Monday Financial Group

Author: Monday Team

  • What happens when your fixed-rate mortgage ends?

    What happens when your fixed-rate mortgage ends?

    When your fixed-rate mortgage ends, your mortgage itself doesn’t end. The fixed interest rate expires. Unless you’ve arranged another deal, you’ll normally move onto your lender’s reversion rate, often its Standard Variable Rate (SVR). Because that rate may differ from your current rate, your monthly repayments could go up or down.

    You can usually stay on the reversion rate, take another deal with your existing lender, or remortgage to another lender.

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    What happens at the end of a fixed-rate mortgage?

    Your mortgage balance and remaining term continue. What changes is the interest rate.

    If you haven’t arranged a new deal, your lender will normally apply its contractual reversion rate. The FCA explains that this is often an SVR, but it can be another type of rate.

    When someone’s fixed deal is ending, we’d normally start by checking the exact deal-end date, outstanding balance, remaining term, current rate and the rate the mortgage is due to move onto.

    What is a Standard Variable Rate?

    SVR stands for Standard Variable Rate. It’s a variable interest rate set by the lender, which can change over time.

    It doesn’t necessarily move directly in line with the Bank of England base rate, and it isn’t automatically the most expensive mortgage available. Some lenders use another type of reversion rate instead.

    Will your mortgage payment go up when your fixed rate ends?

    It depends on your outstanding balance, remaining term, repayment type and the difference between your current and new interest rates.

    When we review an expiring deal, one of the first things we’d do is compare the current payment with the estimated payment at the rate the mortgage could move onto. This gives a more useful picture than comparing two interest-rate percentages alone.

    You can use our mortgage rate change calculator to estimate how a different rate could affect your monthly repayments.

    What can you do when your fixed mortgage deal ends?

    Stay on your lender’s reversion rate

    You can generally remain on the reversion rate. Your payment may change and, because the rate is variable, it could change again later. You can normally still review other deals afterwards.

    Take a new deal with your existing lender

    Taking another mortgage product from the same lender is usually called a product transfer.

    A straightforward product transfer can involve a simpler process and fewer checks in some circumstances. However, you’re limited to that lender’s available products, and changing the mortgage term, repayment type or borrowing amount can change the process.

    We wouldn’t assume staying with your current lender is automatically cheaper, but we wouldn’t rule it out either.

    Remortgage to another lender

    Remortgaging means replacing your existing mortgage with one from another lender.

    The new lender will generally assess the application against its current criteria, including affordability, income, credit history, the property and loan-to-value.

    You can explore our remortgage options, or use our remortgage calculator when comparing potential repayments.

    Speak to your lender if you’re worried about the payments

    If your next payment looks unaffordable, contact your lender early. Simply speaking to your lender about payment concerns does not itself affect your credit file.

    OptionWhat it meansWhat to consider
    Reversion rate/SVRStay without arranging another productThe rate and your payments can change
    Product transferTake a new product from your current lenderPotentially simpler, but limited to that lender’s products
    RemortgageMove your mortgage to another lenderEligibility, affordability, fees and other costs need considering

    When should you start looking for your next mortgage deal?

    You don’t need to wait until your fixed rate has ended. It usually makes sense to start reviewing your position several months beforehand.

    Under the Mortgage Charter 2026, customers approaching the end of a fixed deal with participating lenders can have the opportunity to lock in a new deal up to six months ahead.

    However, six months is the maximum under the Charter, not a universal switching window. Lenders use different timeframes, commonly around three to four months in several major-lender cases. We’d check the rules for your existing mortgage rather than assume one timeframe applies to everyone.

    Can you switch before your fixed rate ends?

    Potentially, yes. The main issue is whether an early repayment charge applies.

    Depending on your mortgage terms, switching before the charge period ends can trigger a cost. Some lenders provide an early-repayment-charge-free switching window close to the end of a deal, but the rules vary.

    We’d normally check the early repayment charge first. A lower new rate doesn’t necessarily outweigh the cost of leaving the existing deal early.

    Product transfer or remortgage: what’s the difference?

    A product transfer means choosing another mortgage product from your existing lender. A remortgage means moving your mortgage to another lender.

    We’d usually compare both where appropriate rather than assume one route is better. Rates, fees, eligibility and overall mortgage costs all matter.

    What would we check when your fixed mortgage is ending?

    We wouldn’t look at the expiring rate in isolation. We’d normally check:

    • Your deal-end date, current rate and monthly payment
    • Your outstanding balance and remaining term
    • The reversion rate and any early repayment charge
    • Your estimated property value and loan-to-value
    • Changes to your income, employment, debts or credit history
    • Whether you want to borrow more, change the term or move home

    Something such as becoming self-employed, taking on new borrowing or planning to move could affect which options make sense.

    Can extending your mortgage term reduce your payments?

    Potentially. Repaying the mortgage over a longer period can reduce the amount due each month.

    However, a lower monthly payment doesn’t necessarily mean lower borrowing costs. Extending the term can mean paying interest for longer and increasing the total amount you repay.

    What happens if you do nothing?

    Your mortgage continues and normally moves onto its contractual reversion rate when the fixed period ends. Your payment may then be recalculated.

    You can generally still consider another product or lender afterwards, subject to your mortgage terms and eligibility.

    What if you’re worried about affording your next mortgage payment?

    Contact your lender early rather than waiting until payments have been missed.

    Support depends on your circumstances. For eligible customers of participating Mortgage Charter lenders, options can include temporarily moving to interest-only payments or extending the mortgage term.

    These options can reduce payments in the short term, but may increase the overall cost of the mortgage.

    How can a mortgage broker help when your fixed rate is ending?

    A mortgage broker can check your deal-end and early repayment charge position, estimate how your payment could change, compare your existing lender’s products with suitable alternatives elsewhere, and consider fees and overall costs.

    We’d also look at anything that has changed since the mortgage was arranged rather than treating the expiring interest rate as the only issue.

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    Frequently asked questions

    Does a fixed-rate mortgage automatically renew?

    No. The fixed rate expires. Unless another deal has been arranged, the mortgage normally continues on its contractual reversion rate.

    Do I have to remortgage when my fixed rate ends?

    No. You may be able to stay on the reversion rate, take another product with your current lender or remortgage elsewhere.

    How early can I arrange a new mortgage rate?

    It varies by lender. Participating Mortgage Charter lenders can allow eligible customers to secure a deal up to six months ahead, but individual switching windows differ.

    What happens if my new mortgage rate is higher?

    Your monthly payment may increase depending on your balance, remaining term and repayment type. Our mortgage rate change calculator can estimate how a different interest rate could affect your repayments.

    Can I stay on the Standard Variable Rate?

    Usually, subject to your mortgage terms. Because an SVR can change, it’s worth comparing its monthly and overall costs with your other options.

    Will I pay an early repayment charge when my fixed rate ends?

    The relevant early repayment charge period will often end at or around the fixed deal-end date, but check your mortgage offer for the exact dates and terms.

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  • Can you remortgage to pay off your Help to Buy loan?

    Can you remortgage to pay off your Help to Buy loan?

    If you bought your home through Help to Buy, you may be able to remortgage for enough to repay both your existing mortgage and the Help to Buy loan. Once the redemption process completes, the Help to Buy charge can be removed and you’re left with the new mortgage secured against your property.

    The important part is working out how much you actually need to borrow. Your Help to Buy repayment isn’t simply the original cash amount you received. It’s normally based on the percentage of your home’s current market value that you still owe.

    Below, we’ll explain how that amount is calculated, what a mortgage lender will assess, how the redemption process works and what could happen to your monthly and overall borrowing costs.

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    Can you remortgage to pay off a Help to Buy equity loan?

    Potentially, yes.

    Before the remortgage, you effectively have two forms of borrowing secured against the property:

    • Your existing first mortgage
    • Your Help to Buy equity loan

    If you repay Help to Buy in full through a remortgage, these are effectively replaced by one larger first-charge mortgage.

    The new mortgage normally needs to cover your existing mortgage balance and the amount required to redeem Help to Buy, plus any permitted fees you choose to add to the mortgage.

    Whether you can borrow enough will depend on factors including your income, affordability, credit history, property value, mortgage balance and resulting loan-to-value.

    When we look at a Help to Buy remortgage, we’d normally start with three figures: the outstanding mortgage, the Help to Buy percentage and a realistic estimate of the property’s current value.

    How much Help to Buy do you have to repay?

    This is where Help to Buy differs from a normal fixed loan.

    Homes England calculates your repayment using the equity-loan percentage you still owe and the property’s current market value, established through an appropriate RICS valuation.

    Your repayment is based on the current property value

    Suppose you originally bought a property for £250,000 and used a 20% Help to Buy equity loan:

    • Original property price: £250,000
    • Original Help to Buy equity loan: £50,000
    • Current property value: £300,000
    • 20% of the current value: £60,000

    Your Help to Buy redemption amount would be based on approximately £60,000 rather than the original £50,000, subject to the formal valuation and redemption calculation.

    We tend to see homeowners focus on the original amount they borrowed. In practice, it’s the percentage interest that matters.

    What if your home has increased in value?

    If its qualifying market value has increased, the amount needed to redeem the same percentage can also increase.

    Homes England doesn’t simply have a £50,000 debt in the example above. It has a 20% equity interest secured against the property.

    What if your home has fallen in value?

    The reverse can also apply. If the qualifying market value has fallen, the amount represented by the outstanding percentage may be lower.

    The actual figure should always be established through the official Help to Buy redemption process rather than relying on an estate-agent estimate.

    Why do people repay Help to Buy when they remortgage?

    Help to Buy: Equity Loan has closed to new applicants in England, but homeowners who used the scheme still have an equity loan to manage and repay.

    The fifth anniversary is often when people start reviewing their position because Help to Buy interest becomes payable from the beginning of year six.

    One particularly important point is that Help to Buy interest after five years does not reduce the equity loan itself. The interest is an ongoing charge for the borrowing.

    Some homeowners therefore consider repayment because they:

    • Have reached the interest-paying period
    • Are remortgaging at the end of a fixed deal anyway
    • Want to simplify their borrowing
    • Want Homes England’s percentage interest removed
    • Have built enough equity to consider refinancing
    • Now have sufficient income to support a larger mortgage

    We wouldn’t assume that reaching year five automatically means you should repay Help to Buy. We’d look at the overall numbers first.

    What happens to your monthly costs when you repay Help to Buy?

    Repaying the equity loan removes the Help to Buy interest charge and £1 monthly management fee.

    However, it also increases the amount you’re borrowing through your main mortgage.

    Your new mortgage payment could therefore be higher, similar or potentially lower depending on the amount borrowed, mortgage rate and term.

    For example, you can use our mortgage repayment calculator to see how increasing the mortgage balance could affect your monthly payment and total interest.

    The important thing is not to treat the Help to Buy payment disappearing as an automatic saving. You’re replacing one form of borrowing with another.

    Will remortgaging to repay Help to Buy cost more overall?

    It can.

    If you add £50,000 or £60,000 to your mortgage to redeem Help to Buy, you’ll start paying mortgage interest on that additional capital.

    Extending the mortgage term could make the monthly payment look more manageable, but may increase the amount of mortgage interest you pay over time.

    Keeping Help to Buy has its own costs. Interest continues under the scheme rules, the management fee remains payable, and Homes England retains its percentage interest in the property’s value.

    We’d normally compare more than the monthly payment. We’d want to understand the additional mortgage cost, the fees involved and what keeping the equity loan would mean instead.

    How does the Help to Buy remortgage process work?

    The exact mortgage process varies by lender, but the Help to Buy redemption itself has several important stages.

    1. Check your existing mortgage and Help to Buy position

    Start with your current mortgage balance, rate, deal-end date, any early repayment charge, your outstanding Help to Buy percentage and a rough property value.

    2. Check whether the larger mortgage looks affordable

    Before spending money on formal reports, we’d normally sense-check whether the borrowing required appears realistic.

    A lender will still need to carry out its own affordability and underwriting assessment. Increasing your mortgage to repay Help to Buy isn’t simply a like-for-like remortgage.

    3. Arrange the required RICS valuation

    Homes England requires a qualifying RICS valuation to establish the property’s current market value. The valuation must meet its specific requirements.

    Importantly, this is separate from the mortgage lender’s valuation. Homes England specifically states that it can’t accept a valuation produced for bank or mortgage purposes.

    4. Establish the Help to Buy redemption amount

    Homes England uses the qualifying valuation and your outstanding equity-loan percentage to calculate the amount required.

    5. Arrange the new mortgage

    You can then proceed with the mortgage required to replace your existing mortgage and repay Help to Buy, subject to lender criteria.

    Different lenders treat these cases differently, so this is one area where we’d check current policy rather than assuming any remortgage lender can accommodate the structure.

    6. Instruct a conveyancer

    You’ll need a conveyancer to deal with the legal work involved in redeeming Help to Buy.

    7. Complete the repayment application

    Homes England’s process requires information including your conveyancer’s details and a copy of your new mortgage offer. You also need to pay the applicable administration fee.

    8. Complete the remortgage and repay Help to Buy

    On completion, the new mortgage funds are used to redeem the existing mortgage and Help to Buy equity loan. Your conveyancer handles the relevant legal transfers and the Help to Buy charge can then be removed following full repayment.

    You should continue paying any Help to Buy interest and management fees until redemption has completed.

    Do you need a solicitor to remortgage and pay off Help to Buy?

    Yes, although “conveyancer” is the more accurate general term.

    Homes England requires you to instruct a conveyancer because repaying the equity loan involves legal work and the removal of a registered charge against your property.

    This makes the process more involved than simply switching from one mortgage product to another.

    What does it cost to remortgage and repay Help to Buy?

    As of September 2026, Homes England’s administration fee for repaying an equity loan is £200.

    You may also need to allow for:

    • The RICS valuation
    • Conveyancing costs
    • Mortgage product or arrangement fees
    • A mortgage valuation fee where applicable
    • A broker fee where applicable
    • Any early repayment charge on your existing mortgage

    The £200 Help to Buy fee is therefore only one part of the potential cost.

    What will a mortgage lender check?

    Repaying Help to Buy normally means asking the lender for a larger mortgage than your existing first-charge balance.

    We’d typically want to establish your:

    • Income and employment status
    • Monthly financial commitments
    • Credit history
    • Current mortgage balance
    • Help to Buy redemption amount
    • Property value
    • New mortgage loan-to-value
    • Required mortgage term
    • Age and retirement position where relevant

    Lender criteria also differ in how Help to Buy redemption is treated. Some lenders require the equity loan to be cleared completely, while others have different criteria for partial repayment or additional borrowing.

    That’s one reason specialist remortgage advice can be useful in these cases.

    What loan-to-value could you have after repaying Help to Buy?

    Your new LTV is calculated using the whole replacement mortgage, including the money used to redeem Help to Buy.

    For example:

    • Property value: £300,000
    • Existing mortgage: £180,000
    • Help to Buy repayment: £60,000
    • New mortgage required: £240,000
    • New LTV: 80%

    Although you might currently think of yourself as having a £180,000 mortgage, the new lender is assessing a £240,000 mortgage against a £300,000 property.

    You can use our loan-to-value calculator to calculate the resulting percentage.

    Can you partially repay Help to Buy instead?

    Potentially.

    Homes England currently permits part repayment, sometimes referred to as staircasing. A part payment must normally represent at least 10% of the property’s current market value, and you can’t leave less than 5% outstanding.

    However, lender appetite for partially repaying a Help to Buy equity loan varies. Some mortgage lenders will accept an equity loan remaining in place, while others require Help to Buy to be redeemed completely.

    Can you remortgage and keep the Help to Buy loan?

    Potentially, although your mortgage options may be more restricted.

    If you’re remortgaging while keeping Help to Buy, Homes England’s requirements still apply and your chosen mortgage lender must also be willing to lend while its charge remains in place.

    Keeping the equity loan isn’t the focus of this guide, but it can be an option worth checking before assuming full repayment is necessary. Our guide to remortgaging while keeping Help to Buy explains when that route may be possible.

    What if you can’t borrow enough to repay Help to Buy?

    Not being able to redeem Help to Buy through a remortgage doesn’t necessarily mean anything has gone wrong.

    The amount available could be restricted by affordability, income, credit history, LTV, your mortgage term or lender criteria. A higher property valuation can also increase the amount required to repay the equity loan.

    Depending on your circumstances, you might instead consider retaining Help to Buy for now, making a permitted partial repayment, combining the remortgage with personal savings or reviewing the position again later.

    Is repaying Help to Buy through a remortgage worth it?

    There isn’t a universal answer.

    We wouldn’t compare the Help to Buy interest rate with a mortgage rate in isolation because they’re different types of borrowing. The Help to Buy redemption amount is also linked to your property’s value.

    Instead, we’d look at questions such as:

    • How much would Homes England require today?
    • What Help to Buy interest are you paying?
    • How much larger would your mortgage become?
    • What would the new monthly payment be?
    • What would that borrowing cost over the relevant period?
    • Are there mortgage, valuation and legal fees?
    • Is an early repayment charge due?
    • How long are you likely to keep the property?

    Once you understand those figures, you can make a more meaningful comparison between retaining the equity loan and refinancing enough to repay it.

    What should you check before starting the Help to Buy redemption process?

    Before paying for a valuation, we’d usually want a reasonably clear picture of:

    1. Your outstanding mortgage
    2. Your mortgage deal-end date
    3. Any early repayment charge
    4. The Help to Buy percentage still outstanding
    5. Your current Help to Buy interest rate
    6. A realistic property value
    7. The approximate redemption amount
    8. Your income and affordability
    9. The likely new mortgage LTV
    10. The expected mortgage, legal and valuation costs

    Once those figures are clear, you can make a much more useful comparison between keeping the equity loan and refinancing enough to repay it.

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    If you’re considering a remortgage to repay Help to Buy, we can check how much you may need to borrow, what the resulting LTV could look like and which lenders currently accept this type of remortgage.

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    Frequently asked questions

    Can I remortgage to pay off my Help to Buy equity loan?

    Potentially. Your new mortgage would need to cover your existing mortgage and the Help to Buy redemption amount while remaining within the lender’s affordability, LTV and wider criteria.

    Do I repay the original Help to Buy loan amount?

    Not necessarily. Repayment is based on the percentage of your property’s current qualifying market value that remains outstanding, rather than simply the original cash amount borrowed.

    Do I need a RICS valuation to repay Help to Buy?

    Yes. Homes England requires a qualifying RICS valuation as part of the redemption process.

    What happens after I’ve paid off my Help to Buy equity loan?

    Once full redemption and the legal process are complete, the equity loan ends and the Help to Buy charge can be removed from the property. You’ll then be left with your replacement mortgage.

    Can I pay off half of my Help to Buy loan?

    Potentially, provided the repayment meets Homes England’s minimum percentage rules. Mortgage lender criteria will also need to accommodate the remaining equity loan.

    Does Help to Buy interest pay off the loan?

    No. Your interest payments and management fee don’t reduce the equity loan itself.

    Can I remortgage after five years of Help to Buy?

    Potentially, yes. Year five is significant because interest becomes payable from the beginning of year six, but whether you can remortgage enough to redeem Help to Buy will still depend on affordability, LTV and lender criteria.

    Do I need a solicitor to repay Help to Buy?

    You’ll need a conveyancer to carry out the legal work required by the Help to Buy repayment process. A solicitor who carries out conveyancing can fulfil this role.

    How long does it take to remortgage and repay Help to Buy?

    There isn’t one standard timeframe. The process involves obtaining the required valuation, arranging the mortgage, completing Homes England’s redemption documentation and carrying out the conveyancing work. The time required will depend on how quickly each stage progresses.

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  • What is remortgaging and how does it work?

    What is remortgaging and how does it work?

    A remortgage is when you replace the mortgage on your current home with a new mortgage from a different lender. You stay in the same property, but the new mortgage is used to repay the one you already have.

    People often consider remortgaging when a fixed or introductory deal is coming to an end, although there are other reasons to switch. You might want different mortgage features, your circumstances may have changed, or you may want to borrow more against your home.

    Remortgaging doesn’t automatically mean you’ll save money. The new rate, fees, mortgage term and any charges for leaving your existing deal can all affect whether switching makes financial sense.

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    So what is a remortgage?

    In a standard residential remortgage, you take out a new mortgage with another lender without moving home. The money from the new mortgage repays the outstanding balance with your existing lender, and you then make your mortgage payments to the new lender.

    This is different from a product transfer, where you stay with your current lender but move onto another of its mortgage products.

    When we look at a remortgage, we’d usually start with your existing mortgage balance, the deal you’re currently on, when that deal ends and an estimate of what your property is worth. These give us a useful starting point for understanding the options available.

    Why do people remortgage?

    One of the most common reasons to explore remortgaging is that an existing fixed or discounted mortgage deal is approaching its end. Rather than automatically moving onto the lender’s reversion rate, a homeowner may want to compare other options. Our guide to what happens when your fixed rate ends explains the next steps.

    There are other reasons too. You might consider remortgaging because:

    • Your current mortgage no longer suits your circumstances.
    • You want different features or greater flexibility.
    • You want to change the mortgage term.
    • You want to change the repayment structure, where appropriate.
    • You want to increase the amount you’re borrowing.
    • You want to see whether another mortgage could reduce your costs.

    That last point isn’t guaranteed. MoneyHelper’s guidance on remortgaging recommends considering the costs of switching rather than looking only at the headline interest rate.

    How does remortgaging work?

    The exact remortgage process can vary between lenders and applications, but it will usually involve the following steps:

    1. Review your current mortgage. Check the mortgage balance, current deal and deal-end date.
    2. Estimate your property’s value. This helps you work out your approximate loan-to-value ratio.
    3. Decide how much you need to borrow. You may simply replace the existing mortgage or apply to borrow more.
    4. Review your circumstances. Income, expenditure, debts and other commitments may affect affordability.
    5. Compare your options. This can include products available from your existing lender as well as mortgages from other lenders.
    6. Apply for the new mortgage. The new lender will assess the application against its criteria.
    7. The property is valued. The lender will normally need to establish whether the property provides suitable security for the mortgage.
    8. Underwriting takes place. The lender assesses the borrowers, property and proposed mortgage.
    9. Legal work is completed. This includes arranging for the existing mortgage to be redeemed.
    10. The new mortgage completes. The new lender repays the old mortgage and your new mortgage begins.

    What will lenders check when you remortgage?

    Changing lender will normally involve the new lender assessing both your financial circumstances and the property.

    Some of the main factors a lender may consider include:

    FactorWhy it can matter
    IncomeHelps determine affordability
    Existing debtsCan reduce available borrowing
    Property valueUsed to calculate LTV
    Credit historyCan affect lender and product availability
    Extra borrowingMay change affordability and lender criteria
    Mortgage termAffects repayments and overall borrowing cost

    A lender may also look at your employment, regular expenditure, age and retirement plans where relevant, and the type and condition of the property.

    If you’re self-employed, the lender will also need to assess the income it can use for affordability. Different lenders can approach this differently.

    We’d also want to understand what’s changed since you took out your existing mortgage. A higher income could improve affordability, for example, while new loans, childcare costs or changes to your credit history could affect the options available.

    If credit is a concern, our guide to the credit score for a mortgage explains what lenders may consider.

    How does LTV affect a remortgage?

    Loan-to-value, or LTV, compares the amount you owe with the value of your property.

    For example:

    • Estimated property value: £300,000
    • Mortgage remaining: £180,000
    • Approximate LTV: 60%

    As you repay your mortgage, your LTV may fall. An increase in your property’s value could also reduce your LTV, while a decrease in value could increase it.

    LTV can affect which lenders and mortgage products are available, although a lower LTV doesn’t guarantee a particular rate or mortgage.

    Is remortgaging always cheaper?

    No. A mortgage with a lower interest rate isn’t automatically cheaper overall.

    When comparing a remortgage, costs can include:

    • The new mortgage’s product or arrangement fee.
    • An early repayment charge on your existing mortgage.
    • Account closure or exit fees where applicable.
    • Valuation costs.
    • Legal or conveyancing costs.
    • Broker fees where applicable.
    • The length of the new mortgage term.

    Cashback or fee-assisted products can also change the comparison.

    In practice, we’d usually compare the overall cost rather than simply choosing the mortgage with the lowest headline rate. How much you owe and how long you expect to keep the new mortgage can make a significant difference.

    Our remortgage calculator can help you compare how different rates, fees and mortgage terms could affect the numbers.

    Can lower monthly payments mean paying more overall?

    Yes. A lower monthly payment doesn’t necessarily mean a cheaper mortgage overall.

    For example, extending the mortgage term could reduce the amount you repay each month, but interest would then be charged over a longer period. That can increase the total amount repaid over the life of the mortgage.

    Both government Mortgage Charter guidance and the FCA highlight the potential longer-term cost of extending a mortgage term.

    Can you borrow more when remortgaging?

    You may be able to apply for additional borrowing as part of a remortgage.

    Homeowners sometimes explore this for purposes such as home improvements, buying out another owner or other significant expenditure.

    If you’re looking to borrow more, we’d also ask what the additional money is for. That’s because lender criteria can differ depending on whether you’re simply replacing the existing mortgage or increasing your borrowing, and the purpose of the extra borrowing can also matter.

    Some people consider using additional mortgage borrowing to repay unsecured debts. Doing this converts unsecured borrowing into debt secured against your home and may mean repaying it over a longer period, potentially increasing the total amount you repay.

    What’s the difference between remortgaging and a product transfer?

    A remortgage normally means replacing your existing mortgage with one from a different lender.

    A product transfer means staying with your current lender but moving onto another of its mortgage products.

    A product transfer can sometimes involve fewer checks where the borrowing and other important details aren’t changing. A remortgage, meanwhile, allows you to consider suitable products from other lenders.

    Neither is automatically the better option. The useful comparison is the overall cost, suitability and relevant lender criteria rather than simply choosing whichever process looks easiest.

    When should you start looking at remortgaging?

    It can make sense to review your mortgage before your existing deal actually ends rather than leaving it until the final few weeks.

    Under the 2026 Mortgage Charter, participating lenders may allow eligible customers approaching the end of a fixed deal to lock in a new deal up to six months ahead. Your lender can tell you when its options become available.

    That doesn’t mean every borrower can arrange any remortgage six months in advance. Timings vary between lenders and applications, and an early repayment charge may still be relevant if you’re considering leaving your existing mortgage early.

    Our mortgage rate change calculator can help you estimate how your repayments could change at a different mortgage rate.

    What if your circumstances have changed?

    Your circumstances today may be very different from when you originally took out your mortgage.

    For example, you may now be self-employed, have changed jobs, taken on new borrowing, had children, experienced changes to your income or be approaching retirement.

    We wouldn’t assume that because you qualified for your current mortgage you’ll automatically qualify for the same borrowing with another lender. We’d look at your circumstances as they are now, because different lenders can also assess the same situation differently.

    If you’ve become self-employed since taking out your mortgage, our guide to getting a mortgage when self-employed explains some of the additional considerations.

    How can a mortgage broker help with remortgaging?

    A mortgage broker can review your existing mortgage, understand how much you still owe and consider your property’s value and approximate LTV.

    They can also look at your current income and commitments, check how additional borrowing could affect the options available, compare relevant lender criteria and consider fees alongside headline rates.

    A broker can then compare suitable options from the lenders they have access to and help with the application process.

    If you’re considering changing lender, our remortgage advice service explains how we can help you review your current mortgage and explore your options.

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    Frequently asked questions

    What does remortgaging mean?

    Remortgaging means replacing the mortgage on your existing home with a new mortgage from another lender. You don’t move property: the new mortgage repays the existing one and takes its place.

    Do you have to change lender to remortgage?

    In the usual consumer definition, a remortgage involves moving your mortgage to a different lender. Moving onto another mortgage product with your existing lender is generally known as a product transfer.

    Do you need a deposit to remortgage?

    You don’t normally need another cash deposit in the same way as when buying a home. Instead, lenders look at the equity in your property and the resulting loan-to-value ratio.

    Does remortgaging affect your credit score?

    Applying for a mortgage with a new lender may involve credit searches as part of the application process. The type and timing of searches can vary, so you shouldn’t assume every lender follows exactly the same process.

    Can you remortgage before your fixed rate ends?

    Potentially. However, an early repayment charge may apply if you leave your existing mortgage before the end of the deal. The costs of switching early should be compared with any potential benefit.

    Can you remortgage and borrow more money?

    Potentially, provided the additional borrowing meets the lender’s affordability, LTV and other criteria. The purpose of the extra borrowing can also affect which lenders or products are available.

    [/FAQ]

  • What is the Right to Buy cost floor rule?

    What is the Right to Buy cost floor rule?

    The Right to Buy cost floor rule is one reason your Right to Buy discount could be lower than expected. It can apply where your landlord has spent money buying, building, repairing, maintaining or improving your home.

    A lower discount means a higher purchase price. That can increase the amount you need to borrow through a Right-to-Buy mortgage and affect whether the discount can help as your deposit.

    The cost floor is one of several rules that can affect how Right to Buy works and the final price you are offered for your council home.

    [TOC]

    What is the Right to Buy cost floor rule?

    The cost floor limits how far your discount can reduce the price of your home.

    It looks at certain costs your landlord has incurred on the property over a set period. If those costs mean the home cannot be sold as cheaply as your normal discount would suggest, your discount can be reduced.

    It does not affect every purchase, and it does not always remove the discount. Your landlord confirms whether it applies and how it affects your offer.

    How long does the cost floor period last?

    Under current GOV.UK guidance, the cost floor period is generally 30 years.

    For applications successfully lodged before 21 November 2024, it is generally 10 years, or 15 years where the home was built or acquired by the landlord on or after 2 April 2012.

    A 15-year period also applies to Preserved Right to Buy, so the rules affecting your purchase can depend on which scheme and application date apply to you.

    Example of how the cost floor could affect your price

    Suppose your home is valued at £160,000:

    • Expected discount: £26,000
    • Expected purchase price: £134,000
    • Cost-floor minimum sale price: £148,000
    • Revised discount: £12,000
    • Revised purchase price: £148,000

    Here, the discount falls by £14,000, so the buyer would need to cover an extra £14,000 through their mortgage, cash or both.

    This is only an example. Your landlord calculates the actual figures.

    Where will you see the cost floor adjustment?

    If your landlord agrees that you have the Right to Buy, they will send you a Section 125 Notice setting out the proposed price, discount and terms of sale.

    The notice should state if your discount has been reduced because of the cost floor. If the figure is unclear, ask your landlord to explain it. You should also make sure you have told them about improvements you paid for yourself.

    How could the cost floor rule affect your mortgage?

    A smaller discount usually means a higher Right-to-Buy purchase price. That may mean:

    • You need to borrow more.
    • Your estimated monthly repayments rise.
    • The higher mortgage amount affects affordability.
    • The remaining discount is less useful as a deposit.
    • You decide the purchase no longer works for your budget.

    This can be particularly important if you were planning on using your Right to Buy discount as a deposit. Some lenders may accept the discount instead of a separate cash deposit, but a smaller discount can change those figures.

    You can adjust the property value and discount in our Right-to-Buy mortgage calculator to estimate how the revised purchase price could affect your mortgage amount and monthly repayments.

    What should you do if your discount is lower than expected?

    If the figures in your offer are different from what you expected:

    • Check the Section 125 Notice.
    • Ask your landlord to explain the cost-floor adjustment.
    • Check that improvements you paid for yourself have been recorded.
    • Consider independent legal advice if you disagree with or do not understand the figure.
    • Recheck your mortgage numbers before deciding whether to continue.

    A mortgage broker cannot decide whether the cost floor has been applied correctly. Their role becomes more relevant once your landlord has confirmed the revised price and discount.

    When to speak to a mortgage broker

    Once those figures are known, a broker can check whether the higher borrowing amount looks affordable, whether the remaining discount may still work as a deposit and which lenders may consider the case.

    If the cost floor has changed the amount you need to borrow, getting help with a Right-to-Buy mortgage can help you understand whether the revised purchase price still works with your income, deposit position and lender options.

    [FAQ]

    FAQs

    Why has my Right-to-Buy discount been reduced?

    The cost floor is one possible reason. It can limit the discount where your landlord has incurred certain costs on the property.

    Does the cost floor mean I cannot buy my council house?

    No. It may increase the purchase price, but it does not automatically stop you buying.

    Can I challenge the cost floor figure?

    If you do not understand or agree with the adjustment, ask your landlord for clarification and consider independent legal advice.

    Does the cost floor affect my mortgage?

    It can. A reduced discount increases the purchase price, which may mean you need a larger mortgage and could change your affordability.

    Can the discount still be used as a deposit?

    Potentially. Some lenders may accept the remaining discount as a deposit, but this depends on the lender and your wider application.

    [/FAQ]

  • Right to Buy vs Right to Acquire: What’s the difference?

    Right to Buy vs Right to Acquire: What’s the difference?

    Right to Buy and Right to Acquire can both help some social housing tenants buy their rented home at a discount, but they are different schemes. Right to Buy is mainly for eligible council tenants. Right to Acquire may apply to some housing association tenants, while others may have Preserved Right to Buy because their home transferred from a council.

    Your landlord must confirm which scheme, if any, applies.

    [TOC]

    Right to Buy vs Right to Acquire: the simple difference

    SchemeUsually applies toDiscountEligibility confirmed by
    Right to BuyEligible council tenantsRegional cash limits applyCouncil or landlord
    Preserved Right to BuySome tenants whose home transferred from a councilSimilar to Right to BuyHousing association or landlord
    Right to AcquireSome housing association tenantsUsually a smaller fixed discountHousing association or landlord

    Your landlord, tenancy history and property all matter. Eligibility is not automatic.

    What is Right to Buy?

    Right to Buy may allow you as an eligible council tenant in England to buy your council home below its full market value.

    The property normally needs to be your main or only home, be self-contained and be held under a secure tenancy. You will also usually need at least three years as a public-sector tenant. Your council must assess the application.

    What is Preserved Right to Buy?

    Most housing association tenants do not have standard Right to Buy. You may have Preserved Right to Buy if you were a secure council tenant and lived in the property when it transferred to a housing association.

    For example, if your council transferred your home but you remained there, your right may have been preserved. Your landlord can confirm whether this applies.

    What is Right to Acquire?

    Right to Acquire may allow an eligible housing association tenant in England to purchase their rented home at a discount.

    Both the tenant and property must qualify. The property generally needs to have been built, bought or transferred under the scheme’s rules, and the landlord must be registered with the Regulator of Social Housing.

    The April 2026 GOV.UK guide says discounts are between £9,000 and £16,000, depending on location.

    Which scheme might apply to you?

    As a broad guide:

    • Council tenant: Right to Buy may apply.
    • Housing association tenant who lived in the home when it transferred from a council: Preserved Right to Buy may apply.
    • Other housing association tenant: Right to Acquire may be worth checking.

    Your landlord must check the full circumstances, including the property and tenancy history.

    How do the discounts compare?

    Right to Buy discounts can depend on the property type and how long you have been a public-sector tenant, but a regional maximum cash limit also applies.

    For eligible applications received from 21 November 2024 onwards, current maximum Right to Buy cash discounts range from £16,000 to £38,000, depending on the region. Earlier applications may have been assessed under the previous, higher limits.

    Right to Acquire offers a fixed cash discount of £9,000 to £16,000, based on location.

    Discount rules can change, so check current official guidance and ask your landlord to confirm the amount.

    Can you get a mortgage with either scheme?

    Qualifying for a scheme does not guarantee mortgage approval. A lender will still assess whether the loan is affordable and whether the property is acceptable security.

    It may consider:

    • Income and spending
    • Loans and other debts
    • Your credit score and history
    • Age and mortgage term
    • Property type, value and discounted price
    • How its criteria treat the discount

    A mortgage with adverse credit may still be possible, but missed payments or defaults can reduce your options. Getting a self-employed mortgage may involve extra checks on how your income is calculated.

    Can the discount be used as a deposit?

    Some lenders may accept the Right to Buy discount as some or all of the equity normally provided by a cash deposit. Others may require your own money, depending on the mortgage and their limits.

    Treatment of a Right-to-Acquire mortgage can also vary. Neither scheme guarantees a no-deposit mortgage, and published lender criteria show that providers approach discounted purchases differently.

    If Right to Buy applies, our Right-to-Buy mortgage calculator can give you a rough estimate of how the discount affects the figures. It is mainly designed around Right-to-Buy calculations.

    Why property type can matter

    Some lenders may be cautious about certain high-rise flats, non-traditional construction, short leases or homes with limited resale demand.

    The lender and its valuer must still be satisfied with its construction, condition and marketability.

    When should you speak to a mortgage broker?

    It may help to speak to a broker after your landlord confirms the scheme, or once you receive a valuation and formal offer.

    A broker can assess affordability, credit history, property type and how lenders may treat the discount. If you want to see whether it’s possible to buy your council home, Monday Mortgages can help through its Right-to-Buy mortgage advice service.

    [FAQ]

    Right to Buy and Right to Acquire FAQs

    What is the difference between Right to Buy and Right to Acquire?

    Right to Buy is mainly for eligible council tenants. Right to Acquire may apply to some housing association tenants and qualifying homes.

    Can housing association tenants use Right to Buy?

    Usually not, but some may have Preserved Right to Buy if they lived in the home when it transferred from a council.

    What is Preserved Right to Buy?

    It is a right that may continue after an occupied council home transfers to a housing association.

    Is the Right to Acquire discount lower than Right to Buy?

    Right to Acquire currently offers £9,000 to £16,000. Maximum Right to Buy cash discounts currently range from £16,000 to £38,000, although an individual discount may be lower.

    Can I get a mortgage with Right to Acquire?

    Possibly, but approval depends on affordability, credit history, the property and the lender’s criteria.

    [/FAQ]

  • Can you get a mortgage when self-employed?

    Can you get a mortgage when self-employed?

    Yes, you can get a mortgage when self-employed. Being self-employed does not automatically stop you from getting a mortgage, but mortgage lenders are also required to assess whether repayments are affordable using evidence of income and expenditure, rather than relying on an income multiple alone.

    Therefore they’ll usually need to see clear evidence of your income, affordability and how sustainable your earnings are.

    That means your application may be assessed slightly differently from someone in standard employment. Instead of relying only on payslips, lenders may look at accounts, tax calculations, bank statements, company income or contracts, depending on how your business is set up.

    For many people asking whether you can get a mortgage when self-employed, the answer is yes, but how straightforward it feels can depend on your trading history, deposit, credit history, income stability and lender choice.

    [TOC]

    Can you get a mortgage when self-employed?

    You can get a mortgage if you’re self-employed, as long as a lender is comfortable that the mortgage is affordable and your income can be evidenced.

    The key point is that lenders usually want to understand:

    • How long you’ve been self-employed
    • How much you earn
    • Whether your income is stable
    • How your income is taken from the business
    • What deposit you have
    • Whether your credit history supports the application
    • Whether you have debts, dependants or regular commitments

    A self-employed mortgage is not a separate type of mortgage. It usually means a normal residential mortgage where your income comes from self-employment rather than employment.

    What counts as self-employed for a mortgage?

    For mortgage purposes, self-employed applicants can include several types of workers and business owners.

    You may be treated as self-employed if you are a:

    • Sole trader
    • Limited company director
    • Contractor
    • Freelancer
    • Partner in a business or partnership

    How your income is assessed can depend on your structure. A sole trader may be assessed using net profit. A company director may be assessed using salary and dividends, or sometimes other business figures depending on the lender.

    For example, if you run your own limited company and take a small salary plus dividends, a lender may look at your income differently from a freelancer who reports annual self-employed profit through self assessment. If this applies to you, a more specific limited company director mortgage guide may be useful later.

    How long do you need to be self-employed to get a mortgage?

    Many lenders prefer to see at least two years of self-employed income evidence. This helps them understand whether your earnings are consistent rather than based on one unusually strong year.

    With two years, lenders can compare income over time and see whether it has stayed stable, grown or declined. With one year, there is less history, so the lender may look more carefully at the rest of the case.

    However, two years is not always a fixed rule across every lender. Some people may still have options with one year’s accounts, especially if the rest of the application is strong. Halifax, for example, currently says it can consider applicants who have been trading for at least one full year, although additional information may be required.

    A strong application could include:

    • A good deposit
    • Clean credit history
    • Strong previous experience in the same industry
    • Stable or growing income
    • Low debts and commitments
    • Clear evidence of ongoing work

    For example, a contractor with one year’s accounts and several years of previous employment in the same sector may be viewed differently from someone who has only recently started a completely new business.

    How income evidence affects your application

    When you apply for a mortgage when self-employed, lenders usually focus on provable income rather than headline turnover.

    For example, if you’re a sole trader, your turnover may look high, but lenders are more likely to focus on profit after business expenses. If you’re a company director, they may look at salary, dividends or other business figures depending on the lender’s criteria.

    Common types of income evidence can include:

    • Finalised accounts
    • SA302 tax calculations
    • Tax year overviews
    • Business bank statements
    • Personal bank statements
    • Contracts or evidence of ongoing work

    If you’re now reporting your income through Making Tax Digital, MTD changes some of the information you send to HMRC, but mortgage lenders still set their own rules about the income evidence they require.

    The aim is usually to check that your income is real, evidenced and likely to continue.

    For example, a sole trader with two years of steady net profit may have a simpler application than someone with large income swings or unclear business records. If you’re not sure what you may need, it can help to check the documents you need for a self-employed mortgage before applying.

    Does your deposit size matter?

    Your deposit can make a difference to self-employed mortgage eligibility, but it is only one part of the application.

    A larger deposit may reduce the lender’s risk and could increase the number of options available. However, it does not replace the need for clear income evidence. A lender still needs to be comfortable that the mortgage is affordable.

    Self-employed applicants do not automatically need a bigger deposit just because they’re self-employed. But if your income is more complex, your trading history is shorter or your credit history is not perfect, a stronger deposit may help the overall case if you’re self-employed.

    For example, someone with a 15% deposit, steady income and clean credit may have more options than someone with a smaller deposit and unclear income evidence.

    How credit history affects self-employed mortgage eligibility

    Credit history still matters when you’re self-employed.

    A good credit history can support your application because it shows lenders you’ve managed borrowing responsibly. Missed payments, defaults, county court judgments or high levels of debt may reduce the number of lenders available.

    This does not always mean you cannot get a mortgage. It means lender choice and the wider details of your application may become more important.

    Lenders may also look at your regular commitments, such as loans, credit cards, car finance, childcare costs and dependants. These can affect affordability because they reduce the amount of income available for mortgage repayments.

    What if your income has gone up or down recently?

    Lenders usually want to know that your income is sustainable, not just high in one month or one year.

    If your profits have increased, that can be positive, but a lender may still want to understand whether the increase is likely to continue. If your profits have dropped, the lender may focus more heavily on the latest year or ask for context around the change.

    For example, if your latest-year profit has fallen because of a one-off expense, that may need explaining. If profits have fallen because the business is receiving less work, that could affect affordability.

    Different lenders may treat changing income differently, which is why it helps to understand how lenders calculate self-employed income.

    How to check how much you might be able to borrow

    Once you know that getting a mortgage when self-employed is possible, the next question is usually how much you might be able to borrow.

    Your borrowing amount can depend on:

    • Your self-employed income
    • Your deposit
    • Your regular debts and commitments
    • Your dependants
    • Your credit history
    • The lender’s affordability rules
    • How your income is evidenced

    A calculator cannot guarantee what a lender will offer, but it can give you a useful rough starting point.

    If you want to estimate what may be possible, use our self-employed mortgage calculator to get an idea of how much you could borrow when self-employed based on your income and deposit.

    When to get mortgage advice

    Mortgage advice can be helpful if your income is not straightforward, you have a short trading history or you’re unsure which lenders may consider your situation.

    This can be especially useful if you:

    • Have one year’s accounts
    • Are a limited company director
    • Have recently changed from employed to self-employed
    • Have income that has gone up or down
    • Take salary and dividends
    • Have retained profits in the business
    • Work as a contractor or freelancer
    • Have credit issues or existing debts

    A broker can help you understand which lenders may be more suitable, what income evidence may be needed and whether your application is likely to fit before you apply. If you’re buying your council home, our guide to buying through Right to Buy when self-employed explains how income evidence and the discount are assessed together.

    If your situation is more complex, Monday Mortgages can help you understand your self-employed mortgage options before you approach lenders.

    [FAQ]

    FAQs

    Is it harder to get a mortgage when self-employed?

    It is not automatically harder to get a mortgage when self-employed, but you may need to provide more evidence of your income. Lenders usually want to see that your earnings are stable, affordable and likely to continue.

    How many years do you need to be self-employed to get a mortgage?

    Many lenders prefer two years of self-employed income evidence, but some may consider applicants with one year’s accounts depending on the wider case. Your deposit, credit history, industry experience and income stability can all matter.

    Can I get a mortgage with one year’s accounts?

    Yes, it may be possible to get a mortgage with one year’s accounts, but it is not guaranteed. Lender choice is important because not every lender will consider shorter trading history in the same way.

    Do I need a bigger deposit if I’m self-employed?

    Not automatically. A bigger deposit can help because it may reduce lender risk, but self-employed applicants do not always need a larger deposit just because of how they earn their income.

    Do lenders use profit or turnover for self-employed mortgages?

    Lenders usually focus on profit or income taken from the business, not turnover alone. For sole traders, this may mean net profit. For company directors, lenders may look at salary, dividends or other company figures depending on their criteria.

    Can company directors get self-employed mortgages?

    Yes, company directors can get mortgages. The lender may assess salary, dividends, retained profit or a combination of income sources depending on the case and the lender’s rules.

    [/FAQ]

  • Can you buy your council house?

    Can you buy your council house?

    If you live in a council property, you might be wondering whether you can buy your council house and become the owner of the home you already live in.

    The short answer is: some council tenants may be able to buy their home through Right to Buy, but it depends on your tenancy, your property and your personal circumstances. Your council or landlord must confirm whether you’re eligible.

    If you do qualify, the next question is usually whether buying your council house is affordable and whether you can get a mortgage. These are separate checks. Being eligible for Right to Buy doesn’t automatically mean a lender will approve you for a mortgage.

    [TOC]

    Can you buy your council house?

    You may be able to buy your council house if you meet the Right to Buy rules. These rules look at things like your tenancy type, how long you’ve been a public sector tenant, whether the property is your main home and whether the home itself can be bought under the scheme.

    For most people, the first step isn’t the mortgage. It’s checking whether you actually have the right to buy the property.

    Your landlord or council is responsible for confirming this. A mortgage broker can help with the mortgage side, but they can’t confirm your legal eligibility for Right to Buy.

    What is Right to Buy?

    Right to Buy is a scheme that can allow eligible council tenants to buy their council home at a discount.

    Instead of paying the full market value, you may be able to buy at a reduced price. The discount depends on factors such as how long you’ve been a public sector tenant, the type of property, where it is and any rules that reduce or cap the discount.

    If you’re starting to look at the mortgage side, our Right-to-Buy mortgages page can help explain how lenders may look at the application.

    What might affect whether you can buy your council home?

    Several things can affect whether you can buy your council home through Right to Buy.

    CheckWhy it matters
    Tenancy typeRight to Buy usually depends on having the right type of tenancy.
    Main homeThe property usually needs to be your only or main home.
    Tenancy historyYour time as a public sector tenant can affect whether you qualify and the discount.
    Property typeSome homes may be excluded from Right to Buy.
    Legal or tenancy issuesDebt, possession or tenancy issues may affect the application.
    Landlord confirmationYour council or landlord must confirm whether you’re eligible.

    Some homes may be excluded because of the property type, the type of tenancy, planned demolition, or because the property is specially suited to elderly or disabled residents.

    This is why it’s important to check with your landlord before making firm plans around purchasing your council house.

    Why tenancy type matters

    Your tenancy type is one of the biggest factors.

    Right to Buy is mainly associated with secure council tenants. If you’re not sure whether you’re a secure tenant, your tenancy agreement or landlord should be able to confirm this.

    Some tenants may also have Preserved Right to Buy. This can apply where someone was originally a council tenant, but the home was transferred to another landlord, such as a housing association.

    The key point is that not every social housing tenant has the same rights. Before thinking too far ahead about buying a council house, make sure you understand what type of tenancy you have.

    Can housing association tenants buy their home?

    Housing association tenants may not always have the same rights as council tenants.

    Some may have Preserved Right to Buy if they were living in the home when it transferred from the council to a housing association. Others may have a different option, such as Right to Acquire, depending on their circumstances.

    Our guide to Right to Buy and Right to Acquire explains the main differences between the schemes and which type of tenant each one may apply to.

    If you rent from a housing association, check directly with them. They can confirm whether Right to Buy, Preserved Right to Buy, Right to Acquire or another option may apply.

    How much discount could you get?

    The Right to Buy discount reduces the price you pay for the property.

    The amount can depend on the type of property, how long you’ve been a qualifying public sector tenant, the value of the property, where it is and whether any rules reduce the discount.

    Here’s a simple example of how the discount could affect the purchase price:

    ExampleAmount
    Property value£180,000
    Right to Buy discount£20,000
    Discounted purchase price£160,000
    Mortgage needed before any cash contribution£160,000

    This is only a simple example. Your actual Right to Buy discount and purchase price would need to be confirmed by your landlord.

    What happens after you apply to buy your council house?

    The process usually starts with checking whether you may be eligible and then submitting the Right to Buy application to your landlord.

    At a high level, the process looks like this:

    StepWhat happens
    Check eligibilityYou look at whether Right to Buy may apply to your tenancy and property.
    ApplyYou submit the Right to Buy application to your landlord.
    Landlord responseYour landlord confirms whether they accept that you have the right to buy.
    Offer noticeIf accepted, your landlord provides details of the valuation, discount and purchase price.
    Decide whether to continueYou review the numbers and decide whether buying your council home still makes sense.
    Arrange the mortgageIf you need a mortgage, this is when the lender side becomes more important.
    Complete the purchaseYour solicitor handles the legal process through to completion.

    You don’t have to continue just because you’ve applied. If the numbers don’t work, or you decide home ownership isn’t right for you, you can choose not to proceed.

    Can you get a mortgage to buy your council house?

    Many people need a mortgage unless they can buy the property outright.

    A lender will still assess your application in the normal way. They’ll usually look at your income, outgoings, credit history, debts, age, mortgage term and the property itself.

    This is an important distinction:

    Right to Buy eligibilityMortgage approval
    Confirmed by your council or landlordDecided by the lender
    Looks at your tenancy and propertyLooks at income, affordability and credit history
    Confirms whether you can apply to buyConfirms whether you can borrow enough
    May include a discountMay depend on whether the lender accepts the discount as deposit

    Some properties can also be more difficult to mortgage. For example, certain flats, high-rise blocks or non-standard construction properties may reduce the number of lenders available.

    If you want help with a Right-to-Buy mortgage, it can be useful to speak to a broker before making assumptions about what you can borrow.

    Could the discount help with the deposit?

    In some cases, yes.

    Some lenders may allow the Right-to-Buy discount to take the place of some or all of a separate cash deposit.

    Halifax, for example, currently allows lending up to 100% of the discounted purchase price, subject to its normal valuation-based lending limits.

    However, this isn’t guaranteed. It depends on the lender, the size of the discount, the property and your wider circumstances.

    For example, one lender might be comfortable using the discount as the deposit, while another may still want you to contribute some of your own money. This is one reason why Right-to-Buy mortgage options can vary between lenders.

    You can use our Right-to-Buy mortgage calculator to get a rough idea of how the discount could affect the purchase price, mortgage amount and possible deposit position.

    What might affect your mortgage options?

    Your mortgage options may depend on both your finances and the property you’re buying.

    FactorHow it may affect your mortgage
    IncomeHelps lenders decide how much you may be able to borrow.
    Employment typeSelf-employed applicants may need different income evidence.
    Benefits incomeSome lenders may accept certain benefits income, but rules vary.
    Monthly commitmentsLoans, credit cards and other regular payments can reduce affordability.
    Credit historyMissed payments, defaults or arrears may reduce lender options.
    Age and mortgage termThe mortgage term can affect monthly payments and lender criteria.
    Property typeSome properties can be harder to mortgage.
    Discount sizeA larger discount may improve the numbers, but it doesn’t guarantee approval.
    Deposit treatmentSome lenders may use the discount as the deposit, while others may not.

    If you’re self-employed, you may need to show your income in a way the lender accepts. Our self-employed mortgage advice can help explain what lenders may ask for.

    If you’ve had credit issues, such as missed payments, defaults or arrears, your options may be narrower. In that situation, it may be worth looking at adverse credit mortgage support before applying.

    When should you speak to a mortgage broker?

    You may want to speak to a mortgage broker once you’ve started checking whether you can buy your council house, especially if you want to understand whether the mortgage side is likely to work.

    This can be helpful if you’ve received or estimated the property value, you’re unsure whether the discount can count as your deposit, you’re self-employed, you have credit issues, or the property type may be harder to mortgage.

    If you’re thinking about buying your council home and want to understand the mortgage side, Monday Mortgages can help you check your options.

    You can also use our Right-to-Buy mortgage calculator to estimate your discounted purchase price, mortgage amount and possible deposit position.

    [FAQ]

    FAQs

    Can you buy your council house?

    Some council tenants may be able to buy your council house through Right to Buy, but eligibility depends on your tenancy, property and circumstances. Your landlord or council must confirm whether you qualify.

    Can you buy your council house if you’re on benefits?

    Possibly. Being on benefits doesn’t automatically mean you can’t buy, but mortgage lenders will look at whether your income is acceptable and whether the mortgage is affordable.

    Can you buy your council house if you’re self-employed?

    Yes, being self-employed doesn’t automatically stop you from buying your council house. Lenders will usually want to understand your income, trading history and affordability before offering a mortgage.

    Can you buy your council house without a deposit?

    Some lenders may accept the Right to Buy discount as the deposit, meaning a separate cash deposit may not always be needed. This depends on the lender, your circumstances and the property.

    Can you buy your council house with bad credit?

    Bad credit doesn’t always make it impossible, but it can limit your options. Lenders will look at what happened, how recent it was, how serious it was and whether your finances are now stable.

    Is being eligible for Right to Buy the same as getting a mortgage?

    No. Right to Buy eligibility is confirmed by your landlord or council. Mortgage approval is decided by a lender based on income, affordability, credit history and the property.

    [/FAQ]

  • What is Right to Buy and how does it work?

    What is Right to Buy and how does it work?

    If you’re a council tenant and have started looking into ways to buy your home, you may have come across Right to Buy. It’s a scheme that can allow eligible tenants to buy their council home at a discount, which may make home ownership feel more achievable.

    But it’s important to understand how the scheme works before assuming it’s the right route for you. Right to Buy can reduce the price you pay, but it doesn’t automatically mean you’ll qualify, get the maximum discount or be approved for a mortgage.

    This guide focuses on Right to Buy in England. Different rules may apply in Scotland, Wales and Northern Ireland.

    [TOC]

    So what is Right to Buy?

    The simple answer is that it’s a government scheme that may let eligible council tenants buy the home they already live in for less than its full market value.

    The discount is based on your circumstances and the rules that apply when you apply. It isn’t paid to you as cash. Instead, it reduces the purchase price of the property.

    For example, if your home is valued at £180,000 and your confirmed discount is £26,000, the price you pay would be £154,000.

    That lower price can make buying your council home more realistic, especially if you’ve lived there for a long time and want to stay in the property.

    Who is Right to Buy for?

    Right to Buy is generally aimed at eligible council tenants.

    Some housing association tenants may also have something called Preserved Right to Buy if their home was transferred from the council to another landlord while they were living there.

    Other housing association tenants may need to check whether Right to Acquire applies instead. Our guide to the difference between Right to Buy and Right to Acquire explains how the schemes compare.

    At a high level, your eligibility can depend on things like:

    • Whether you’re a secure tenant
    • Whether the property is your only or main home
    • Whether the property is self-contained
    • Whether you’ve had a public sector landlord for at least 3 years in total — the years don’t have to be consecutive
    • Whether any exclusions apply

    This article isn’t a full eligibility guide, and your landlord or council should confirm whether you qualify. If you’re unsure, that’s usually the best first place to check.

    For a closer look at eligibility, see our guide to whether you can buy your council house.

    How does the Right-to-Buy discount work?

    The Right-to-Buy discount reduces the price you pay for your home. It can depend on several factors, including the type of property, where it is, how much it’s worth and how long you’ve been a qualifying tenant.

    Under the April 2026 government guidelines, maximum cash discounts are currently between £16,000 and £38,000, depending on location.

    For eligible applications received before 21 November 2024, the previous maximum discounts apply: up to £102,400 across England, or £136,400 in London boroughs.

    There are also rules that can reduce the discount. For applications made after 21 November 2024, for example, the discount can be reduced if your landlord has spent money building or maintaining the home during the previous 30 years. This is known as the cost floor rule.

    Your landlord will confirm the property valuation, the discount and the price you’d need to pay.

    How does buying your council home work?

    The exact process is handled through your landlord, but the broad steps usually look like this:

    • Check whether you may be eligible
    • Apply through your landlord or council
    • Wait for the landlord’s response
    • Receive the offer notice, valuation and confirmed discount
    • Review the price and terms
    • Arrange a mortgage if needed
    • Get legal advice and complete the purchase

    You don’t have to continue just because you’ve applied. You can pull out of the sale and continue renting at any time.

    Do you need a mortgage for Right to Buy?

    Many people need a mortgage unless they can buy the home outright with cash.

    People often use the phrase Right to Buy mortgage, but this usually means a normal mortgage used to buy a property through the Right to Buy scheme. It isn’t a separate government mortgage product.

    That means the lender will still assess your application. They’ll usually look at your income, spending, credit history, debts, age, mortgage term and the property itself.

    This is where Right to Buy mortgages can be slightly different from a standard home purchase. The property may already have a confirmed discount, and some lenders may treat that discount in a helpful way. But lender criteria can vary, so it’s worth checking your options before assuming every lender will view the application the same way.

    Can the Right-to-Buy discount help with the deposit?

    In some cases, yes. Some lenders may accept the discount as the deposit, which could mean you don’t need a separate cash deposit.

    But this isn’t guaranteed.

    It can depend on the lender, your affordability, your credit history, the property type and the size of the discount, as noted in the government guidance for buyers. Some lenders may still want you to contribute cash, or they may have specific rules around how the discount is treated.

    This is one reason Right-to-Buy mortgage advice can be useful before you get too far into the process. A broker can help you understand which lenders may be comfortable with your situation and whether the discount could work as the deposit.

    Example of how Right to Buy could work

    Here’s a simple example:

    • Estimated property value: £180,000
    • Example Right-to-Buy discount: £26,000
    • Discounted purchase price: £154,000
    • Mortgage needed: £154,000, if no separate cash deposit is used

    In this example, the discount reduces the amount the buyer needs to borrow. If a lender accepts the discount as the deposit, the buyer may not need to put in a separate cash deposit.

    But this is only an example. Your actual figures will depend on your property value, confirmed discount, lender criteria and personal circumstances.

    You can use our Right-to-Buy mortgage calculator to get a rough idea of how the discount could affect your purchase price, mortgage amount and possible deposit position.

    What could affect your mortgage options?

    Even with a discount, the lender still needs to decide whether the mortgage is affordable and whether the application meets its lending criteria.

    They may look at:

    • Your income
    • Your employment type
    • Your regular spending
    • Loans, credit cards and other commitments
    • Your credit history
    • Your age and mortgage term
    • The property type and condition
    • Whether the discount can be treated as deposit

    FCA affordability rules require regulated mortgage lenders to take account of income, committed expenditure and essential household costs when assessing affordability.

    The property itself can also matter. Some lenders may be more cautious with certain flats, high-rise blocks, non-standard construction or properties with major repair concerns.

    If you’ve had credit issues such as missed payments or defaults, that doesn’t always mean buying is impossible, but it may affect which lenders are available. In that situation, it may help to look at adverse credit mortgage options before applying.

    If you’re self-employed, lenders may also look closely at how your income is evidenced. You may want to understand self-employed mortgage advice before relying on your income figures. Our guide to self-employed Right-to-Buy mortgages explains the income evidence lenders may need.

    What other costs should you think about?

    Right to Buy isn’t only about the purchase price and mortgage payment. Once you own the home, you’ll usually be responsible for more costs than you were as a tenant.

    These can include:

    • Legal fees
    • Survey costs
    • Mortgage fees
    • Buildings insurance
    • Repairs and maintenance
    • Service charges if you’re buying a flat or leasehold house

    If you’re buying a flat, you’ll usually become a leaseholder. The landlord will normally remain responsible for maintaining the wider building and communal areas, while you’ll pay your share through service charges and may also have to contribute towards major works.

    For Right to Buy leaseholders, the landlord must also provide an estimate of service charges for the first five years when you buy.

    It’s also worth checking the current resale rules if you think you might sell later. If you sell within five years of buying through Right to Buy, you’ll usually have to repay some or all of the discount. If you sell within 10 years, you must first offer the property to your old landlord or another social landlord in the area. If you plan to borrow more after buying, our guide to releasing equity from a Right-to-Buy property explains why the discount repayment rules and lender criteria need separate consideration.

    When should you speak to a mortgage broker?

    You may want to speak to a mortgage broker once you have an idea of the property value, discount and likely purchase price.

    It can also help to speak to someone earlier if you’re unsure whether the numbers are realistic, whether your income is likely to fit, or whether the discount could be accepted as the deposit.

    A broker can help explain lender options, affordability and what may be possible based on your situation.

    If you’re thinking about buying your council home and want to understand the mortgage side, Monday Mortgages can help you check your options. You can also use our mortgage calculators to estimate your mortgage costs before deciding what to do next.

    [FAQ]

    FAQs

    What is Right to Buy?

    Right to Buy is a scheme that may allow eligible council tenants to buy the home they live in at a discount. The discount reduces the purchase price rather than being paid to you as cash.

    Who can use Right to Buy?

    Right to Buy is generally for eligible council tenants, although some housing association tenants may have Preserved Right to Buy. Your landlord or council should confirm whether you and your property qualify.

    How much discount can you get with Right to Buy?

    The discount depends on factors such as the property, location, value and your qualifying tenancy history. Under the April 2026 government guide, maximum cash discounts are currently between £16,000 and £38,000, depending on location.

    Do you need a deposit for Right to Buy?

    Not always. Some lenders may accept the Right-to-Buy discount as the deposit, but this depends on the lender and your circumstances. A separate cash deposit may still be needed in some cases.

    Can you get a mortgage for Right to Buy?

    Yes, many people use a mortgage to buy their home through Right to Buy. A Right to Buy mortgage is still assessed by the lender, so affordability, credit history and property type still matter.

    Is Right to Buy the same as getting a mortgage approved?

    No. Right to Buy relates to whether you can buy your home through the scheme. Mortgage approval is a separate lender decision based on your finances, the property and the lender’s criteria.

    [/FAQ]

  • Can your Right to Buy discount be used as a deposit?

    Can your Right to Buy discount be used as a deposit?

    If you’re buying your council home through Right to Buy, one of the biggest questions is whether you need savings for a mortgage deposit.

    The short answer is: some lenders may accept your Right to Buy discount as deposit, which means you may not need a separate cash deposit. But this isn’t guaranteed. It depends on the lender, the size of your discount, the property, your income, your credit history and whether the mortgage is affordable.

    A Right to Buy discount can make a big difference to the amount you need to borrow. But a Right to Buy mortgage still has to meet lender criteria, so it’s important to understand how the deposit side works before you apply.

    Right to Acquire is a separate scheme with different discount rules. If you rent from a housing association, our guide to Right to Buy and Right to Acquire can help you understand which scheme may be relevant before looking at the mortgage figures.

    [TOC]

    Can your Right to Buy discount be used as a deposit?

    In some cases, yes. Some lenders may treat the discount you receive through Right to Buy as your deposit.

    This can be helpful because the discount reduces the price you pay for the property. Instead of saving a traditional 5%, 10% or 15% cash deposit, your discount may create enough equity for the lender to consider the mortgage without you putting in extra money.

    For example, if your home is worth £160,000 and your council sells it to you for £144,000 after a £16,000 discount, some lenders may consider lending the full £144,000 purchase price without you adding a separate cash deposit.

    That said, lender treatment varies. Some may accept the discount instead of a separate cash deposit, while others may apply different deposit or loan-to-value requirements.

    This is also reflected in the official government guidance, which notes that some lenders treat the Right to Buy discount as the deposit while others do not.

    This is where qualified Right to Buy mortgage advice can help, especially if you’re unsure which lenders are likely to consider your case.

    How a Right to Buy deposit works

    With a standard house purchase, the deposit is usually money you contribute from your own savings. If you buy a £200,000 home with a 10% deposit, you pay £20,000 and borrow £180,000.

    Right to Buy works differently.

    There are three separate parts to understand:

    • The market value of the property
    • The Right to Buy discount offered by your council or landlord
    • The discounted purchase price you actually pay

    The discount isn’t cash sitting in your bank account. It’s a reduction in the purchase price. But because you’re buying the property below its market value, some lenders may treat that discount as equity in the property. This does not mean you can automatically withdraw that equity later; our guide to borrowing against your Right-to-Buy equity explains the restrictions and checks that can apply.

    That’s why a Right to Buy mortgage deposit can be different from a normal mortgage deposit. In some cases, the discount does the job that a cash deposit would normally do.

    That means “no cash deposit” is usually a clearer way to think about it. The key question is whether your lender will accept the discount instead of a separate cash contribution.

    Example of a Right to Buy discount as deposit

    Here’s a simple example using a £16,000 discount. Actual discounts depend on your circumstances and location, with current regional maximum cash discounts ranging from £16,000 to £38,000.

    ItemAmount
    Market value£160,000
    Right to Buy discount£16,000
    Discounted purchase price£144,000
    Cash deposit£0
    Mortgage needed£144,000

    In this example, the buyer needs a mortgage of £144,000 to buy a property worth £160,000.

    If the lender allows borrowing of 100% of the discounted purchase price at this level of loan-to-value, the buyer may not need to add a separate cash deposit.

    However, this still depends on lender criteria. If the buyer has credit issues, high debts, unstable income or the property raises concerns, the lender may take a different view.

    You can use a Right to Buy mortgage calculator to estimate your discounted purchase price and see how the numbers could look before speaking to a broker.

    Discounted purchase price vs market value

    One point that can cause confusion is loan-to-value, often shortened to LTV. With Right to Buy, lenders can apply limits using both the discounted purchase price and the property’s open-market value.

    Using the example above:

    • Market value: £160,000
    • Discounted purchase price: £144,000
    • Mortgage requested: £144,000

    The mortgage is therefore 100% of the discounted purchase price, but 90% of the property’s open-market value.

    This distinction matters because lender criteria differ.

    Lender criteria can differ on how they calculate loan-to-value for Right to Buy, so the maximum borrowing available can depend on both the discounted purchase price and the property valuation.

    Halifax says it may accept loans up to 100% of the discounted purchase price, provided the loan stays within its lending limits based on the valuation.

    This is one of the main reasons a Right to Buy mortgage with no cash deposit may be possible with some lenders, but not with others.

    Why some lenders may still ask for a cash deposit

    Even if you have a large discount, a lender may still ask for a cash deposit or extra evidence.

    Reasons can include:

    • The lender doesn’t accept the full discount as deposit
    • Your affordability is tight
    • You have missed payments, defaults or other credit issues
    • You have existing debts or commitments
    • The property type is harder to lend on
    • The valuation raises concerns
    • Your income is harder to evidence
    • The lender wants to see funds for fees or other costs

    A Right to Buy no deposit mortgage should never be treated as automatic. The discount can help, but the lender still needs to be comfortable with the whole application.

    You should also remember that no cash deposit doesn’t mean no costs at all. You may still need money for legal or conveyancing fees, surveys or valuations, mortgage fees and other costs involved in buying your home.

    What lenders may check before accepting the discount

    Before accepting the discount as your mortgage deposit amount, lenders may look at:

    • Your income
    • Your monthly commitments
    • Your credit history
    • Your employment type
    • Whether you’re self-employed
    • Whether any benefits income is being used
    • The property value
    • The property condition
    • The discounted purchase price
    • The size of the discount
    • Council or landlord paperwork
    • Whether the mortgage is affordable

    The discount can improve the equity position, but it does not replace the lender’s affordability checks. Under FCA affordability rules, regulated mortgage lenders must assess affordability using the applicant’s income and expenditure and must not base that assessment on the equity in the property.

    If you’re self-employed, the lender may need more detail about your accounts, tax calculations or business income. In that case, it may help to understand your self-employed mortgage options before applying. Our guide to self-employed Right-to-Buy mortgage requirements explains how lenders assess your income alongside the discount.

    If you’ve had missed payments, defaults or other credit issues, you may need a lender that is more comfortable with an adverse credit mortgage case.

    Can you get a Right to Buy mortgage with no cash deposit?

    Yes, it may be possible in some cases. If the lender accepts the Right to Buy discount as the deposit, and the rest of your application fits their criteria, you may be able to buy without putting down a separate cash deposit.

    But this depends on the full situation.

    A lender will still want to know that the mortgage is affordable, the property is acceptable security and your credit history fits their rules. They may also want to see that you can cover the other costs involved in buying your home.

    Before relying on the discount, check your eligibility and discount amount with your council or landlord. They are the ones who confirm whether you qualify and how much discount you may receive.

    What if you have adverse credit?

    Adverse credit doesn’t always mean you can’t get a Right to Buy mortgage. But it can reduce the number of lenders available to you.

    A lender may look at:

    • What the credit issue was
    • How long ago it happened
    • Whether it has been settled
    • How your finances look now
    • Whether the mortgage is affordable

    If the discount is strong but your credit history is more complex, it may be worth getting advice before applying.

    A failed application can be frustrating, especially if the issue could have been avoided by choosing a more suitable lender.

    Getting mortgage advice before applying

    Right to Buy can be a strong route into home ownership, especially if your discount reduces or removes the need for a cash deposit.

    But lender criteria can vary. One lender may accept the discount as deposit, while another may ask for extra cash or decline the case for a different reason.

    A broker can help check which lenders may consider your discount, how they may assess your loan-to-value, and whether your income and credit profile are likely to fit.

    If you’re buying your council home and are unsure whether your discount could work as your deposit, Monday Mortgages can help you understand your options before you apply. You can get help with a Right to Buy mortgage and check whether a lender may accept your discount instead of a separate cash deposit.

    You can also use our Right to Buy mortgage calculator to check your figures and see how your discount could affect the numbers.

    [FAQ]

    FAQs

    Can I use my Right to Buy discount as my mortgage deposit?

    Some lenders may accept your Right to Buy discount as your deposit. This means you may not need a separate cash deposit, but it depends on the lender and your wider application.

    Do I need savings to buy my council house?

    Not always. Some buyers can use their discount instead of a cash deposit. However, you may still need savings for legal fees, valuation fees, moving costs or other purchase costs.

    Can I get a Right to Buy mortgage with no cash deposit?

    It may be possible with some lenders if they accept the discount as deposit and the mortgage is affordable. It isn’t guaranteed, and lender criteria can vary.

    Do all lenders accept the Right to Buy discount as deposit?

    No. Some lenders may accept the discount as the full deposit, while others may want a separate cash deposit or apply different rules.

    Does bad credit affect using the discount as deposit?

    Yes, it can. Credit issues may limit your lender options, even if the discount means you’re borrowing less relative to the property’s market value.

    Can self-employed applicants use the Right to Buy discount as deposit?

    Potentially, yes. The lender will still need to check your income evidence, affordability and wider application before deciding.

    [/FAQ]

  • Do self-employed people need a bigger mortgage deposit?

    Do self-employed people need a bigger mortgage deposit?

    Self-employed people do not automatically need a bigger deposit to get a mortgage.

    A larger deposit can help in some situations, but it is not a rule just because you work for yourself. Lenders usually look at the whole application, including your income, trading history, credit profile, property value and the documents you can provide.

    So, when it comes to your self-employed mortgage deposit, the real question is not simply “how much deposit do I need?” It is whether your deposit, income evidence and lender choice work together.

    [TOC]

    So do self-employed people need a bigger mortgage deposit?

    Not necessarily.

    Being self-employed does not automatically mean you need a larger deposit than someone in employment. Many self-employed applicants can get a mortgage with a typical deposit, provided the rest of the application is strong enough.

    Lenders mainly want to understand whether your income is stable, affordable and provable. This can be more detailed for self-employed applicants because income is not always as simple as a monthly payslip.

    For example, a sole trader may be assessed using business profits. A limited company director may be assessed using salary and dividends, or salary plus a share of company net profit, depending on the lender.

    The difference can be significant. HSBC, for example, currently uses salary plus the applicant’s share of average net profit after corporation tax, while Halifax can use salary and dividends or, in some cases, salary plus net profit.

    This is why getting a mortgage when self-employed often comes down to finding a lender that understands your income properly, not just saving the biggest deposit possible.

    Why deposit size matters to mortgage lenders

    Your deposit affects your loan-to-value, often shortened to LTV.

    Loan-to-value is the percentage of the property price you are borrowing from the lender.

    For example:

    • Property price: £300,000
    • Deposit: £30,000
    • Mortgage: £270,000
    • Loan-to-value: 90%

    A bigger self-employed mortgage deposit means a lower loan-to-value. This usually reduces the lender’s risk because they are lending a smaller share of the property value.

    This can matter because lower loan-to-value borrowing may give you:

    • More lender options
    • More product options
    • Potentially better rates
    • More flexibility if your case has some complexity

    But deposit size is only one part of the picture. A bigger deposit does not remove the need to prove your income or pass affordability checks.

    Under FCA affordability rules, regulated mortgage lenders must assess affordability using evidence of income and expenditure. They cannot base the decision simply on the amount of equity you have in the property.

    Can you get a self-employed mortgage with a 5% deposit?

    A 5% deposit can be possible for self-employed applicants, subject to the lender’s product and underwriting criteria.

    For example, Halifax currently accepts purchase applications above 90% up to 95% LTV, and its published criteria say its standard loan-to-income limits do not change just because an application includes self-employed income.

    With a 5% deposit, you are usually borrowing 95% of the property value. This is higher risk for the lender, so the rest of the application becomes especially important.

    A lender may look closely at:

    • How long you have been self-employed
    • Whether your income is steady or increasing
    • Your credit history
    • Your bank statements
    • How much you want to borrow compared with your income
    • Whether your documents support the income being used

    For example, a sole trader with two or more years of accounts, steady profits and clean credit may have more options with a 5% deposit than someone with one year’s accounts and irregular income.

    This is where having the right documents for a self-employed mortgage can make a difference.

    What changes with a 10% deposit?

    A 10% self-employed mortgage deposit may give you more options than a 5% deposit, because the lender is only lending 90% of the property value.

    That can make the case more comfortable, especially if the income evidence is clear.

    However, a 10% deposit does not make income checks disappear. You still need to show that the mortgage is affordable and that your earnings can be verified.

    For example, if you are a limited company director, one lender may focus on salary and dividends, while another may be willing to consider a broader picture of your company income.

    This is why it helps to understand how lenders calculate self-employed income before assuming your deposit is the main issue.

    When can a 15% deposit help?

    A 15% deposit self-employed mortgage may help if your application has some extra complexity.

    For example, a bigger mortgage deposit can sometimes strengthen the application if you have:

    • Limited trading history
    • Fluctuating income
    • Only one year’s accounts
    • Credit issues or a weaker credit profile
    • A complex income structure
    • Higher borrowing compared with your income

    A 15% deposit means you are usually borrowing 85% of the property value. This can make the risk feel lower for some lenders.

    For example, someone with only one year of accounts and a 15% deposit may have more options than they would with a 5% deposit. But that does not mean approval is guaranteed.

    The lender still needs to be comfortable with the income, affordability and documents.

    If you are recently self-employed or are a limited company director, it may be worth reading more about getting a mortgage with one year’s accounts.

    When a bigger deposit may not be enough

    A bigger deposit can help, but it does not fix every issue.

    There are situations where saving more may not solve the underlying problem, such as:

    • Your income cannot be proven
    • The mortgage is not affordable based on the income lenders can use
    • You have recent serious credit issues
    • Your documents do not support the income figure
    • You are applying to a lender that does not suit your circumstances

    For example, if you have £60,000 in mind as your income but the lender can only verify £35,000 under its criteria, it may base affordability on the lower figure. Even with a bigger deposit, the mortgage may not fit if the borrowing is too high.

    This is why lender choice can matter as much as deposit size.

    The wrong lender may decline a case that another lender would consider differently.

    How deposit size works alongside income evidence

    Lenders do not look at your self-employed mortgage deposit in isolation.

    They look at how your deposit works alongside your income, documents and wider financial position.

    In simple terms:

    • Deposit affects loan-to-value
    • Income affects affordability
    • Credit history affects risk
    • Documents prove the figures
    • Lender criteria decides how everything is assessed

    Self-employed applicants may be asked for evidence such as accounts, SA302s, tax year overviews, business bank statements or company income details.

    Company directors may also need to think about how salary, dividends and company profit are treated. This can make a limited company director mortgage slightly different from a sole trader application.

    Should you wait and save a bigger deposit?

    Sometimes waiting and saving more can help. But it is not always the best answer.

    Saving a bigger deposit may reduce your loan-to-value and improve your options. It may also give you more time to build another year of accounts or strengthen your income evidence.

    But waiting can also have trade-offs. Property prices, mortgage rates and personal circumstances can change.

    If you’re self-employed and buying your first home, the proposed Your First Home scheme may reduce the cash deposit needed for an eligible participating new build. Scheme eligibility would still be separate from the lender’s assessment of your self-employed income and affordability.

    For example:

    A self-employed buyer with a 10% deposit, strong accounts and clean credit may not need to wait until they have 15%.

    But someone with one year’s accounts, fluctuating income and a smaller deposit may benefit from reviewing their options before deciding whether to apply now or wait.

    This is where advice can be useful. A broker can help you compare your current position against what may improve if you save more or wait for another tax year.

    If you are also thinking about affordability, it may help to understand how much you can borrow when self-employed.

    Getting help with a self-employed mortgage application

    If you are self-employed and unsure whether your deposit is enough, the key is to look at the full picture.

    Your deposit matters, but so does your income evidence, business structure, credit history, property price and choice of lender.

    Monday Mortgages can help you understand which lenders may suit your income, documents and overall application.

    If you are starting to look at self-employed mortgages, getting advice early can help you decide whether your current deposit is likely to be enough, or whether it may be better to strengthen your application first.

    [FAQ]

    Frequently asked questions

    Can I get a self-employed mortgage with a 5% deposit?

    Yes, it may be possible in some cases. However, the application usually needs to be strong. Lenders will look closely at your income evidence, credit history, affordability and the property you want to buy.

    Is a 10% deposit enough if I’m self-employed?

    A 10% deposit may be enough for some self-employed applicants. It depends on your lender, income evidence, credit profile and how much you need to borrow.

    Does a bigger deposit make it easier to get a mortgage?

    A bigger deposit can help because it reduces the lender’s risk. But it does not guarantee approval. You still need to show that the mortgage is affordable and that your income can be verified.

    Do company directors need a bigger deposit?

    Not automatically. Company directors may be assessed differently because lenders can use salary, dividends or company profit in different ways. But that does not automatically mean they need a larger deposit.

    Can I get a mortgage with one year’s accounts and a bigger deposit?

    Possibly. A bigger deposit can help, but lenders still need to be comfortable with your trading history, income evidence and affordability.

    Should I save a bigger deposit before applying?

    It depends on your current deposit, income, documents and target property price. Some applicants may already have enough deposit, while others may benefit from saving more or improving their evidence first.

    [/FAQ]