Buying or remortgaging a home can feel overwhelming — especially with all the jargon, rates, and rules to navigate that are ever changing. At Green & Green Mortgage and protection, we’ve rounded up the 20 most common mortgage questions UK buyers ask in 2026 and answered them in plain English.
Whether you’re a first-time buyer in Hull, moving home, or investing in a buy-to-let, this guide will help you make confident, informed decisions.
Will mortgage rates go down in 2026?
Mortgage rates are linked closely to the Bank of England base rate. While predictions vary, many analysts expect gradual reductions in 2026 as inflation cools. Even small changes can make a big difference, so it’s worth speaking to a mortgage adviser early to secure the best deal. The economists predict the Bank of England base rate will fall to 3% by the end of the year.
How much can I borrow?
Most lenders use an income multiple (usually 4 to 4.5x your annual income) to determine how much you can borrow. They’ll also assess your affordability based on regular spending, debts, and dependents. The more you earn, the more lenders will lend you. For example if you earn over £75,000 per year some lenders will increase your borrowing to 4.75x your income.
Tip: Chat to an adviser for an accurate figure.
How much deposit do I need?
For most mortgage lenders, you’ll need at least 5% of the purchase price. However, to access better rates, aim for 10–20%. If you’re a first-time buyer, there are government schemes like Lifetime ISA or Deposit Unlock to help. The larger your deposit, the better the interest rate you will qualify for.
What’s the difference between fixed and variable rates?
A fixed-rate mortgage keeps your payments the same for a set period. Typically, 2,3 or 5 years. This gives you stability on your monthly repayments. A variable rate can change depending on the lender or the Bank of England’s rate or if the lender alters their variable rate. If rates go down, yours will go down with it. If rates go up, yours will go up with it.
Fixed = predictable payments.
Variable = flexibility but more risk.
What help is available from the government?
Current government home-buying schemes include:
• Lifetime ISA – 25% bonus on your savings to help boost your deposit
• Shared Ownership – buy part of a home and rent the rest.
• First Homes Scheme – discount for key workers and first-time buyers.
What’s the difference between repayment and interest-only mortgages?
There are 2 main mortgage types, repayment and interest only.
• Repayment mortgage: You pay both the loan and interest each month — the balance reduces over time. Your monthly repayment is a mixture of the loan you have borrowed, and the interest added. With each payment you make you are paying back what you have borrowed.
• Interest-only mortgage: You only pay the interest, meaning you’ll still owe the full amount at the end of the term. At the end of the term you will need to find a way to repay the loan.
How long should I fix my mortgage for?
This is the $6 million question. Common fixed rate periods are 2, 3, or 5 years. The length of time that you fix your rate for will depend on your outlook for future interest rates, your appetite to risk and your plans for the property you are buying.
Can I get a mortgage if I’m self-employed?
Yes — Getting a mortgage when self employed is the same process as if you were employed, but you’ll need to show at least two years of accounts or SA302 tax returns as opposed to 3 payslips. Lenders look at your average income (and some use net profit for limited company directors).
What mortgage fees should I expect?
Some adviser specialist in a particular area of mortgages such as helping self employed clients or first-time buyers. You want to ask if they have a niche they specialise in and if you fit that niche. If they have little experience in your case type they may not be the best adviser to help you.
Do you offer personal insurance advice?
Typical costs when arranging a mortgage may include:
• Arrangement fee: £0–£1,000+ - this varies from lender to lender and which product is most cost effective overall
• Valuation fee: £100–£500 – Again not all lenders charge a valuation fee, many are free but the ones that do charge can vary from £100 to £500 depending on the property and case type
• Solicitor fees: £800–£1,500 – The complexity of your case and which solicitor you use will alter your cost.
• Broker fee: £0–£500 depending on service
Always ask for a full breakdown before applying.
How does my credit score affect my mortgage?
Your credit score impacts your eligibility with lenders and therefore the rates you’re offered. A higher score = lower risk = better deals. Based on you credit score you either qualify with a particular lender or you don’t. Your score doesn’t impact what they lender will offer you, only whether they lend to you or not.
What documents will I need for a mortgage application?
When submitting a mortgage application most lenders will ask for following supporting evidence:
• Proof of ID (passport or driving licence)
• Proof of address
• Proof of income - Last 3 months’ payslips for employed applicants / Last 2 years tax calculations and overviews for self-employed applicants.
• Bank statements – to evidence spending
Can I make overpayments on my mortgage?
Yes — many mortgages allow 10% overpayment per year without penalties. That is 10% of your remaining balance in a 12-month period. For example, if you have £100,000 remaining on your mortgage you can overpay by £10,000 on top of your normal monthly payments before you are penalised. Even small overpayments can save thousands in interest and cut years off your term.v
What does remortgaging mean?
Remortgaging means switching your mortgage to a new deal — either with your current lender or a new one. You can often save money, release equity, or reduce your term. The process involves finding a mortgage deal to replace your current mortgage when that comes to an end. This can either be like for like (keeping your remaining loan and term the same) or altering your terms.
How do I know what I can afford?
Use a mortgage affordability calculator to estimate your budget, but also factor in council tax, utilities, insurance, and maintenance. A mortgage adviser can give you a more personalised assessment by assessing your income against more than one lender at a time to find you the best fit for you and save you time in the process,
What is loan-to-value (LTV)?
LTV is the percentage of the property’s value you’re borrowing. It is essential the size of the mortgage compared to the value of the house. The lower your loan to value the better interest rates you will qualify for.
Example: £180,000 mortgage on a £200,000 home = 90% LTV.
Lower LTV = lower risk = better interest rates.
Are there special mortgages for first-time buyers?
Yes — many lenders offer first-time buyer mortgages with lower deposits, preferential interest rates or cashback. There are also government-backed options like Shared Ownership or First Homes schemes.
What happens if interest rates rise?
If you’re on a variable or tracker mortgage, your interest rate will increase and therefore your payments will go up. A fixed rate protects you until the end of your deal. If you have a fixed rate mortgage your interest rate will not go up or down – fixing your payments.
What happens if I miss a mortgage payment?
Missed payments can impact your credit score and future borrowing. Missing a payment on your mortgage has more significance on future lending than missing a payment on any other form of credit. If you’re struggling, contact your lender immediately — they may offer a temporary payment plan which can avoid a missed payment being registered on your credit file.
Can I transfer my mortgage when moving house?
Yes — most mortgages are portable, meaning you can transfer them to your new home (subject to lender approval). Always check before selling or buying. Porting you r mortgage to a new property can often be the most cost-effective option as it avoids incurring any early repayment charges.
How does shared ownership work?
You buy a share of a property (usually 25–75%) and pay rent on the rest. Over time, you can buy more shares — known as staircasing — until you own 100%. For example, You buy 25% of a £200,000 house. You will need a deposit of say £5,000 and get a mortgage for the remaining £45,000. You will then pay rent on the £150,000 (75% of the property) you do not own at the market rate set by the housing association.
Mortgages can feel complex, but the right guidance makes all the difference. Whether you’re a first-time buyer, moving home, or remortgaging, we’ll help you find the best deal and understand every step of the process.
Speak to Green & Green Mortgage and protection today — local, independent, and always on your side.
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