision in Principle (DIP) – A lender estimates how much they might lend you based on a soft credit check and basic info.

2. Full Application – After choosing a property, you submit a formal application with documents like payslips, bank statements, and ID.

3. Valuation – The lender assesses the property to make sure it’s worth the amount you're borrowing.

4. Offer – If all checks are passed, you receive a formal mortgage offer.

5. Exchange and Completion – Contracts are exchanged, and your solicitor coordinates the transfer of funds.

Mortgage Terms You Need to Know

APR (Annual Percentage Rate) is the total cost of the mortgage over a year, including interest and fees.

LTV (Loan-to-Value) is the ratio between the loan and the property’s value. A 75% LTV means you’re borrowing 75% of the property price.

Early Repayment Charges (ERCs) are fees you pay for repaying your mortgage before the term ends.

Repayment vs Interest-Only: With a repayment mortgage, you pay down both the loan and interest. With interest-only, you only pay the interest during the term and must repay the full loan later.

How Interest Rates Affect Your Mortgage

The Bank of England base rate has a significant influence on mortgage interest rates. When the base rate rises, so do most mortgage rates, especially for variable and tracker products.

If you’re on a fixed-rate mortgage, your payments stay the same until the term ends. But when it’s time to remortgage, you may face higher rates.

Staying informed about rate changes—and acting early to lock in a good deal—is a smart move. Keating Estates helps buyers anticipate market shifts and connect with brokers to find competitive mortgage rates.

First-Time Buyer Tips

Getting your first mortgage is a major milestone, but it can feel like a minefield. Here are a few tips:

• Save as much as possible for your deposit

• Improve your credit score before applying

• Use government schemes like Help to Buy or Shared Ownership

• Work with an agent and mortgage advisor from the start

Keating Estates offers tailored support for first-time buyers, helping them understand the entire buying process—including mortgages.

Location Feature: 23 Clapham Common South Side, Clapham, London SW4 7AB

Located at 23 Clapham Common South Side, Clapham, London SW4 7AB, Keating Estates’ Clapham office is perfectly positioned to support buyers in one of London’s most vibrant and sought-after neighbourhoods.

Clapham is known for its lively atmosphere, excellent transport links, and mix of period and modern homes. But it’s also a competitive market, where buyers need to be mortgage-ready to act fast. The team at Keating Estates works closely with local mortgage advisors to help clients navigate the financial side of buying, ensuring they secure the right product at the right time.

How Keating Estates Supports Buyers with Mortgages

While Keating Estates isn’t a lender, they play a crucial role in helping buyers understand their options and connect with the right mortgage professionals. Their deep local knowledge and close relationships with brokers mean you’ll always get honest advice that reflects the real market.

From helping you get a Decision in Principle to ensuring you're ready when your dream property appears, Keating’s team supports you every step of the way.

Remortgaging: When and Why to Consider It

Remortgaging means switching your mortgage to a new lender (or deal) without moving house. You might do this to:

• Get a better interest rate

• Release equity

• Consolidate debt

• Change your repayment type or term

Keating Estates often helps homeowners review their mortgage terms during sales or lettings consultations, making sure they’re getting the best deal for their current situation.

Mortgages for the Self-Employed

Self-employed? You can still get a mortgage—it just requires more paperwork. Lenders will usually ask for:

• 2+ years of SA302 tax calculations

• Business bank statements

• Proof of ongoing contracts or income

Mortgage advisors can guide you through the specific requirements, and Keating Estates can connect you with professionals experienced in helping freelancers and entrepreneurs buy property.

Improving Your Mortgage Approval Chances

If you’re worried about approval, there are steps you can take to improve your odds:

• Check and fix your credit report

• Pay down debts

• Avoid new credit applications

• Save a larger deposit

• Stay in your current job until after completion

Preparation is everything. Starting early, even before viewing properties, gives you time to optimise your financial position.

Final Steps Before Completion

Once you’ve accepted a mortgage offer, you're on the home stretch. Your solicitor will:

• Exchange contracts with the seller

• Schedule completion

• Request the mortgage funds from the lender

After completion, you’ll receive your keys and officially become a homeowner. It’s a great time to celebrate—and start planning your new space!

Conclusion

A mortgage is more than just a loan it’s the bridge to your next chapter. Whether you're buying your first flat in Clapham or remortgaging a rental in Brixton, understanding your options puts you in control.

With the right information, expert support, and a trustworthy estate agent like Keating Estates, you can move forward with confidence. Their team, including the one based at 23 Clapham Common South Side, is always ready to help you navigate the financial side of buying a home with ease.

FAQs

1. How much deposit do I need for a mortgage in London?

Most lenders require at least 5–10%, but putting down 15–25% can get you better rates.

2. Can Keating Estates help me find a mortgage advisor?

Yes, they work with trusted local brokers and can connect you with professionals who fit your needs.

3. What happens if I miss a mortgage payment?

Missing a payment can affect your credit and lead to late fees. Contact your lender immediately if you’re struggling.

4. Is it possible to switch mortgages after buying?

Yes, this is called remortgaging. You can usually do this after your fixed-rate term ends or earlier, though fees may apply.

5. Are mortgage rates expected to go up in 2025?

Most analysts predict gradual increases, but it depends on inflation and Bank of England decisions. A fixed-rate mortgage can help protect you from rises.