| Typical minimum deposit | 5–10% (more for larger loans) |
|---|---|
| Common LTV bands | 60%, 75%, 85%, 90%, 95% |
| Typical income multiple | Around 4–4.5x; some lenders go higher |
| Maximum term | Often up to 35–40 years |
| Repayment types | Capital repayment, interest-only, part and part |
| Regulation | FCA-regulated residential mortgage |
Who is this for?
- Home movers buying and selling at the same time
- Buyers moving up the ladder or into prime London property
- Couples or families combining incomes, including bonus or commission
- Buyers with an existing mortgage they may port to the new home
- Anyone short of time who wants the process managed for them
How does a residential purchase mortgage work?
You borrow a sum from a lender to buy your home, secured against the property. You repay it over an agreed term, usually 25 to 35 years, with interest. If you do not keep up repayments, the lender can repossess the property.
Most buyers choose an initial deal period, such as a two, five or ten-year fixed rate, or a tracker that follows the Bank of England base rate. When that deal ends, you usually move onto the lender's standard variable rate unless you remortgage or take a new product.
How much can I borrow for a house purchase?
Most lenders lend around 4 to 4.5 times household income, subject to an affordability assessment. Some lenders offer higher multiples to higher earners or certain professions. The real limit is what your income, outgoings and credit history show you can afford.
Lenders look at:
- Basic salary, and how much bonus, commission or overtime they will count
- Credit commitments such as car finance, loans and credit cards
- Childcare costs, school fees and other regular spending
- A stress test to check you could cope if rates rose
Our borrowing calculator gives a quick guide, and our guide on how much you can borrow explains it in more detail.
How much deposit do I need to buy a home?
Some lenders accept a 5% deposit, but the most competitive products usually start at 25–40% deposit. A bigger deposit lowers your loan-to-value (LTV), which can widen your lender choice and reduce your monthly cost.
Your deposit can come from savings, the equity in your current home, or a gift from family. Lenders will want evidence of where the money came from. Gifted deposits usually need a signed gift letter confirming the money is not a loan.
What other costs should I budget for?
Beyond the deposit, buyers usually pay stamp duty, legal fees, a survey and any lender arrangement fee. In England, stamp duty is charged in bands; buying an additional property attracts a surcharge, and non-UK residents pay a further 2%.
- Stamp Duty Land Tax (see our stamp duty guide and calculator)
- Conveyancing and search fees
- Valuation and survey fees
- Lender product fees and any broker fee
- Removals, furniture and buildings insurance from exchange
Which repayment type should I choose?
Most homebuyers choose capital repayment, where each payment reduces the loan so it is cleared by the end of the term. Interest-only keeps payments lower, but the full loan remains to be repaid at the end. Lenders only offer interest-only if you have a credible repayment plan.
Part and part combines the two, which some borrowers use when they expect bonuses or investments to repay a portion. A longer term lowers monthly payments but increases the total interest you pay. Try our repayment calculator to compare scenarios.
Can I move my existing mortgage to a new home?
Many mortgages are portable, meaning you can transfer your current rate to the new property. You still have to pass the lender's affordability checks again. If you need to borrow more, the extra amount is usually on a separate product at current rates.
Porting can avoid early repayment charges. It is not always the cheapest route, though. We compare porting against redeeming and taking a new mortgage, including any charges, before you decide.
Why use a broker for a purchase mortgage?
A broker compares lenders for you and manages the application, so you can focus on the move. As an independent, whole-of-market broker, OMB is not tied to any single lender. That matters if your income is complex, your timescale is tight or the property is unusual.
We obtain a mortgage in principle early, so you can make offers with confidence. We then chase valuations, lender queries and the offer, and keep your solicitor and estate agent updated. A broker fee may apply, and we may also receive commission from the lender. We explain both before you proceed.
Run the numbersLoan, LTV, monthly payment, stamp duty and cash needed for a new home.
Home purchase calculatorHow we arrange it
- Free 15-minute call to understand your plans
- Mortgage in principle and budget confirmed
- Lender comparison and recommendation
- Full application, valuation and offer
- Liaison with solicitors through to completion
Example cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£1.35m purchase in Kensington for a director paid mainly in dividends
£520,000 purchase in Bristol for a growing family with high nursery costs
£285,000 purchase in Manchester for a professional still in probation
From the blog7 things to sort out before you make an offer on a home
Read the articleFrequently asked questions
What is the difference between a mortgage in principle and a mortgage offer?
A mortgage in principle is a lender's early indication of how much it may lend, based on a quick check of your income and credit. It is not a commitment. A mortgage offer follows a full application, document checks and a property valuation. Only the formal offer allows your solicitor to exchange contracts.
How long does it take to get a mortgage offer?
It varies by lender and case. Straightforward applications with complete documents can move quickly, while complex income, unusual properties or valuation queries take longer. Having payslips, bank statements and ID ready from the start helps. We keep track of the application and chase the lender so you know where things stand.
Should I choose a fixed or tracker rate?
A fixed rate keeps payments the same for the deal period, which helps budgeting. A tracker moves with the Bank of England base rate, so payments can fall or rise. Some trackers have no early repayment charges. The right choice depends on your plans, budget and appetite for risk.
Can I buy a house before selling my current one?
Possibly. Some buyers can afford both mortgages for a period, or use a let-to-buy arrangement. Others use a short-term bridging loan to buy before selling. Bridging is expensive short-term borrowing and needs a clear exit, usually the sale of your current home. We will talk you through the options and the risks.
What documents do I need for a purchase mortgage?
Lenders usually ask for photo ID, proof of address, recent payslips, a P60, three months' bank statements and proof of deposit. Self-employed applicants need tax calculations or accounts. Our mortgage documents checklist lists everything, so you can prepare before applying.
Will checking my mortgage options affect my credit score?
An initial conversation with OMB does not involve a credit search. Many lenders use a soft search for a mortgage in principle, which other lenders cannot see. A full application involves a hard search, which is recorded. We aim to apply only once we are confident in the lender's criteria.
Can I get a mortgage on a leasehold flat?
Yes, most lenders lend on leasehold flats. They will check the remaining lease length, ground rent and service charges. Short leases, often below 80 to 85 years remaining, can limit lender choice. Very high or escalating ground rent can also cause problems. Your solicitor will review the lease in detail.
Do I need a 25% deposit to get a good mortgage rate?
Not necessarily. Lenders price products in LTV bands, and rates usually improve as your deposit grows. The biggest steps tend to be around 90%, 85%, 75% and 60% LTV. Even a small extra deposit that moves you into a lower band can make a difference.
Can I take a mortgage into retirement?
Many lenders will lend beyond your expected retirement age if you can show affordable income in retirement, such as pension income. Maximum age limits vary widely between lenders. If your term runs past retirement, we will look at lenders whose age policies fit your plans.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice: up to 1% of the loan, typically £500.