Residential

Choose the property you will call home

Buying a house is often a challenging process filled with numerous considerations, from understanding different mortgage options to handling legal requirements and costs and fees.

Here’s a comprehensive guide on how our team of specialist mortgage advisors are able to provide you with the advice you need to obtain the best mortgage deal bespoke to your situation, whatever it might be.

Mortgages for your home

When it comes to purchasing a new home, mortgages can be the resource that will make it possible. This type of loan is designed to give you the ability to finance your new property. With a mortgage, you have the opportunity to secure the home of your dreams by using the value of the property itself as security for your loan.

One of the key features of a mortgage is the repayment structure. Rather than paying the entire purchase price upfront, for example, £400,000, you can take a loan from your bank for a percentage of the property’s value and spread the repayments over anything between 5 and 40 years. This time frame enables you to make manageable monthly payments, ensuring that homeownership remains within reach for a wider range of buyers.

It’s important to note that mortgages come in different variations, including fixed-rate and variable-rate options:

• Fixed-rate mortgage: Your interest rate remains consistent for a pre-defined number of years, be that 2, 3 or 5 years. This provides stability and predictability, as your monthly payments will remain the same over time.
• Variable-rate mortgage: Offers a fluctuating interest rate that may change periodically based on market conditions, including the Bank of England’s base rate movements or a lender’s own standard variable rate adjustments. This option provides potential flexibility, as your monthly payments may adjust accordingly and often enables clients to borrow without any early repayment penalties.

Choosing the right mortgage for your new home involves careful consideration of your financial situation, long-term goals, and risk tolerance. Our experienced mortgage advisors will ensure you select the one that best aligns with your needs and preferences. A mortgage is not just a loan but a pathway for you to move to your dream home.

Criteria for a first-time buyer

For first-time buyers, qualifying for a mortgage depends on several factors, such as: credit score, income, job stability, and debt-to-income ratio. Before, lenders would require a deposit payment of at least 5%. Recently, some lenders will offer a 100% loan-to-value mortgage for those who are eligible.

Our advisors will assess the following criteria to determine your eligibility for a mortgage:

• Credit score: Lenders will assess your credit history by looking at your score. But don’t worry if your credit score is less than perfect. As a specialist broker, Reliance Mortgages has access to lenders willing to accept certain missed payments, county court judgements, or defaults.
• Income: Lenders consider your income to ensure you have the financial means to make mortgage payments. If your income is not consistent, we work with lenders who support borrowers with less stable incomes, including those who are self-employed.
• Job stability: A consistent employment history increases confidence for lenders. However, if you're self-employed, on a zero-hour contract, or a limited company director, Reliance Mortgages can still help you access mortgage solutions.
• Debt-to-income ratio: This ratio compares your total monthly debt payments to your monthly income. A lower ratio increases your chances of mortgage approval. Even if yours is high, we can connect you to specialist lenders who may still support your application.
• Deposit: First-time buyers can put down a deposit as little as 5%. Recently, lenders have introduced options for 100% loan-to-value mortgages (no deposit required!). If you’re interested, get in touch and we’ll quickly check if you qualify.

The larger the deposit, the better the interest rate you’re likely to receive. Speak to one of our friendly mortgage advisors to assess your eligibility and get tailored advice.

How much can I borrow as a first buyer?

As a first-time buyer, the amount you can borrow primarily depends on your financial situation. Lenders use a formula called the loan-to-income ratio (LTI) to determine your maximum loan amount. This ratio compares what you earn to what you can borrow.

For example, a lender offering a loan-to-income of 4x income will offer an applicant with an annual income of £50,000 a mortgage of £200,000 (£50,000 x 4).

Loan to value ratio

The loan-to-value (LTV) ratio is the percentage of the property’s value that you can borrow. For example, an 80% LTV means you can borrow 80% of the property’s value, and the remaining 20% must come from savings or a gift.

This can vary depending on the lender and your affordability. Some offer higher LTVs, even up to 100%, meaning no deposit required. We work with lenders offering flexible LTVs from as low as 5% deposit.

Whether you are a first-time buyer or looking to move home, our advisers will provide you with a same-day mortgage quote as we have access to the whole of the market.

Cost of Stamp Duty (SDLT)

Stamp Duty Land Tax (SDLT), commonly referred to as Stamp Duty, is a tax payable when purchasing residential property in England above specific thresholds.

Current Thresholds (2025):

• First-time buyers: No SDLT is due on properties up to £425,000, with discounted rates available up to £625,000.
• Home movers: SDLT applies on purchases over £250,000.

Standard Residential Rates:

• 0% on the portion up to £250,000
• 5% on the portion from £250,001 to £925,000
• 10% on the portion from £925,001 to £1.5 million
• 12% on the portion above £1.5 million

First-Time Buyer Relief (on properties up to £625,000):

• 0% on the portion up to £425,000
• 5% on the portion from £425,001 to £625,000

Additional Property Surcharge:

A 3% surcharge applies on top of standard rates if you're purchasing an additional residential property, such as a second home or buy-to-let investment.

Please note: Stamp Duty rates and thresholds are subject to change.

For the most accurate and up-to-date information, visit the official HMRC guidance:
www.gov.uk/stamp-duty-land-tax/residential-property-rates

Credit reports and scores for mortgages

Your credit score influences mortgage approval and interest rates. Higher scores typically secure better rates. A quick tip: register to vote at your current address—it can boost your credit score.

Not sure about your score? Reliance Mortgages works with lenders who can consider various credit scenarios.

Mortgages for a homemover

If you’re moving, you may be able to transfer your existing mortgage to a new property or apply for a new one. Your choice depends on your current interest rate, lender terms, and new mortgage size.

Contact us and one of our mortgage brokers will help assess the best route forward. You'll receive clear, tailored advice while staying in control of your decision.

Why remortgage?

Remortgaging means switching your current mortgage to a new one, either with your existing lender (a product switch) or a new lender. The goal is often to secure a better rate, reduce monthly repayments, or release equity.

Many UK mortgages have fixed or discounted rates for 2 to 5 years. We proactively contact our clients 7 months before the deal ends to ensure the most competitive rate is secured going forward.

Residential mortgages are often the key to owning your dream home. Whether buying your first property or remortgaging, understanding your eligibility, repayment options and market offers is vital.

Reliance Mortgages is here to support you every step of the way. Get in touch to receive an initial mortgage quote within 15 minutes.

Book Your Free Consultation Today