Mortgages, explained without the jargon

First-time buyers

The hardest part of a first purchase isn’t the mortgage — it’s not knowing what you don’t know. We start by telling you what you can realistically borrow, what deposit you actually need, and what the whole thing will cost beyond the deposit.

Once you know your number you can view properties knowing an offer will stand up. We’ll get you an agreement in principle so estate agents take you seriously.

What we’ll cover

• How much you can borrow, based on real lender criteria rather than a rule of thumb
• Deposits from 5%, and which lenders offer 100% or guarantor options
• The First Homes scheme and Shared Ownership, where they’re worth using
• Lifetime ISA rules, including the 25% government bonus and the price cap
• Stamp Duty relief for first-time buyers, and when you lose it
• The full cost list: solicitor, searches, survey, removals, insurance

Remortgaging

When a fixed rate ends you roll onto your lender’s standard variable rate, which is almost always more expensive. Doing nothing is the single costliest mistake in the whole mortgage market.

We start looking about six months before your deal ends, because offers can usually be reserved that far ahead. If rates fall in the meantime we re-check before you complete.

What we’ll cover

• Switching lender versus a product transfer with your current one
• Releasing equity to fund an extension, a loft or a deposit for a child
• Whether consolidating other debts into your mortgage genuinely helps
• Fee-free remortgage deals where the lender covers legals and valuation
• Shortening your term to clear the mortgage sooner
• Rate expiry reminders so this never creeps up on you again

Think carefully before securing other debts against your home. Consolidating debts may increase the total amount payable or extend the term.

Buy-to-let & portfolios

Buy-to-let lending works differently. Rather than lending against your salary, lenders test whether the rent covers the mortgage with a healthy margin — the “rental stress test”. Get that wrong and the loan shrinks fast.

We also advise on whether to hold property personally or through a limited company. That’s a tax question as much as a mortgage one, so we’ll work alongside your accountant rather than guess.

What we’ll cover

• Rental stress tests, and how to structure a deal that passes
• Personal name versus limited company (SPV) ownership
• Portfolio landlord rules once you hold four or more mortgaged properties
• HMOs, multi-unit freehold blocks and holiday lets
• First-time landlords, and lenders who accept them
• Remortgaging a portfolio to release capital for the next purchase

Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Non-regulated buy-to-let mortgages are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme. We do not provide tax advice — please speak to a qualified accountant.

Residential mortgages

The catch-all term for a mortgage on the home you live in, whether you are buying, moving or switching lender. Most of what Ujjwal arranges sits here.

The choices that matter are the same every time: how long to fix for, how long to borrow over, and whether the headline rate or the total cost over the deal period is the better guide. We work through all three with you.

What we’ll cover

• Fixed, tracker and discount rates, and when each one makes sense
• Two, five and ten-year deals, and the early repayment charges attached
• Total cost over the deal period, not just the advertised rate
• Offset mortgages if you hold meaningful savings
• Joint borrower sole proprietor, where a parent helps you qualify
• Overpayment allowances, usually 10% a year without penalty

Your home may be repossessed if you do not keep up repayments on your mortgage.

Bridging & auction finance

Short-term lending, usually 3 to 24 months, for when speed matters more than the rate. Buying at auction, breaking a chain, or funding a refurbishment that no mainstream lender will touch until it is finished.

Bridging is expensive, and it is only ever sensible when the way out is certain. Before anything is arranged, Ujjwal wants to see the exit — a sale, or a remortgage you will definitely qualify for.

What we’ll cover

• Auction purchases, where completion is usually 28 days
• Chain breaks, so you can buy before you have sold
• Light, medium and heavy refurbishment projects
• Residential and commercial bridging
• Uninhabitable property no standard lender will accept
• Your exit route, tested properly before you commit

Some bridging finance is not regulated by the Financial Conduct Authority.

Adverse credit mortgages

A default, a missed payment, a CCJ or a past bankruptcy does not automatically rule you out. Specialist lenders exist precisely for this, and they judge on how long ago it happened, how large it was, and why.

Being turned down by your own bank tells you about that bank, not about the market. What it does mean is that applying scattergun makes things worse, since each hard credit search leaves a mark. One well-chosen application beats five hopeful ones.

What we’ll cover

• Missed payments, defaults and CCJs, and how much recency matters
• Discharged bankruptcy, IVAs and debt management plans
• Reading your credit file properly before anyone applies
• Realistic deposit expectations, often 15% or more
• A plan to move onto a mainstream rate once the adverse ages out
• Correcting mistakes on your file, which is more common than people think