FAQ

Your monthly repayment depends on how much you borrow, the interest rate, and the term. A larger loan or higher rate pushes the payment up; a longer term lowers the monthly figure but raises total interest.

Most UK home loans are capital-and-interest: each month you pay interest and reduce the balance. Early on more goes to interest; later more goes to capital.

You usually move to a new rate — often the lender’s standard variable rate (SVR), or a new fixed or tracker if you switch in time. Even a one or two percentage point change can raise the payment a lot. Fixed deals are priced mainly off swap rates, not just Bank Rate.

Start comparing four to six months before the fix ends so you can avoid the SVR. Modelling a higher rate in the calculator shows the headroom you need.

A product transfer is a new deal with your current lender. A remortgage moves the loan to a different lender. Both can avoid the SVR if you complete in time.

Transfers are usually simpler and often skip a full affordability check if you are not borrowing more or changing the term — helpful if you are self-employed, have irregular income, or recently took on salary sacrifice or new loans. Remortgaging opens the market but means a full application, credit checks, and conveyancing.

Compare rate plus fees. Tell your current lender if you apply elsewhere so two deals do not start at once.

Yes. Under the Mortgage Charter, signatory lenders let customers who are up to date lock in a new deal with that lender up to six months before the fix ends — an “insurance rate” you can review if the market moves.

If you stay put and rates fall, you can often switch to a cheaper like-for-like product transfer up to about two weeks before the new term starts, without a fresh affordability check (same loan size and repayment type). Remortgaging elsewhere is a separate application; upfront fees may not be refundable if you cancel.

A fixed rate keeps the payment steady for the deal term. A tracker moves with Bank Rate plus a margin, so the payment can rise or fall.

Fixes follow swap rates and lender competition, so they can be cheaper or dearer than trackers even when Bank Rate is unchanged. Trackers often have lower early repayment charges. Compare total cost and how much payment change you can absorb.

A two-year fix lets you reassess sooner; a five-year fix buys longer certainty. Average rates for the two terms can sit close together when lenders compete.

Choose shorter if you may move or remortgage soon (watch early repayment charges). Choose longer if stable payments matter most. Compare total cost and model a higher rate at renewal if you take the shorter fix.

Leaving a fixed deal early can trigger an early repayment charge (ERC). A new lender may also charge arrangement, valuation, and legal fees.

If your deal is ending soon, complete the switch after the ERC period. You can often lock a rate months ahead and set the start date for after expiry. Compare rate plus fees, not the headline rate alone.

A longer term lowers each payment but raises total interest. A shorter term does the opposite.

Pick what you can afford month to month. Taking a longer term and overpaying only helps if you actually make those overpayments.

If you are up to date, Mortgage Charter lenders can offer temporary options without a new affordability check — and asking about support does not affect your credit file. Common options include interest-only for six months, or extending the term with the option to revert within six months.

These are short-term: interest-only does not cut the balance, and a longer term costs more interest unless you shorten it later. If you are in arrears, contact your lender early.

It is charged in slices: each portion of the price above a threshold is taxed at a higher rate. England and Northern Ireland use Stamp Duty Land Tax (SDLT); Scotland uses LBTT; Wales uses LTT. Current residential bands from 1 April 2025 are on the official sites for each nation.

The bill is the sum of tax on each slice — not one flat percentage of the whole price. Use the stamp duty calculator for a worked figure.

In England and Northern Ireland, qualifying first-time buyers can claim relief on a main home priced at £500,000 or less: 0% on the first £300,000 and 5% on the rest up to £500,000. Above £500,000, relief is withdrawn and standard SDLT bands apply to the full price.

Scotland has its own first-time buyer relief under LBTT (a higher nil-rate threshold). Wales does not have a separate first-time buyer relief — everyone uses the same LTT residential bands, which already include a higher nil-rate threshold than England’s standard SDLT.

In England and Northern Ireland you must never have owned a major interest in a residential property anywhere in the world, and you must intend to live in the property as your main home. Every buyer named on the purchase must qualify — if one has owned before, standard rates apply to the whole deal.

Scotland sets its own eligibility under LBTT. Wales has no separate first-time buyer relief to claim.

Yes. Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT). Each has its own bands and surcharges instead of SDLT.

Always use the rules for the nation where the property sits — the stamp duty calculator can switch between England & NI, Scotland, and Wales.

Buying an additional residential property usually costs more tax. In England and Northern Ireland a 5% surcharge is added on top of each standard SDLT band. Scotland charges Additional Dwelling Supplement (currently 8%) on the whole price. Wales uses higher residential LTT rates for additional properties.

Replacement of a main home can work differently — you may pay the higher rate at completion and reclaim later if you sell the old home in time.

In England and Northern Ireland, if you buy a new main home before selling the old one you may pay the 5% additional-dwelling surcharge at completion. You can usually reclaim that surcharge if you sell the former main home within 36 months and meet HMRC’s conditions.

Scotland and Wales have their own replacement rules and time limits under LBTT and LTT — check Revenue Scotland or the Welsh Revenue Authority before you rely on a refund.

In England and Northern Ireland, non-UK resident buyers usually pay an extra 2% SDLT on top of the rates that otherwise apply (including the additional-dwelling surcharge where relevant). You are generally non-resident for SDLT if you were not present in the UK for at least 183 days in the 12 months before purchase.

Scotland and Wales do not use the same non-resident SDLT surcharge — check LBTT or LTT rules if you are buying there.

Many lenders accept 5% to 10%, though cheaper rates often need 15% or more. A larger deposit lowers your loan-to-value (LTV), which can unlock better rates and means you borrow less — so the monthly payment falls for both reasons.

The trade-off is tying up more cash upfront. Keep a buffer for fees, moving costs, and emergencies rather than stretching the deposit to the last pound.

Often yes. The government’s permanent Mortgage Guarantee Scheme (from July 2025) supports 91–95% LTV mortgages via participating lenders. You apply to the lender, not the government.

Typical scheme rules: main home in the UK, price £600,000 or less, deposit 5% to 9%, plus the lender’s credit and affordability checks. High-LTV rates are usually higher than for larger deposits, and not every 95% deal uses the scheme.

Yes — overpaying cuts the balance interest is charged on, which can save interest and shorten the term (or, on some deals, lower future payments).

Fixed deals often allow around 10% of the balance a year without an early repayment charge. Check your offer before exceeding that.

Add council tax, buildings insurance, maintenance, and any service charge. Upfront buying costs — conveyancing, searches, survey, and mortgage fees — sit on top of the deposit and stamp duty.

Budget for those alongside the repayment for a more realistic monthly picture. The council tax calculator can size that bill by band and area.

Each repayment reduces the loan, so your equity grows. Price rises boost equity further; price falls can shrink it even as you repay.

Early payments are mostly interest, so the balance falls slowly at first. Equity also includes any change in the property’s market value, not just what you have repaid.