At a glance
- A mortgage is a loan secured on your home. The main types are fixed, tracker and variable rate, and repayment or interest-only.[1]
- Lenders must check you can afford it, using independent evidence of your income, and allow for rates rising by at least 1 percentage point over at least five years.[2]
- Anyone advising on a mortgage must be authorised by the Financial Conduct Authority, and you can check on the FCA register.[3]
- We are an estate agent, not a mortgage adviser, so we do not advise on mortgages. We can point you to the right questions to ask.
Rules and figures last checked October 2026.
The main types of mortgage
The Financial Conduct Authority describes the common choices like this.[1]
| Type | What it means |
|---|---|
| Fixed rate | The rate stays the same for an agreed period, so it is not immediately affected by rate rises. The rise can bite when the deal ends and you switch. |
| Tracker | Linked to an external rate, such as the Bank of England’s base rate, so your payments move when it does. |
| Standard variable | The rate is typically set by your lender and can rise at any time. |
- Repayment mortgages pay off the loan and the interest over the term. Lenders must assess affordability on both the repayment of capital and the payment of interest over the term.[2]
- Interest-only mortgages are only available to those who have a credible way of repaying the whole amount at the end. A possible future windfall does not count.[1]
Many buyers choose a fixed deal for the first few years, then switch (remortgage) when it ends. The right choice depends on your plans and how much change in payments you could cope with, which is exactly what an adviser can help with.
How lenders decide how much to lend
- They must assess whether you can pay, rather than relying on the value of the property.[2]
- They must get independent evidence of your income and cannot accept self-certification.[2]
- They must allow for interest rates rising, by at least 1 percentage point over at least five years.[2]
Before you start, work out roughly what you could borrow and what the monthly cost would be with our mortgage calculator. Your own deposit, income and outgoings decide what a lender will offer.
How big a deposit?
There is no official “typical” deposit, and what a lender asks for depends on the lender and the deal. The official figures that exist are for schemes: the Mortgage Guarantee Scheme supports mortgages of 91% to 95% of the price, which means a deposit of 5% to 9%, and Shared Ownership usually asks for 5% to 10% of the share you buy.[6][7] Our first-time buyers guide covers both, along with the Lifetime ISA.
Getting advice, safely
- 1
Check the firm is authorised
Use the FCA’s Firm Checker. The Financial Services Register is the official public record of authorised firms and individuals, and you should avoid firms that are not authorised or lack the right permissions.[3]
- 2
Match the contact details
The contact details a firm gives you should match those on the register.[3]
- 3
Ask what they charge and which lenders they use
Brokers and advisers differ, so ask whether they look at the whole market and how they are paid.
- 4
Know the support available
The government’s Mortgage Charter asks signatory lenders to offer extra flexibility to people who struggle with payments.[8]
Once you have an idea of your budget, see how buying works, and register your search so we can tell you about suitable homes.
Sources
Every figure and rule above comes from one of these, read in October 2026. The dates are the ones each publisher shows as when the page was last updated.
- [1]Support with mortgages and interest rates (opens in a new tab)Financial Conduct Authority · page updated 14 May 2026
- [2]FCA Handbook, MCOB 11.6: responsible lending (opens in a new tab)Financial Conduct Authority
- [3]How to check a firm or individual is authorised (opens in a new tab)Financial Conduct Authority · page updated 22 September 2026
- [4]Mortgage rule review (opens in a new tab)Financial Conduct Authority · page updated 9 June 2026
- [5]High loan-to-income lending: policy statement (opens in a new tab)Bank of England (Prudential Regulation Authority and Financial Conduct Authority) · page updated 14 October 2026 (published)
- [6]2025 Mortgage Guarantee Scheme (opens in a new tab)GOV.UK (HM Treasury) · page updated 15 July 2025 (published)
- [8]Mortgage Charter (opens in a new tab)GOV.UK (HM Treasury) · page updated 26 March 2026 (published)
This is general information, not financial advice, and John Grants does not advise on mortgages. Your home may be repossessed if you do not keep up repayments on your mortgage. Speak to an FCA-authorised mortgage adviser about your own circumstances.