Mortgage & Property — Page 21

Lenders typically apply a stress test of 3% above the current rate to check you could afford repayments if rates rose. Most lend 4–4.5x your gross annual income, though some offer up to 5.5x for high earners. Outgoings, credit score and deposit size all affect the final offer. Use the mortgage affordability calculator to estimate your maximum borrowing.

Buy-to-let mortgages are for properties rented out to tenants. They typically require a minimum 25% deposit and the rental income must usually cover 125–145% of the monthly mortgage payment. Mortgage interest relief for landlords has been replaced with a basic-rate tax credit since April 2020. Articles in this category explain the current rules and tax implications.

If you buy a second home or investment property in England, an extra 3% SDLT surcharge applies on top of standard rates. For 2026/27, this means 3% on the first £125,000, 5% on £125,001–£250,000, and 8% on £250,001–£925,000. The surcharge is refunded if you sell your previous main home within 3 years.

The Mortgage Guarantee Scheme allows first-time buyers to get a 95% LTV mortgage on homes up to £600,000. Shared Ownership lets you buy a 10–75% share and pay rent on the rest. The Lifetime ISA provides a 25% government bonus (up to £1,000/year) to boost your deposit savings. Each scheme has its own eligibility rules covered in the blog articles.

Remortgaging means switching your mortgage to a new deal, either with your existing lender (product transfer) or a new lender. It is most common when a fixed-rate term ends, as you revert to the higher standard variable rate (SVR). You can also remortgage to release equity, change your term length, or consolidate debt. Remortgaging usually has solicitor and valuation fees.

An offset mortgage links your savings account to your mortgage. The savings balance is offset against the mortgage balance so you only pay interest on the difference. For example, a £200,000 mortgage offset against £20,000 savings means you pay interest on £180,000. Useful for higher-rate taxpayers since no interest is earned (and therefore not taxed) on the savings.

HMRC publishes SDLT rates at gov.uk/stamp-duty-land-tax. Revenue Scotland covers LBTT (lrs.gov.uk) and Welsh Revenue Authority covers LTT (gov.wales). The CalcHub stamp duty calculator includes all three systems and is updated after any Budget changes.