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Buying a home in the UK

A Simple Guide to Getting a Mortgage in the UK

Buying a property in the UK can feel complex, especially if it’s your first time or your situation isn’t straightforward. This guide explains how UK mortgages work, what lenders typically look for, and how a mortgage broker can help you secure the right deal.

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Pasquale Bellini - Dr Mortgage

Pasquale “Pas” Bellini is a multilingual mortgage and protection specialist with over 15 years’ experience in financial services worldwide.  Pas advises on all types of lending, including first-time buyer, home mover, remortgage, buy-to-let, & expat mortgages across the UK and mainland Europe. 

He also specialises in protection solutions, including Life Insurance, Critical Illness Cover, Income Protection, and Buildings & Contents Insurance, helping clients protect both their property and their future.

Typical Mortgage Requirements in the UK

​While every lender is different, most will assess the following:

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1. Income & Salary Calculations

  • Most UK lenders calculate how much you can borrow as a multiple of your income.

  • Typically 4 to 4.5 times your annual income

  • Some lenders may offer up to 5 or 5.5 times income for higher earners or strong applications.

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2. Income types that may be accepted:

  • Basic salary

  • Bonuses and commission (usually averaged over 2–3 years)

  • Overtime

  • Self‑employed income (net profit or salary + dividends)

  • Lenders will also assess affordability by reviewing:

  • Monthly commitments (loans, credit cards, childcare)

  • Living costs

  • Interest rate stress tests

​​

3. Income & Employment Verification

  • Employed applicants usually need their latest payslips and P60

  • Self‑employed applicants typically need 2–3 years of accounts or tax calculations (SA302s)

  • Contractors may be assessed on daily rate or contract value

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4. Deposit & Loan to Value (LTV)

Loan to Value (LTV) is the percentage of the property price you borrow.

Example:

  • Property price: £300,000

  • Deposit: £30,000

  • Mortgage: £270,000

  • LTV: 90%

Lower LTVs usually mean better interest rates.

​​

5. Credit History & Debt Assessment

  • A strong UK credit history is essential

  • Debt-to-income (DTI) ratio plays a key role in approval.

  • Tip: Having a Canadian bank account and active Canadian credit history can improve eligibility.

​​

6. First-Time Buyer Mortgages

  • A first-time buyer is someone who has never owned a property before.

  • Typical features:

  • Minimum deposit: 5%–10%

  • LTVs up to 95% available with selected lenders

  • Access to schemes such as Shared Ownership or guarantor options (subject to criteria)

  • Lenders will also consider:

  • Credit history

  • Regular saving habits

  • Stability of employment

​​

6. Buy-to-Let Mortgages

  • Buy‑to‑let mortgages are for properties purchased to rent out.

  • Key differences:

  • Minimum deposit usually 20%–25%

  • Maximum LTV commonly 75%

  • Affordability based mainly on rental income, not personal salary

  • Rental income typically must cover 125%–145% of the mortgage payment (stress‑tested)

  • Buy‑to‑let can be arranged:

  • In personal name

  • Through a limited company (often popular for tax planning)​​​​​

Visa & Residency Requirements

​

1. UK mortgage availability depends on your residency status.

Common scenarios:

  • British citizens / Indefinite Leave to Remain (ILR): Access to most lenders

  • Skilled Worker or other long‑term visas: Many lenders available, often with higher deposit requirements

  • Short‑term visas: Fewer lenders, typically higher deposits (15%–25%+)

 

Lenders may require:

  • A minimum length remaining on your visa

  • Proof of UK address and employment history

​​​

1. Credit History & Documentation

  • Most lenders will review your credit file. Factors include:

  • Payment history

  • Credit utilisation

  • Defaults or missed payments

  • Typical documents required:

  • Photo ID and proof of address

  • Payslips or accounts

  • Bank statements (usually 3–6 months)

  • Proof of deposit

​​

2. UK Tax Obligations

  • Declaring Foreign Rental Income: As a UK resident, you're required to report your worldwide income, including Canadian rental income, on your Self Assessment tax return.

  • Foreign Tax Credit Relief: To avoid double taxation, you can claim Foreign Tax Credit Relief for the Canadian taxes paid on your rental income. This relief offsets the UK tax due on the same income, ensuring you're not taxed twice.

 

3. How a Broker Helps You Succeed

  • A mortgage broker will:

  • Assess your circumstances upfront

  • Advise how much you can realistically borrow

  • Identify lenders most likely to accept your application

  • Handle the application and liaise with solicitors and lenders

  • This can be especially valuable if you are a first‑time buyer, self‑employed, a landlord, or a visa holder

  • .

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4. Next Steps

  • If you’re considering buying or refinancing a property, speaking to a mortgage broker early can save time, money, and stress. A clear plan and the right advice make all the difference.

 

*This guide is for general information only and does not constitute mortgage advice. Criteria and lending policies can change.

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